MOA GROUP ANNUAL RESULT CAPITAL RAISE AND SPP

Moa Group Limited
Results for announcement to the market

Reporting Period 12 months to 31 March 2018
Previous Reporting
Period
12 months to 31 March 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 10,454 2%
Profit (loss) from
ordinary activities after
tax attributable to
security holder
($NZ 2,548) -8%
Net profit (loss)
attributable to security
holders
($NZ 2,548) -8%

Interim/Final Dividend Amount per security Imputed amount per
security
It is not proposed to pay
dividends at this time.
Nil

Record Date n/a
Dividend Payment Date n/a

Comments: A brief Refer Financial Statements.

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Moa Brewing Company
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+64 9 367 9481
+64 9 367 9468
www.moabeer.com


Moa Brewing Company
70 Richmond Road
Auckland 1021
New Zealand
P.O. Box 105542

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30 MAY 2018
MOA GROUP ANNUAL RESULT, CAPITAL RAISE AND SPP.

Today Moa Group Limited (NZX:MOA) New Zealand’s largest independent brewer releases its fully audited annual
result and announces a capital raise to part fund further growth strategies.
As signalled in the 30 April 2018 trading update announcement, the annual result is relatively consistent with last year.
Revenue grew from $10.24 m to $10.45 m. And EBITDA moved from a loss of $1.96 to $2.08m. The full year loss
moved slightly from $2.32m to $2.55m. Growth slowed as a result of exiting the distribution arrangement with another
craft brand. The Moa brand itself has been in growth in New Zealand during the year, and more so of late on the back
of recent successful new product launches. The Moa brand has grown strongly in China.
The year had a number of highlights:
- Moa secured the number 3 position in the New Zealand craft market
- Moa signed a distribution agreement with a partner in China (the world’s fastest growing craft beer market)
which has committed to investing in a specific Moa sales force
- The year had a number of cashflow positive months – indicating the continuing development of the business
- The successful launch of a number of new products which have been well received by consumers
The movement in EBITDA was the result of investment in China and additional brewing capacity to facilitate further
growth in the brand. We expect to see the benefits from both of these investments into FY19.
Moa recently announced a sales partnership with New Zealand’s number 3 Wine player - Constellation Brands. The
partnership gets under way from June 1 and sees the effective sales force for Moa grow considerably. The venture will
see the creation of one of New Zealand’s largest beverage sales teams with material cost savings for Moa.
The company also announced today a capital raise by the company of $1.92m (3.73m shares to be issued) at a price
of 51.32c per share (representing the 20 day VWAP
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prior to board approval). The investors include directors Geoff
Ross and David Poole and prominent US investor Rich Frank. This additional capital will be used to fund working
capital and to assist in the execution of a number of growth opportunities. The capital raise demonstrates the
confidence the investors have in Moa and the future success of the business.
The Moa Board will offer retail shareholders the ability to contribute additional capital on similar terms. Eligible
shareholders will be able to purchase up to $15,000 of shares on similar or better terms to today’s placement through
a share purchase plan (SPP). Further details will be announced and documentation will be posted to shareholders in
the next few weeks.
Moa Group Executive Chairman Geoff Ross said ”We are well positioned for the next stage in our evolution. Our
strong domestic market position, recent growth in China and sales partnership with Constellation reflect the strength of
the brand and our products. With the additional capital raised today we will be able to accelerate our growth and take
the business to the next level.”.

For more information contact Geoff Ross on 021 424 219.



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VWAP refers to Volume Weighted Average Share Price

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© 2018 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Independent Auditor’s Report
To the shareholders of Moa Group Limited
Report on the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Moa Group Limited (the
company) and its subsidiaries (the group) on pages
7 to :
i.present fairly in all material respects the Group’s
financial position as at 31 March 2018 and its
financial performance and cash flows for the
year ended on that date; and
ii.comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated statement of financial position
as at 31 March 2018;
— the statements of comprehensive income,
changes in equity and cash flows for the year
then ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ ISAs (NZ)’) . We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 (Revised) Code of
Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to advisory services. Subject to certain
restrictions, partners and employees of our firm may also deal with the group on normal terms within the
ordinary course of trading activities of the business of the group. These matters have not impaired our
independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $216,000 determined with reference to a benchmark of group revenues. We
chose the benchmark because, in our view, this is a key measure of the group’s performance.

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Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements
The key audit matter How the matter was addressed in our audit
Funding and capital adequacy
The group incurred a loss and had
negative operating cash outflows.
The group has funded its growth
over the last 5 years
through a
c
ombination of equity and bank
funding. Further funding is required
as forecast operating cash
outflows could potentially be larger
than the cash and debt available.
Subsequent to year end,
management and the directors
secured additional equity funding of
$1.92m.
Funding and capital adequacy is a
key audit matter as there is
judgement applied by the directors in
determining the forecast cash flows
of the group, which are the basis for
concluding the group is a going
concern.
The directors have outlined their
assessment of going concern in note
1 (e) to the financial statements.
Our audit procedures included:
- Assessing and evaluating the cash flow forecasting processes
and the historical accuracy of previous forecasts against actual
performance;
- Assessing the key assumptions underlying the current
forecasts and comparing them to recent trends in the
business, including revenue growth, margin growth and
management of operating expense and working capital;
- Considering independent reports and data on the recent and
forecast market growth of craft beer sales in New Zealand and
export markets;
- Challenging key assumptions where inconsistencies were
identified as a result of the above procedures and consideration
of alternative scenarios;
- Evaluating management’s assessment of the entity’s historical
and forecasts compliance with debt covenants;
- Agreeing the amount of equity funding received subsequent to
balance date to source documentation and legal confirmation:
- Assessing the disclosure in the financial statements against
the requirements of the accounting standards.
Based on the procedures performed above, the director’s determination
that the financial statements are prepared on a going concern basis is
reasonable.
Revenue recognition
Refer to Note 1(d) to the Financial
Report.
Revenue is recognised based on the
terms of sale or distribution
agreement. In most cases, Moa
retain responsibility for goods while
in transit; therefore revenue is
recognised when the products have
been delivered to the customer and
possession taken.
Our audit procedures included:
- Analysing agreements between the group and it largest
customers to determine whether group’s policies and
procedures for recognition of revenue are consistent with the
accounting standards;
- Assessing and testing of relevant controls over the timing of
revenue recognition;
- Testing the recognition of a sample of revenue transactions
prior to year end to determine whether they are recorded in the
correct period. This included agreement to shipping

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The key audit matter How the matter was addressed in our audit
Revenue recognition is a key audit
matter due to:
- Large orders potentially being
placed on or around balance date for
which up to 10 days can pass
between the date of dispatch and
possession taken by the customer;
- The incentives that exist for
management to recognise sales in
the period prior to year-end.
documentation, proof of delivery at the customer’s premises,
terms and conditions of trade, or other documentation
indicating the date when the risks and rewards of ownership
passed to the buyer;
- Analysing credit notes issued after year end for evidence of
post year end reversal of revenues recognised during the year.
We did not find any evidence that recording of revenue around balance
date was materially incorrect.
Other information
The Directors, on behalf of the group, are responsible for the other information included in the group’s Annual
Report. Other information may include the director’s report and corporate governance information and the other
information included in the Annual Report. Our opinion on the consolidated financial statements does not cover
any other information and we do not express any form of assurance conclusion thereon.
The Annual Report is expected to be made available to us after the date of this Independent Auditor's Report. Our
responsibility is to read the Annual Report when it becomes available and consider whether the other information
it contains is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the
audit, or otherwise appear misstated. I f so, we are required to report such matters to the Directors.
Other matter
The consolidated financial statements of the group, for the year ended 31 March 2017, was audited by another
auditor who expressed an unmodified opinion on those statements on 29 May 2017.
Use of this independent auditor’s r eport
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;

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— implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
— to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Jason Doherty.
For and on behalf of

Jason Doherty
KPMG Auckland
30 May 2018