DGL – 2018 Full Year Results Presentation

FY18 RESULTS

24 August 2018

Introduction to meeting.


Business Performance – 2018 Year
under review.


Investing for the Future.


Delegat Outlook.


AGENDA
2

Record global case sales of 2,736,000.
3% higher than last year.

Record Operating NPAT of $44.9 million.
17% higher than last year.

Strong cash flows from operations of $57.8
million.

Dividend increased on strong operational
performance and cash flows – 15.0 cents.
PERFORMANCE HIGHLIGHTS
3

CASE SALES AND FX
4
Case Sales (000's)
Jun 2018
Actual
Jun 2017
Actual
% Change
vs 2017
UK, Ireland and Europe687 736 -7%
North America (USA and Canada)1,250 1,135 10%
Australia, NZ and Asia Pacific799 785 2%
Total Cases2,736 2,656 3%
Foreign Currency Rates
Jun 2018
Actual
Jun 2017
Actual
% Change
vs 2017
GB£0.5312 0.5262 -1%
AU$0.9179 0.9374 2%
US$0.7075 0.7056 0%
CA$0.9034 0.9359 3%

REVENUE GROWTH ANALYSIS
5
NZ$ millions
Jun 2018
Actual
Jun 2017
Actual
% Change
vs 2017
Operating Revenue262.9 247.7 6%
Revenue movements breakdown:
Volume3%
Value3%
Foreign Exchange1%
Underlying Price/Product Mix2%

OPERATING PERFORMANCE
6
NZ$ millions
Jun 2018
Actual
Jun 2017
Actual
% Change
vs 2017
Sales Revenue262.9 247.7 6%
Operating Revenue272.1 251.3 8%
Operating Gross Profit146.6 134.0 9%
Operating Gross Margin54%53%
Operating Expenses(72.1) (66.7) -8%
Operating EBIT74.5 67.3 11%
Operating EBIT % of Revenue27%27%
Interest and Tax(29.6) (28.8) -3%
Operating NPAT44.9 38.5 17%
Operating NPAT % of Revenue17%15%
Operating EBITDA89.6 81.1 10%
Operating EBITDA % of Revenue33%32%

OPERATING PROFIT MOVEMENT – LAST YEAR
7
NZ $millions
20.0
24.0
28.0
32.0
36.0
40.0
44.0
48.0
52.0
Jun 2017 ActualMargin impactPromotion costsNet FX ImpactInterestOtherJun 2018 Actual
($2.1m)
($0.4m)
$38.5m
$44.9m
$0.1m$8.0m
$0.8m

IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS
8
NZ$ millions
Jun 2018
Actual
Jun 2017
Actual
% Change
vs 2017
Operating NPAT44.9 38.5 17%
Operating NPAT % of Revenue17%15%
Biological Produce (Grapes)
1
5.5 1.6
n/m
2
Derivative Instruments (2.9) 1.4
n/m
2
Total Fair Value Items2.6 3.0 -10%
Less: Tax (0.7) (0.8) 10%
Fair Value Items after Tax 1.9 2.2 -10%
Reported NPAT46.8 40.7 15%
1. Bi ol ogi ca l Produce (Gra pe s ) i s the di ffe re nce be twe e n ma rke t va l ue pa i d for gra pe s ve rs us the cos t to grow gra pe s . The ha rve s t
provi s i on i s re ve rs e d a nd onl y re cogni s e d whe n the fi ni s he d wi ne i s s ol d.
2. n/m me a ns not me a ni ngful .

REPORTED PROFIT MOVEMENT – LAST YEAR
9
NZ $millions
20.0
24.0
28.0
32.0
36.0
40.0
44.0
48.0
52.0
Jun 2017 ActualMargin impactPromotion costsNet FX ImpactInterestOtherJun 2018 Actual
($2.1m)
($0.8m)
$40.7m
$46.8m
$0.1m
$10.7m
($1.8m)

BALANCE SHEET SUMMARY
10
NZ$ millions
Jun 2018
Actual
Jun 2017
Actual
% Change
vs 2017
Assets
Current Assets190.1 171.4 11%
Fixed Assets514.5 482.9 7%
Total Assets704.6 654.3 8%
Liabilities
Current Liabilities42.5 34.3 24%
Deferred Tax Liabilities33.7 31.1 8%
Net Debt281.5 278.0 1%
Other Non-current Liabilities3.7 3.8 -1%
Total Liabilities361.4 347.2 4%
Equity
Shareholders' Equity343.2 307.1 12%
Total Equity343.2 307.1 12%
Total Liabilities and Equity704.6 654.3 8%

NET DEBT MOVEMENT
11
NZ $millions
150.0
160.0
170.0
180.0
190.0
200.0
210.0
220.0
230.0
240.0
250.0
260.0
270.0
280.0
290.0
300.0
June 2017
Actual
Cash from
Operations
Working CapitalCapexDividendFXJune 2018
Actual
$2.2m
$46.0m
$278.0m
$281.5m
$12.4m
($70.2m)
$13.1m

NET DEBT OVERVIEW
12
NZ$ millions
Jun 2018
Actual
Jun 2017
Actual
% Change
vs 2017
Funding
Operating Cash Flow57.8 59.2 -2%
Net Debt281.5 278.0 -1%
Key Ratios
Operating Profit Measures
Interest Cover6.23 5.14 21%
Return on Equity
1
15.7%15.1%4%
Return on Capital Employed
2
13.2%12.6%5%
Reported Profit Measures
Interest Cover6.45 5.37 20%
Equity / (Equity + Net Debt) %54.9%52.5%5%
Return on Equity14.4%13.9%4%
Return on Capital Employed12.7%12.2%4%
1. Return on Equi ty (Operati ng) excl udes al l fai r val ue i tems from both NPAT and As s ets /Li abi l i ti es .
2. Return on Capi tal Empl oyed (Operati ng) excl udes al l fai r val ue i tems from both EBIT and As s ets /Li abi l i ti es .

NZ Harvest was a record 38,012
tonnes:
- delivered very good quality;
- was 10% higher than last year.

Barossa Valley Harvest was 2,047
tonnes and is of a very high standard.



2018 HARVEST
13

Introduction to meeting.


Business Performance – 2018 Year
under review.


Investing for the Future.


Delegat Outlook.


AGENDA
14

15
2016: Includes vineyard developments
in Hawke’s Bay, Marlborough and
Barossa Valley, completion of Hawke’s
Bay Winery, land acquisition in New
Zealand and Australia.

2017: Includes vineyard and winery
developments in Hawke’s Bay,
Marlborough and Barossa Valley.

2018: Includes vineyard and winery
developments in Hawke’s Bay,
Marlborough and Barossa Valley, and
land acquisition in New Zealand.

2019: Includes vineyard and winery
developments in Hawke’s Bay,
Marlborough and Barossa Valley.

INVESTING IN GROWTH - CAPITAL EXPENDITURE UPDATE
Million of $

Introduction to meeting.


Business Performance – 2018 Year
under review.


Investing for the Future.


Delegat Outlook.

AGENDA
16

DELEGAT SALES GROWTH 2016 - 2021
17
Thousands 9 Litre Cases

Case Sales (000s)
2018
Actual
2019
Forecast
2020
Projection
2021
Projection
Total Cases2,736 2,945 3,168 3,377
% Increase8%8%7%

FY19 Operating Profit Guidance
18
Based on prevailing exchange rates, the Group forecasts 2019 operating
profit to grow in line with global case sales growth.

Thank you