FY18 Results and Annual Report

ALLIED FARMERS AUDITED FULL YEAR RESULT TO 30 JUNE 2018

The Directors of Allied Farmers Ltd (“Allied”) (ALF:NZX) are pleased to report an audited net profit
before tax for the year to 30 June 2018 of $2.44m (2017 $2.39m). Allied has had a reduced
performance from the Livestock Division offset by a significant one-off recovery from the Asset
Management Services Division. The after tax share of the profit attributable to the Allied
shareholders is $1.54m (2017 $1.55m) It was always going to be difficult to replicate the
exceptional growth in livestock sales of last year and the margins on meat processing are
continually subject to international fluctuations.

The Livestock Division, which includes the operation of 66% owned NZ Farmers Livestock Ltd
(NZFL) reported a net profit before tax of $2.63m (2017 $2.70m). The reported shortfall in the
interim financial statements for the period ended 31 December 2017 of $0.2m, did not repeat, with
the second half Livestock Division result actually slightly ahead of last year’s strong second half.
Livestock sales were steady with commissions up 1% on the prior year. Returns from the meat
processing business were lower than the previous year with turnover lower due to the impact of
decreased international selling prices and margins reduced as costs of processing increased.
While the margins in this business can fluctuate, NZFL is seeking to grow this business and trialled
handling Autumn calves during the year.

On 1 July 2017 the final tranche of shares in Redshaw Livestock Ltd on the East Coast was
acquired taking NZFL’s shareholding to 52%. This year’s result includes the full year consolidated
result of Redshaws compared to last year’s equity accounted result.

The newly established financing subsidiary of the Livestock Division performed creditably – ahead
of the budgets set. Initially focussing on financing service bulls, it has expanded into general
livestock financing and at year end had receivables of $4.6m (2017 $2.1m)

The Asset Management Services Division (“AMS”) had been wound down as all assets of any
significant value have been realised. However, AMS had one significant recovery. AMS received
net proceeds of $441,000 from litigation relating to a loan asset that had previously being assigned
to a third party.

During the year there was a reduction in corporate interest costs due to a reduction in the Bond
interest rate.

The coming year will see challenges for the Livestock Division with the spread of M Bovis and the
steps to contain it. While the planned eradication program will see a demand for livestock and
possible opportunities, the uncertainties around livestock movements could cause some general
slowdown in ordinary livestock transactions. At this stage it is too early to assess any financial impact.
The initial outlook for the calf processing is positive with international prices starting to improve for
calf products. Additionally, an expansion to handle calves in the Manawatu region has commenced,
for review at season end.

The livestock business will be the prime focus of management in this uncertain market and the
company is evaluating opportunities to expand from its current activities. Again, the Directors wish
to highlight and acknowledge the considerable support and loyalty of all of the wider Allied Farmers
stakeholders, particularly the team and our many clients.

Garry Bluett

Chairman

---

ALLIED FARMERS LIMITED
ANNUAL REPORT 2018


1

CONTENTS


SECTION PAGE

Overview from the Chairman 3
Five year financial summary 4
Directors 5
Shareholder information 6
Corporate Governance Report 12
Consolidated Financial Statements 22
Statement of Accounting Policies 28
Notes to the consolidated financial statements 34
Auditors report 49
Company directory 53




This report is dated 29 August 2018 and is signed on behalf of the Board of Allied Farmers
Limited:

Garry Bluett Philip Luscombe
Chairman Director
2

ALLIED FARMERS LIMITED ANNUAL REPORT 2018


OVERVIEW FROM THE CHAIRMAN

The Directors of Allied Farmers Ltd (“Allied”) (ALF:NZX) are pleased to report an audited net profit
before tax for the year to 30 June 2018 of $2.44m (2017 $2.39m). Allied has had a reduced performance
from the Livestock Division offset by a significant one-off recovery from the Asset Management Services
Division. The after tax share of the profit attributable to the Allied shareholders is $1.54m (2017 $1.55m)
It was always going to be difficult to replicate the exceptional growth in livestock sales of last year and
the margins on meat processing are continually subject to international fluctuations.

The Livestock Division, which includes the operation of 66% owned NZ Farmers Livestock Ltd (NZFL)
reported a net profit before tax of $2.63m (2017 $2.70m). The reported shortfall in the interim financial
statements for the period ended 31 December 2017 of $0.2m, did not repeat, with the second half
Livestock Division result actually slightly ahead of last year’s strong second half. Livestock sales were
steady with commissions up 1% on the prior year. Returns from the meat processing business were
lower than the previous year with turnover lower due to the impact of decreased international selling
prices and margins reduced as costs of processing increased. While the margins in this business can
fluctuate, NZFL is seeking to grow this business and trialled handling Autumn calves during the year.

On 1 July 2017 the final tranche of shares in Redshaw Livestock Ltd on the East Coast was acquired
taking NZFL’s shareholding to 52%. This year’s result includes the full year consolidated result of
Redshaws compared to last year’s equity accounted result.

The newly established financing subsidiary of the Livestock Division performed creditably – ahead of the
budgets set. Initially focussing on financing service bulls, it has expanded into general livestock financing
and at year end had receivables of $4.6m (2017 $2.1m)

The Asset Management Services Division (“AMS”) had been wound down as all assets of any significant
value have been realised. However, AMS had one significant recovery. AMS received net proceeds of
$441,000 from litigation relating to a loan asset that had previously being assigned to a third party.

During the year there was a reduction in corporate interest costs due to a reduction in the Bond interest
rate.

The coming year will see challenges for the Livestock Division with the spread of M Bovis and the steps
to contain it. While the planned eradication program will see a demand for livestock and possible
opportunities, the uncertainties around livestock movements could cause some general slowdown in
ordinary livestock transactions. At this stage it is too early to assess any financial impact. The initial
outlook for the calf processing is positive with international prices starting to improve for calf products.
Additionally, an expansion to handle calves in the Manawatu region has commenced, for review at
season end.

The livestock business will be the prime focus of management in this uncertain market and the company
is evaluating opportunities to expand from its current activities. Again, the Directors wish to highlight and
acknowledge the considerable support and loyalty of all of the wider Allied Farmers stakeholders,
particularly the team and our many clients.

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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


Allied Farmers Limited and Subsidiaries
Five Year Financial Summary
June-18June-17June-16June-15 June-14
$000$000$000$000 '$000
Profit summary
Total operating income18,68317,47816,04015,342 16,081
Depreciation and amortisation546523532378 362
Interest expense594496658875 903
Other expenses15,10814,07213,27612,974 13,655
Net surplus (deficit) from continuing operations2,4352,3871,5741,115 1,161
Net deficit from discontinued operations- - - - -
Net surplus (deficit) before tax2,4352,3871,5741,115 1,161
Tax210158182460 -
Net surplus (deficit) after tax2,2252,2291,392655 1,161
Non controlling interests690677687527 133
Surplus/(deficit) attributable to owners of the Parent1,5351,552705128 1,028
June-18June-17June-16June-15June-14
$000$000$000$000$000
Statement of Financial Position summary
Shareholders equity3,4661,820105(1,475) (3,887)
Non current liabilities3,5512,9773,7825,208 4,000
Current liabilities13,3049,7198,8418,148 11,525
Total liabilities16,85512,69612,62313,356 15,525
Equity and liabilities20,32114,51612,72811,881 11,638
Current assets14,6909,7488,2977,771 7,813
Fixed assets4,1903,5393,6423,967 3,624
Non current assets690667475134 190
Investments0411232- -
Total tangible assets19,57014,36512,64611,872 11,627
Intangibles751151829 11
Total assets20,32114,51612,72811,881 11,638
June-18June-17June-16June-15June-14
$000$000$000$000$000
Ca sh F l o w su m m a r y
Operating cash flow1,7852,9611,518(929) 248
Investing cash flow(2,865) (2,467) (466) 997 326
Financing cash flow72 (1,395) (859) (665) 1,062
Net change in cash(1,008) (901) 193(597) 1,636


The amounts shown in this Five Year Financial Summary have been extracted from the audited financial
statements of Allied Farmers Limited and subsidiaries for the respective years.

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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


DIRECTORS


Mr Garry C Bluett - Chairman
Mr Bluett was appointed a Director of Allied Farmers Limited in October 2004. He has been Finance
Director of a major New Zealand retail group and has broad experience in the finance company and
corporate finance sectors. He currently has an ownership interest in a dairy operation in the Waikato. Mr
Bluett is an independent Director of Allied Farmers Limited. He has the following qualifications: BMS,
CA.

Mr Philip C Luscombe
Mr Luscombe was appointed a Director of Allied Farmers Limited in December 2005. He is an
experienced farmer with interests in dairy farms in Taranaki and Otago, and in farm forestry. He is a
Director of PKW Farms GP Limited, as well as a number of private companies. He is a trustee of The
Massey-Lincoln and Agricultural Industry Trust and a former trustee of the Massey University Agricultural
Research Foundation. He is a former director of Kiwi Cooperative Dairies Limited, Kiwi Milk Products
Limited, Dairy InSight and industry research company Dexcel. Mr Luscombe is an independent director
of Allied Farmers Limited. He has the following qualification: BAgSci(Hons).

Mr G Andrew McDouall
Mr McDouall was appointed a Director of Allied Farmers Limited in October 1999. He is Managing
Director of the stockbroking and investment banking group McDouall Stuart Group Limited, MSL Capital
Markets, and a director of a number of private companies. Mr McDouall is an independent director of
Allied Farmers Limited. He has the following qualifications: BCA, DipNZSE.


Mr Mark W Benseman

Mr Benseman was appointed a Director of Allied Farmers Limited in October 2015. Mr Benseman is an
experienced manager and financial analyst, with over 25 years’ experience in the investment industry.
Mark is currently the Principal of Fraters Group in New Zealand and in the past had a role as a senior
analyst with ABN AMRO New Zealand, was Director and Head of Research with Citigroup Smith Barney
in New Zealand, and similarly with Merrill Lynch (NZ). Mr Benseman is not an independent director. He
has the following qualifications: BA (Hons in Economics).
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018



SHAREHOLDER INFORMATION

DISCLOSURES OF INTEREST

Directors disclosed, pursuant to section 140 of the Companies Act 1993, changes in interests in the
following entities during FY18 (excluding directorships of wholly owned subsidiaries) in the Interests
Register:

Name Entity Relationship

Mark Benseman
Andrea Moore & Co Ltd
Roholm Limited
Director resigned 17 October 2017
Indirect Shareholder
Garry Bluett
Hot Lime Labs Limited
Aisleworx Group Limited
Appointed Director 17 January 2018
Resigned director 30 April 2018
Stephen Morrison
Saleyard Management Limited Appointed Director 20 February 2018
Except as disclosed above, there were no details included in the Interests Register as at 30 June 2017,
or entered during the year ended 30 June 2018, that have been removed during the year ended 30 June
2018.


DIRECTORS’ SHARE TRADING AND HOLDINGS

Between the 8 March 2018 and 12 March 2018, Mark William Benseman sold 210,000 ordinary shares
at an average price of 9.5cps.
Except as disclosed above, Directors disclosed there were no acquisitions and disposals of relevant
interests in Allied Farmers Limited shares during FY18 pursuant to section 148 of the Companies Act
1993.
As at 30 June 2018 directors, or entities related to them, held relevant interests (as defined in the
Financial Markets Conduct Act 2013) in Allied Farmers Limited Securities as follows:















Name

Number of Shares and percentage of shares on issue
Garry Bluett 4,249,711 (2.63%)
Mark Benseman 19,996,656 (12.38%)
Andrew McDouall 111,290 (0.068%)
Philip Luscombe 1,295,634 (0.80%)
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


. DIRECTORS’ REMUNERATION







* On 26 November 2015 Allied Farmers Limited issued 6,139,139 fully ordinary shares at $0.053265 per
share to directors Garry Bluett, Philip Luscombe, Andrew McDouall and former director Jeff Keenan in
satisfaction of $327,001 of accrued and unpaid directors’ fees owing to them.

** The above table reflects what has been paid out by the Company. The $204,093 of directors fees
actually paid in FY17 included the cash payment of $55,292 accrued but unpaid from the previous year.
Shareholders approved a cap on directors’ fees of $332,000 p.a. at the AGM in 2007. This cap includes
all directors fees paid in relation to Group subsidiary companies as well as for the Parent. In addition to
the above payments, Oliver Carruthers, a director of NZ Farmers Livestock Limited received total
remuneration and benefits from NZ Farmers Livestock Limited of $213,377.20, and Simon Williams, a
director of NZ Farmers Livestock Limited and NZ Farmers Livestock Finance Limited, received total
remuneration and benefits from NZ Farmers Livestock Limited of $104,068.29. In neither case did this
remuneration and benefits include any director’s fees.
PARTICULAR DISCLOSURES

Bonds

020 Bond

Albany Braithwaite Holdings Limited, an Associated Person of Director Mark Benseman, is currently the
holder of 600,000 first ranking bonds issued in a $1 million bond issue on 9 October 2014 (“020 Bond”).
The 020 Bond was due to mature on 31 September 2017, but the 020 Bondholders, including Albany
Braithwaite Holdings Limited, agreed among other things, to extend the maturity date to 30 September
2021.

030 Bond

Albany Braithwaite Holdings Limited is currently the holder of 150,000 second ranking bonds issued in a
$550,000 bond issued on 31 August 2016 (“030 Bond”). The 030 Bonds are due to mature on 30
September 2018. Two bondholders, one of whom is Albany Braithwaite Holdings Limited, will be repaid
in full on maturity date. The remaining two 030 Bondholders, holding 300,000 bonds, have agreed
among other things, to extend the maturity date for their 030 Bonds to 31 March 2019.
Director
2018 2017 2016
Cash Cash** Shares* Cash
Garry Bluett $50,000 $81,458 2,498,677 $29,166
Philip Luscombe $28,000 $44,667 1,294,037 $19,833
Andrew McDouall $28,000 $46,760 1,059,393 $24,833
Jeff Keenan nil nil 1,287,032 nil
Mark Benseman

$28,000 $31,208 nil $9,625
Total $134,000 $204,093 6,139,139 $83,457

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ALLIED FARMERS LIMITED ANNUAL REPORT 2018



General

Except to the extent described above, no Director has entered into any transactions with the Company
or its subsidiaries other than in the normal course of business, on the Company’s normal terms of trade,
and on an arms-length basis.

No Director issued a notice requesting to use Group information received in their capacity as a Director
which would not otherwise have been available to them.

During the year the Company paid premiums on contracts insuring directors and officers in respect of
liability and costs permitted to be insured against in accordance with Section 162 of the Companies Act
1993 and the Company’s constitution.

No new ordinary shares were issued during the financial year, and the Company no longer has any
share options on issue.

EMPLOYEE REMUNERATION
The number of employees whose remuneration and benefits were over $100,000 is within the specified
bands as follows:

Remuneration range 2017 2018

100,000 110,000 2 8
110,001 120,000 4 1
120,001 130,000 - 3
130,001 140,000 2 1
140,001 150,000 1 3
150,001 160,000 1 3
160,001 170,000 - -
170,001 180,000 2 1
180,001 190,000 1 -
190,001 200,000 3 -
200,001 210,000 - 1
210,001 220,000 - 3
220,001 230,000 - 1
230,001 240,000 - -
240,001 250,000 1 2
250,001 260,000 - -
260,001 270,000 - -
270,001 280,000 - -
280,001 290,000 - -
290,001 300,000 - -
300,001 310,000 - -
310.001 320,000 - 1
320,001 330,000 1 -
Total 18 28

The remuneration figures shown in the above table include all monetary remuneration actually paid, plus
the cost of all benefits provided, during the year. The table does not include independent contractors.
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018



SUBSTANTIAL PRODUCT HOLDERS


The following notices were given under the Financial Markets Conduct Act 2013 up to the date of this
Annual Report:

Holder Relevant Interest Date
Albany Braithwaite Holdings Limited 20,206,556 (12.48%) 5 April 2017
Deborah Lee Seerup as beneficial owner
via ASB Nominees as registered holder
11,850,005 (7.34%) 22 February 2018
Stockmans Holdings Limited 19,267,822 (12.104%) 4 December 2015
The total number of issued voting securities of Allied Farmers Limited as at 7 August 2018 was
161,505,350 ordinary shares. The ownership percentages referred to above are as disclosed in the
relevant notice, and may have changed as a result of the issue of further shares, or share transfers
below the threshold for filing a notice, subsequent to the date of the relevant disclosure.
SUBSIDIARY COMPANIES
Directors of subsidiary companies as at 30 June 2018 were as follows:

Subsidiaries of the Parent Principal Activity Directors
Allied Farmers Rural Limited Rural Services
GC Bluett, PC Luscombe, GA
McDouall, MW Benseman
ALF Nominees Limited Nominee company GC Bluett
Allied Farmers Investments Limited
Asset Management
Services
GC Bluett, PC Luscombe, GA
McDouall, MW Benseman

Allied Farmers (New Zealand) Limited Non-trading GC Bluett
Subsidiaries of Allied Farmers Investments Limited
Allied Farmers Property Holdings Limited Non-trading GC Bluett
QWF Holdings Limited Non-trading GC Bluett
Lifestyles of New Zealand Queenstown
Limited
Non-trading GC Bluett
LONZ 2008 Limited Non-trading GC Bluett
LONZ 2008 Holdings Limited Non-trading GC Bluett
Matarangi Beach Estates Limited* Non-trading GC Bluett
Clearwater Hotel 2004 Limited Non-trading GC Bluett
Subsidiaries of Allied Farmers Property Holdings Limited
UFL Lakeview Limited Non-trading GC Bluett
5M No 2 Limited Non-trading GC Bluett
Subsidiaries of Allied Farmers Rural Limited
NZ Farmers Livestock Limited Livestock Trading
PC Luscombe, GC Bluett, S Williams,
M W Benseman, OJ Carruthers
Subsidiaries of NZ Farmers Livestock Limited
Farmers Meat Export Limited
Meat Processing and
Trading
SKW Morrison, WB Sweeney, PC
Luscombe
NZ Farmers Livestock Finance Limited Rural Finance PC Luscombe, GC Bluett, S Williams
Redshaw Livestock Limited Livestock Trading
DA Freeman, AD Hiscox, MD
MacDonald, WB Sweeney
*Removed from Companies Office register on 1 August 2017
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


DONATIONS
The Company made no donations to any political party during the year.
SHAREHOLDER INFORMATION
The ordinary shares of Allied Farmers Limited are listed on the NZX Main Board. The NZX share code is
‘ALF’.

The shareholder information in the following disclosures has been taken from the Company’s share
register at 6 August 2018.

TWENTY LARGEST REGISTERED SHAREHOLDERS as at 6 August 2018

Rank Investor Name Total Units % Issued Capital
1 Albany Braithwaite Holdings Limited 19996556 12.38
2 Stockmans Holdings Limited 19267822 11.93
3 Deborah Lee Seerup 12000005 7.43
4 Donald Clifton Jacobs 6362327 3.94
5 Garry Charles Bluett 3089711 1.91
6 Ronald Alfred Brierley 3031591 1.88
7 Stuart David Hynes 2551600 1.58
8 Ross Phillip Drew 2500000 1.55
9 Maurice Duncan Priest 2000000 1.24
10 John Drakley Moore 1900068 1.18
11 Leh Soon Yong 1694282 1.05
12 Custodial Services Limited 1343445 0.83
13 Philip Charles Luscombe & Ainsley Jocelyn Luscombe 1295566 0.8
14 New Zealand Central Securities Depository Limited 1259019 0.78
15 James Field Seerup & Jeanette Elizabeth Seerup 1235750 0.77
16 Omaio Investments Limited 1196550 0.74
17 Peter`S Island Limited 1182193 0.73
18 Arcos Investments Limited 1160000 0.72
19 Lee Athol Wilson & Shirley Ann Wilson 1100000 0.68
19 Colin Stuart Loveday 1100000 0.68
20 Probatus Investments Limited 1085937 0.67

ANALYSIS OF SHAREHOLDING as at 6 August 2018
Range Holders Holders % Issued Capital Issued Capital %
1-1000 282 5.14 169908 0.11
1001-5000 4038 73.58 8086371 5.01
5001-10000 330 6.01 2392808 1.48
10001-50000 497 9.06 13004416 8.05
50001-100000 157 2.86 12321322 7.63
Greater than 100000 184 3.35 125530525 77.73
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


SHAREHOLDER ENQUIRIES
Shareholders should send changes of address, dividend queries, and instructions and shareholding
information requests to Link Market Services Limited, which acts as the Company’s share registrar.
These notifications and requests should be by signed letter.

ANNUAL MEETING OF SHAREHOLDERS

Allied Farmers Limited’s Annual Meeting of shareholders is proposed to be held in the TSB Hub,
Hawera, on Tuesday 27 November 2018 from 11am. A Notice of Annual Meeting and Proxy Form will be
circulated to shareholders prior to the meeting.

REGISTERED OFFICE
The registered office of Allied Farmers Limited is:

201 Broadway
Stratford 4332
PO Box 304
Stratford 4352
DIVIDENDS PAID
A fully imputed dividend of $0.002 per share (2017: nil) was paid to eligible shareholders on 19 January
2018.
NZX REGULATION WAIVERS
The Company has not sought or been granted any waivers in the 12 months preceding 30 June 2018.



11

ALLIED FARMERS LIMITED ANNUAL REPORT 2018



CORPORATE GOVERNANCE REPORT

The objective of the Board is to enhance shareholder value. The Board considers there is a strong link
between good corporate governance and the achievement of this objective.
The Board considers that its corporate governance framework complies with the 2017 NZX Corporate
Governance Code (NZSX Code), except as stated within this report. The exceptions arise because
aspects of the Code are either not relevant or appropriate for Allied Farmers given it is primarily a
holding company of shares in a majority owned subsidiary, NZ Farmers Livestock Limited.
The information in this report is current as at the date of release of this Annual Report and has been
approved by the Board of Allied Farmers.
The key corporate governance documents referred to in this report are available on Allied Farmers’
website at www.alliedfarmers.co.nz.
Allied Farmers is listed on the NZX’s Main Board and is subject to regulatory control and monitoring by
both the NZX and the Financial Markets Authority.
Principle 1 – Code of Ethical Behaviour
Directors should set high standards of ethical behaviour, model this behaviour and hold
management accountable for these standards being followed throughout the organisation.
Allied Farmers is committed to maintaining the highest ethical standards by Directors, staff, suppliers
and customers/clients. Allied Farmers has a Code of Ethics to guide executives, management and
employees in carrying out their duties and responsibilities. A copy of this is available on Allied Farmers’
website. The Code covers such matters as:
• Expected conduct;
• Confidentiality;
• Use of assets;
• Corporate social responsibility; and
• Acceptance of gifts

The Code of Ethics requires Directors and employees to promptly report material breaches of the Code.
In addition, Allied Farmers has adopted a Whistle Blowing Policy that sets out the processes by which
suspected serious wrongdoing can be reported, and the whistle blower is protected.
Allied Farmers has in place processes to enable all new and existing employees to be aware of and
understand the Code.
Allied Farmers has a Securities Trading Policy to explain expectations and requirements for dealing in
Allied Farmers securities, and to protect from the risk of breaching insider trading laws. A copy of this is
available on Allied Farmers’ website.
Details of Directors’ share dealings are in the Shareholder Information section of the 2018 Annual
Report
.
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


Principle 2 – Board Composition and Performance
To ensure an effective Board, there should be a balance of independence, skills, knowledge,
experience and perspectives.
The business and affairs of Allied Farmers are managed directly by the Board of Directors. The Board:
• establishes long-term goals and strategic plans to achieve those goals;
• reviews and adopts the annual budgets for financial performance and monitors results monthly;
• ensures preparation of the annual and half-yearly financial statements;
• manages risk by ensuring that Allied Farmers has implemented adequate systems of internal
controls together with appropriate monitoring of compliance activities; and
• works with management to create shareholder value.

Allied Farmers’ Board operates under a written Board Charter which sets out the structure of the Board;
the procedures for the nomination, resignation and removal of Directors; outlines the responsibilities and
roles of the Chairman and Directors; and identifies procedures to ensure that the Board meets regularly,
conducts its meetings in an efficient and effective manner and that each Director is fully empowered to
perform his or her duties as a Director of the Company and to fully participate in meetings of the Board.
A copy of the Charter is available on Allied Farmers’ website.
Management of Allied Farmers is undertaken by the executive team under the leadership of the Chief
Executive, through a set of delegated authorities.
Directors have direct access to and may rely upon Allied Farmers’ senior management and external
advisers. Directors have the right, with the approval of the Chairman to seek independent legal or
financial advice at the expense of Allied Farmers for the proper performance of their duties.
Board Composition and Appointment
The number of elected Directors and the procedure for their retirement and re-election at Annual
Shareholders’ Meetings are set out in the Constitution of the Company.
The Board reviews the criteria for selection of Directors to ensure the most appropriate balance of skills,
qualifications, experience and background to effectively govern Allied Farmers.
At each Annual Shareholders’ Meeting, one-third of the current Directors retire by rotation and are
eligible for re-election. Any Directors appointed since the previous annual meeting must also retire and
are eligible for election.
The Board currently comprises of four Directors: an independent non-executive Chairman, two
independent non-executive Directors, and one non-executive Director. The Chief Executive is not a
member of the Board.
The Board supports the separation of the roles of Chairman and CEO and the appointment of a non-
executive chairman.
In order for a director to be independent, the Board has determined that he or she must not be an
executive of Allied Farmers and must have no disqualifying relationships as defined by the NZX Listing
Rules.
Information on each Director is available on the Allied Farmers website. Director’s interests are disclosed
in the Shareholder Information section of the 2018 Annual Report.
In compliance with the new NZX Code, Allied Farmers will provide written agreements to any new
Directors appointed during and from FY2019.
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


The Company encourages all Directors to undertake appropriate training and education so that they may
best perform their duties. This includes attending presentations on changes in governance, legal and
regulatory frameworks; attending technical and professional development courses; and attending
presentations from industry experts and key advisers. In addition, updates are provided to the Board on
relevant industry and Company issues.
At appropriate times the Board considers individual and collective performance, together with the skill
sets, training and development and succession planning required to govern the business. An evaluation
of Board performance will be undertaken in FY2019.
Diversity
Allied Farmers recognises the value of diversity of thinking and skills. This can arise through several
different characteristics including but not limited to the following; gender, ethnic background, religion,
age, marital status, culture, disability, economic background, education, language, physical appearance
and sexual orientation. Different backgrounds, sector experience, communication styles, life-skills and
interpersonal skills are also considered of value in building diverse leadership teams.
Given that Allied Farmers only has two employees (being the Chief Executive Officer and the Chief
Financial Officer) and one contractor (being the Company Secretary), the Board has determined that the
compliance costs of adopting and reporting the outcomes of a formal Diversity and Inclusion Policy do
not outweigh any potential benefits of such a Policy, and therefore have decided to not adopt a formal
Diversity and Inclusion Policy. This will be reviewed if circumstances change.
As at 30 June 2018, females represented 0% (FY17: 0%) of Directors and Officers of Allied Farmers.
Officers are defined as being the Chief Executive Officer and specific direct reports of the CEO having
key functional responsibility.











Current Year Previous Year
Male
Female Male Female
Number of Directors 4 0 4 0
Percentage of Directors
100% 0% 100% 0%
Number of Officers
2 0 1 0
Percentage of Officers
100% 0% 100% 0%
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ALLIED FARMERS LIMITED ANNUAL REPORT 2018


Board Meetings and Attendance
The Board meets as often as it deems appropriate, including sessions to review the performance of the
business versus plans and to consider the strategic direction of Allied Farmers and its forward-looking
business plans. Video and/or phone conferences are also used as required.
The table below sets out Director attendance at Board and committee meetings during FY2018. In total,
there were 13 Board meetings and two Audit and Risk Management Committee meetings.

Board Audit and
Risk
Total number of meetings
13 2
Garry Bluett 13 2
Andrew McDouall 13 2
Philip Luscombe 13 2
Mark Benseman 13 2

Principle 3 – Committees
The Board should use committees where this will enhance its effectiveness in key areas, while
still retaining Board responsibility.
The Board has delegated a number of its responsibilities to the Audit and Risk Committee to assist in the
execution of the Board’s responsibilities.
The Audit and Risk Committee reviews and analyses policies and strategies that are within its terms of
reference. It examines proposals and, where appropriate, make recommendations to the full Board. The
Audit and Risk Committee does not take action or make decisions on behalf of the Board unless
specifically mandated by prior Board authority to do so.
The Audit and Risk Committee meets as required and has a Charter which is approved and reviewed by
the Board. A copy of the Audit and Risk Committee Charter is on the Allied Farmers website.
Minutes of each committee meeting are forwarded to all members of the Board, who are all entitled to
attend any committee meeting.
The Audit and Risk Committee is empowered to seek any information it requires from employees in
pursuing its duties and to obtain independent legal or other professional advice.
The membership and performance of the Audit and Risk Committee is to be evaluated as part of the
Board performance evaluation, to be undertaken in FY2019.
Due to the modest size of Allied Farmers, the desire to contain compliance costs, the fact that Allied
Farmers has only two senior executive (being the Chief Executive and Chief Financial Officer), and
neither of them are members of the Board of Allied Farmers, the Board has determined that a separate
Remuneration and/or Nominations Committee is not required. The Board considers that the purpose and
roles performed by a separate Remunerations and/or Nomination Committee can be appropriately
performed by the full Board without compromising the probity of its decision making. The Board has
determined to review this decision from time to time, and in particular has agreed to form a
Remuneration Committee and/or Nomination Committee if the Board considers that, for reasons such as
ensuring independent and non-conflicted decision making, such a committee is necessary.
15

ALLIED FARMERS LIMITED ANNUAL REPORT 2018


From time to time, other special purpose committees may be formed to review and monitor specific
projects with senior management.
In the case of a takeover offer, Allied Farmers will form an Independent Takeover Committee to oversee
disclosure and response and engage expert legal and financial advisors to provide advice on procedure.
Formal Takeover Response protocols have not yet been adopted.
Audit and Risk Management Committee
The Audit and Risk Committee provides a forum for the effective communication between the Board and
external auditors. The Committee reviews the annual and half-yearly financial statements prior to their
approval by the Board, the effectiveness of internal control and management information systems and
the efficiency and effectiveness of the audit function.
The Committee must be comprised solely of Directors of Allied Farmers, have a minimum of three
members, have a majority of independent Directors and have at least one Director with an accounting or
financial background. The makeup of the current members of this committee complies with this
recommendation.
Members as at 30 June 2018 were Garry Bluett (Chair), Andrew McDouall and Philip Luscombe. The
Audit and Risk Committee Chair, Garry Bluett, is also the Chair of the Board. The Board considers that,
whilst Mr Bluett is also Chairman of the Board, he is the most suitably qualified and experienced director
to Chair the Audit and Risk Committee. Furthermore Mr Bluett is both an independent and non-executive
Chairman. Therefore, on balance, the Board considers this appointment to be in the best interests of the
Company.
Management may attend meetings only at the invitation of the Committee and the Committee routinely
has committee-only time with the external auditors without management present.

Principle 4 – Reporting and Disclosure
The Board should demand integrity in financial and non-financial reporting, and in the timeliness
and balance of corporate disclosures.
Allied Farmers’ Directors are committed to keeping investors and the market informed of all material
information about the Company and its performance, in a timely manner. Allied Farmers has adopted a
Continuous Disclosure Policy to ensure that material information is identified, reported, assessed and,
where required, disclosed to the market in a timely manner.
In addition to all information required by law, Allied Farmers also seeks to provide sufficient meaningful
information to ensure stakeholders and investors are well informed, including financial and non-financial
information.
Financial Information
Senior Management is responsible for implementing and maintaining appropriate accounting and
financial reporting principles, policies, and internal controls designed to ensure compliance with
accounting standards and applicable laws and regulations.
The Board’s Audit and Risk Management Committee oversees the quality and integrity of external
financial reporting, including the accuracy, completeness, balance and timeliness of financial
statements. It reviews Allied Farmers’ full and half year financial statements and makes
recommendations to the Board concerning accounting policies, areas of judgement, compliance with
accounting standards, stock exchange and legal requirements, and the results of the external audit
.
16

ALLIED FARMERS LIMITED ANNUAL REPORT 2018


For the financial year ended 30 June 2018, the Directors believe that proper accounting records have
been kept that enable the determination of the Company’s financial position with reasonable accuracy,
and facilitate compliance of the financial statements with the Financial Markets Conduct Act 2013. The
Chief Executive Officer and Chief Financial Officer have confirmed in writing to the Board that Allied
Farmers’ external financial reports present a true and fair view in all material aspects.
Allied Farmers’ full and half year financial statements are available on the Company’s website.
Non-financial information
The Board recognises the importance of non-financial disclosure. Whilst the Company has a governance
framework, given its small size the Board has decided not to adopt a formal environmental code. NZ
Farmers Livestock does however invest in social responsibility initiatives that support staff, customers
and the communities in which it operates.
Allied Farmers discusses its strategic objectives and its progress against these in the Chair and CEO’s
commentary in shareholder reports and at the Annual Shareholders Meeting. Allied Farmers supports
NZ Farmers Livestock’s commitment to using its resources responsibly and identification of opportunities
to reduce any negative environmental risk or impact from business operations, products and services.
NZ Farmers Livestock is also committed to providing fair and responsible products and services that
includes adherence to the Responsible Lending Code, the Responsible Credit-Related Insurance Code,
Insurance (Prudential Supervision) Act 2010 and various other Acts.
Principle 5 – Remuneration
The remuneration of Directors and executives should be transparent, fair and reasonable.
Remuneration of Directors and senior executives is the Board’s responsibility. In recent years, Allied
Farmers has only appointed one new senior executive – the Chief Financial Officer in March 2018. The
Board takes account of external market factors and internal factors in determining the remuneration of
senior executives. Given that Allied Farmers has only two senior executives, it has not considered it
necessary to adopt a formal Remuneration Policy, but will review this in FY19.
Director Remuneration
The total remuneration pool available for Directors has been fixed by shareholders at a maximum of
$332,000 per annum for all non-executive Directors. The Board determines the level of remuneration
paid to Directors from that pool. Directors also receive reimbursement for reasonable travelling,
accommodation and other expenses incurred in the course of performing their duties.
Allied Farmers may appoint additional non-executive directors in due course. The Directors’ potential fee
pool includes future directors’ fees and has been fixed.
Any proposed increases in non-executive Director fees and remuneration will be put to shareholders for
approval. If independent advice is sought by the Board, it will be disclosed to shareholders as part of the
approval process.
17

ALLIED FARMERS LIMITED ANNUAL REPORT 2018


Board Role Approved Remuneration
Directors’ fees are currently allocated by the Directors per annum as follows:
• Chairman appointed prior to 2018 - $50,000 plus retirement allowance after seven years of
service;
• Other Directors appointed prior to 1 October 2015 - $28,000 plus retirement allowance after
seven years of service; and
• Other Directors appointed after 1 October 2015 - $30,000 with no retirement allowance.

Details of individual Directors’ remuneration are detailed in the Shareholder Information section of the
2018 Annual Report.
Executive Remuneration
In general, executive remuneration comprises a fixed base salary and an at-risk short-term incentive
payable annually. At-risk incentives are paid against targets agreed with executives and are based on
financial measures including earnings targets and progress against objectives related to the strategic
plan and other personal objectives.
CEO Remuneration
The review and approval of the CEO’s remuneration is the responsibility of the Board.
The CEO’s remuneration comprises a fixed base salary, fringe benefits and an at-risk short-term
incentive payable annually. At-risk incentives are paid against targets agreed with the CEO, and are
based on financial measures including earnings targets and progress against objectives related to the
strategic plan and other personal objectives.

Salary Benefits Performance
- Short term
Incentive
Staff
Profit
Share
Total
Remuneration
FY18 $250,000 $15,000 $43,332.00
being 72% of
maximum
achievable for
FY17
$451.02 $308,788.02
FY17 $250,000 $15,000 $55,000 being
92% of
maximum
achievable for
FY16
$202.24 $320,202.24

18

ALLIED FARMERS LIMITED ANNUAL REPORT 2018


Principle 6 – Risk Management
Directors should have a sound understanding of the material risks faced by the issuer and how
to manage them. The Board should regularly verify that the issuer has appropriate processes
that identify and manage potential and material risks.
The Board has overall responsibility for the Company’s system of risk management and internal control.
The Board delegates day to date management of the risk to the Chief Executive Officer. The Audit and
Risk Management Committee provides an additional and more specialised oversight of Company risks in
addition to the oversight provided by the Board. The Audit and Risk Management Committee’s Charter
details the specific responsibilities of the Committee in regard to risk assurance.
The executive team and senior management are required to regularly identify the major risks affecting
the business and develop structures, practices and processes to manage and monitor these risks.
The Board is satisfied that major risks are reviewed and intends to implement a more detailed risk
management framework in FY2019.
Allied Farmers maintains insurance policies that it considers adequate to meet its insurable risks.
More details of Allied Farmers’ financial risk management are available in the FY18 Financial
Statements.
Health and Safety
Allied Farmers is a holding company and does not undertake any operations in the context of a health
and safety environment. Allied Farmers’ majority owned subsidiary, NZ Farmers Livestock Limited, and
its wholly owned subsidiaries are operational businesses, and the Board of Directors of NZ Farmers
Livestock is responsible for ensuring that the systems used to identify and manage health and safety
risks are fit for purpose, effectively implemented, regularly reviewed and continuously improved. The NZ
Farmers Livestock Board recognises that effective management of health and safety is essential for the
operation of a successful business, and its intent is to prevent harm and promote wellbeing for
employees, contractors and customers.
NZ Farmers Livestock has adopted a Health and Safety Policy and a Health and Safety Handbook and
Policy Manual, continues to drive increasing focus on health and safety objectives, and holds regular
health and safety meetings for each saleyard at which it operates. Minutes of these meetings, health and
safety audits and all significant injuries are reported to the NZ Farmers Livestock Board.

Principle 7 – Auditors
The Board should ensure the quality and independence of the external audit process.
The Allied Farmers Board is committed to ensuring audit independence, both in fact and appearance, so
that Allied Farmers’ external financial reporting is viewed as being highly objective and without bias.
The Audit and Risk Management Committee (ARMC) reviews the quality and cost of the audit
undertaken by the Company’s external auditors and provides a formal channel of communication
between the Board, senior management and external auditors.
19

ALLIED FARMERS LIMITED ANNUAL REPORT 2018


The ARMC approves the auditor’s terms of engagement, audit partner rotation (at least every five years)
and audit fee, and reviews and provides feedback in respect of the annual audit plan. The Committee
periodically has time with the external auditor without management present. The ARMC also assesses
the auditor’s independence on an annual basis.
An External Auditor Independence Policy has been adopted and sets out the services that may or may
not be performed by the external auditor.
For the financial year ended 30 June 2018, PricewaterhouseCoopers (PWC) was the external auditor for
Allied Farmers Limited. PWC was reappointed under the Companies Act 1993 at the 2017 Annual
Meeting. The last audit partner rotation was in 2015.
All audit work at Allied Farmers is fully separated from non-audit services, to ensure that appropriate
independence is maintained. No non-audit services were provided by PWC in FY2018.The amount of
fees paid to PWC for audit work in FY2018 are identified in note 3 of the consolidated financial
statements.
PWC has provided the ARMC with written confirmation that, in its view, it was able to operate
independently during the year.
Given the cost, PWC has not attended recent Annual Shareholders’ Meeting, but are available to do so if
requested. PWC are available by telephone during the meeting to answer any questions if required. In
recent years, there have not been any questions asked at the Annual Shareholders’ Meeting that have
not satisfactorily being answered or addressed by management or the Chairman. If circumstances
changed (for example, a complex or controversial matter was to be considered or presented to the
meeting) the PWC lead partner would be required to attend the meeting.
Allied Farmers has a number of internal controls overseen by the ARMC and/or the Board of either Allied
Farmers or NZ Farmers Livestock (as appropriate). These include controls for computerised information
systems, cyber risk and information security, business continuity management, insurance, health and
safety, conflicts of interest, and prevention and identification of fraud. The Company does not have an
internal audit function.
Principle 8 – Shareholder Rights and Relations
The Board should respect the rights of shareholders and foster constructive relationships with
shareholders that encourage them to engage with the issuer.
The Board is committed to open and regular dialogue and engagement with shareholders. Allied
Farmers seeks to ensure that investors understand its activities by communicating effectively with them
and giving them access to clear and balanced information.
Allied Farmers has a calendar of communications and events for shareholders, including but not limited
to:
• Annual and Interim Reports
• Market announcements
• Annual Shareholders’ Meeting
• Easy access to information through the Allied Farmers website www.alliedfarmers.co.nz
• Access to management and the Board via the “Contact Us” facility on the Allied Farmers
website

Shareholders are actively encouraged to attend the Annual Shareholders’ Meeting and may raise
matters for discussion at this event, and may vote on major decisions that affect Allied Farmers. Voting
is by poll, upholding the ‘one share, one vote’ philosophy.

20

ALLIED FARMERS LIMITED ANNUAL REPORT 2018


In accordance with the Companies Act 1993, Allied Farmers’ Constitution and the NZX Main Board
Listing Rules, Allied Farmers refers major decisions that may change the nature of the Company to
shareholders for approval.
All shareholders are given the option to elect to receive electronic communications from the Company.

Exercise of disciplinary powers
No disciplinary action has been taken by either the NZX or the FMA against the Company during the
financial year ended 30 June 2018.
21

PricewaterhouseCoopers, PwC Centre, 10 Waterloo Quay, PO Box 243, Wellington 6140, New Zealand
T: +64 4 462 7000, pwc.co.nz
Independent auditor’s report
to the shareholders of Allied Farmers Limited
The consolidated financial statements comprise:
•the consolidated balance sheet as at 30 June 2018;
•the consolidated statement of profit or loss and other comprehensive income for the year then
ended;
•the consolidated statement of changes in equity for the year then ended;
•the consolidated statement of cash flows for the year then ended;
•the statement of accounting policies; and
•the notes to the consolidated financial statements.
Our opinion
In our opinion, the consolidated financial statements of Allied Farmers Limited (the Company),
including its subsidiaries (the Group), present fairly, in all material respects, the financial position of
the Group as at 30 June 2018, its financial performance and its cash flows for the year then ended in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS)
and International Financial Reporting Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
NZ) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of
our report.
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 (PES 1) 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.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
49

PwC50
Our audit approach
Overview
An audit is designed to obtain reasonable assurance whether the consolidated
financial statements are free from material misstatement.
Overall group materiality: $117,900, which represents approximately 5% of profit
before tax.
We chose profit before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark.
We have determined that there is one key audit matter: the assessment of
goodwill for impairment.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the consolidated financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the consolidated financial
statements and our application of materiality. As in all of our audits, we also addressed the risk of
management override of internal controls including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industries in which the Group operates.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current year. We have one key audit matter:
the assessment of goodwill for impairment. This matter was addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on this matter.

PwC51
Key audit matterHow our audit addressed the key audit matter
Assessment of goodwill for impairment
As disclosed in Note 12 to the consolidated
financial statements, the Group has $742,000
of goodwill, comprising $100,000 relating to
NZ Farmers Livestock Limited (NZFL) and
$642,000 relating to Redshaw Livestock
Limited (Redshaw).
Management is required to undertake an
impairment assessment of goodwill at least
annually. No impairment charge has been
recorded against goodwill in the current
financial year.
The impairment assessment of goodwill
involves valuing the cash generating unit(s)
(CGUs), including goodwill. Management has
identified two CGUs: NZFL and Redshaw.
While judgement underpins any impairment
assessment, the Redshaw CGU is the only
CGU requiring significant judgement due to
the nature of the assessment and the
significant value attributed to goodwill.
Therefore, the goodwill impairment
assessment for Redshaw was considered a key
audit matter.
Management has prepared a goodwill
impairment assessment using a discounted
cash flow model to determine a value in use
for the Redshaw CGU. The valuation requires
the use of judgements and estimates in
forecasting future cash flows including
revenue growth rates, the discount rate and
the terminal growth rate.
Management has assessed that the goodwill is
able to be supported by the budgeted cash
flows over a five year forecast period.
Our audit procedures included the following:
We understood and evaluated the Group’s processes
and controls relating to the goodwill impairment
assessment.
We obtained management’s valuation of the relevant
CGU’s and undertook the following:
oTested the mathematical accuracy of the
goodwill impairment model;
oCompared forecast results to the Board-
approved budget;
oChallenged management on key assumptions
including forecast revenue growth rates and
the terminal value growth rate;
oUsed an in-house valuation expert to assess the
reasonableness of the discount rate; and
oAssessed management’s forecasting accuracy
by comparing historical forecasts to actual
results.
We also assessed whether management’s disclosures
relating to the impairment assessment, including
disclosures of the sensitivities of key assumptions, were
consistent with the requirements of accounting
standards.
The audit procedures performed responded to the
heightened risk surrounding the judgements and estimates
made by management in reaching their conclusion that there
was no impairment of the carrying value of goodwill.
Information other than the consolidated financial statements and auditor’s report
The Directors are responsible for the annual report. Our opinion on the consolidated financial
statements does not cover the other information included in the annual report and we do not, express
any form of assurance conclusion on the other information.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report
in this regard.

PwC52
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group 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 objectives are 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 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 and ISAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and 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 the consolidated financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-
report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an 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 Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Christopher
Ussher.
For and on behalf of:
Chartered AccountantsWellington
29 August 2018

Auditors
PricewaterhouseCoopers
PWC Centre
10 Waterloo Quay
P.O Box 243
Wellington 6140
Share Registrar
Link Market Services Limited
PO Box 91976
Auckland 1142
Shareholder Enquiries
Link Market Services Limited
Wellington 6012Ph: 09 375 5998
Fax: 09 375 5990
Email: Lmsenquiries@linkmarketservices.com
Stratford 4352
Ph: 06 765 6199
Stratford 4332
Postal Address of the Company
PO Box 304
Wellington 6011
Registered Office of the Company
201 Broadway
Te Aro,Auckland 1142
Philip C Luscombe BAgSci (Hons)
199 Palmer Road
RD 28
Hawera 4678
G Andrew McDouall BCA. Dip NZX
5 Fancourt Street
Karori
Mark Bensemen
2b/3 Clyde Quay Wharf,PO Box 91976
North Shore City 0740
COMPANY DIRECTORY
Directors of the Company
Garry C Bluett BMS, CA (Chairman)
8 St Leonards Road
Takapuna

---

Allied Farmers Limited

Results for announcement to the market
(Audited)
Reporting Period 12 months to 30 June 2018
Previous Reporting Period 12 months to 30 June 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ
18,683
6.88% up
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
$NZ
1,535
1.1% down
Net profit (loss) attributable
to security holders.
$NZ
1,535
1.1% down

Interim/Final Dividend Amount per security Imputed amount per security
Not proposed -
$N/A

Record Date Not Applicable
Dividend Payment Date Not Applicable


Comments:
(see below)

Net Tangible Assets per
security
$NZ 0.01 dollars $NZ 0.01 dollars

.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Refer to the Statement of Accounting Policies in the financial statements included in the announcement