HLG Full Year Result for the period ending 1 August 2018

New Zealand Stock Exchange Listing Rules
Disclosure Full Year Report


For the year ending 1 August 2018



Contents

Press Release
Appendix 1
Appendix 7
Audited Financial Statements
Audit Report

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HALLENSTEIN GLASSON HOLDINGS LIMITED
Results for announcement to the market

Reporting Period 12 months to 1 August 2018
Previous Reporting
Period
12 months to 1 August 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 277,642 +16.2%
Profit (loss) from
ordinary activities after
tax attributable to
security holder
$NZ 27,361 +58.4%
Net profit (loss)
attributable to security
holders
$NZ 27,361 +58.4%

Final Dividend Amount per security Imputed amount per
security
$NZ 0.24 $NZ 0.09333 cents

Record Date 10 December 2018
Dividend Payment Date 17 December 2018

Comments: A brief Please refer to the Group CEO’s Report (attached)


Net Tangible Assets per
Ordinary Share
At 1 August 2018 At 1 August 2017
$NZ 1.14 $NZ 0.97

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Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
P
whether:
InterimYear
P
SpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
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If unknown, contact NZX
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be issued following eventEntitlement
1 for 2 for
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Payable or Exercise Date
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provide an
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OR explanation
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Amount per securityPayment
(does not include any excluded income)
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(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
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(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
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Interest Payable, Exercise Date,
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Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
10 December, 201817 December, 2018
$$0.016667$0.093333
$
NZ DOLLARS$0.042353
$14,315,775
Date Payable
17 December, 2018
Enter N/A if not
applicable
NZHLGE 0001S4
In dollars and cents
Retained Earnings
$0.240
021 528 18409 306 252328092018
Ordinary Shares
EMAIL: announce@nzx.com
Notice of event affecting securities
1
HALLENSTEIN GLASSON HOLDINGS LIMITED
Stuart DuncanDirector's Resolution

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HALLENSTEIN GLASSON HOLDINGS LIMITED
RESULTS FOR FULL YEAR ENDED 1 AUGUST 2018
The company advises that Group sales for the 12 months to 1 August 2018 were $277.64 million, an
increase of 16.2% over the corresponding period last year ($239.00 million). The audited net profit after
tax was $27.36 million, an increase of 58.4% over the corresponding period last year ($17.27 million).
The 2017/18 financial year has continued to build on the success of the previous year. The buying
strategy, investment in digital and the improvements in customer service and experience that were
implemented in 2017 have supported sales and margin growth. Combined with tighter cost control, this
has in turn led to significant net profit growth. Whilst the trading environments remain tough in both
New Zealand and Australia, our brands have responded and adapted to these conditions to deliver the
strong result.
Segment Results
Glassons New Zealand
Sales for the year were $96.73 million, an increase of 8.1% on the prior year. Key to the performance over
the last twelve months has been our focus on fashion, our speed to market and our customer service.
Significant investment was made in digital throughout the year, improving customer engagement with
our website, social media platforms as well as in our stores.
During the year, we renovated the Queenstown and Queensgate stores to our new concept design, and
we closed one underperforming store in Henderson.
Planned investment is proceeding in New Zealand for the current financial year. We have already
refurbished our Dunedin Store and have a number of additional store upgrades scheduled.
Glassons Australia
Sales for the year were $78.42 million, an increase of 56.7% on the prior year. Again, our focus on
fashion, speed to market, customer service and our investment in digital has driven sales in what remains
an especially challenging retail market.
During the year two new stores, Melbourne Central and Charlestown were opened, and a further two
stores, Warringah and Chermside, were refurbished into our new concept.
Planned investment is proceeding in Australia. We have refurbished three stores in the current season in
Bondi, Highpoint and Parramatta with additional refurbishments scheduled in the short term. There are
also additional store openings planned in The Glen and Liverpool for later this year with additional stores
under consideration.
Hallenstein Brothers
Sales for the year were $96.89 million (including Australia), an increase of 6.4% on the prior year.
Hallenstein Brothers continues to build on its established market leading position in New Zealand. The
three stores in Australia have performed steadily and we remain positive about the opportunity that
exists for the brand in that market. Investment has continued in digital to help drive sales and improve
customer engagement.
During the year, the Queenstown store was refurbished to new concept and two small underperforming
non-strategic stores were closed.
Further investment in stores is planned for the current financial year as well as an extension to the
Distribution Centre to accommodate the growth in online sales.

Storm
The Storm business assets were sold on 30
th
April 2018 to Blackstar Holdings Limited. The Storm retail
stores are no longer part of the Hallenstein Glasson Group.
E-Commerce
As a result of the company’s ongoing investment in digital, online sales growth has improved at a
significantly greater rate than bricks and mortar stores. During the last financial year, online sales growth
was 63.6% and now represents 12.8% of Group turnover. We will continue to invest in technology and
resources to build momentum in this strategic area of the business into the future.
Dividend
The Directors have declared a final dividend of 24 cents per share (fully imputed) to be paid on 17th
December 2018. Together with the interim dividend of 20 cents per share that was paid on 13th April
2018, the full year dividend is 44 cents per share. This increase in dividend payment comes as a result of
the company’s strong balance sheet, well controlled inventories and the current trading patterns.
Future Outlook
The first eight weeks of the new financial year have seen sales grow +7.2% on the prior year. The Group
continues to improve and build on its buying strategies, speed to market, and customer service. Strategic
investment continues in digital, as well as in new and refurbished stores. Customers have reacted
positively to new season stock and web sales continue to grow. The Group is focused on delivering a
strong performance going into Christmas trading.
An update will be provided at the annual meeting of shareholders in December 2018.


Mark Goddard
Group CEO
+64 21 194 7035

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PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent auditor’s report
To the shareholders of Hallenstein Glasson Holdings Limited
The financial statements comprise:
the statement of financial position as at 1 August 2018;
the statement of comprehensive income for the year then ended;
the statement of changes in equity for the year then ended;
the statement of cash flows for the year then ended; and
the notes to the financial statements, which include significant accounting policies.
Our opinion
In our opinion, the financial statements of Hallenstein Glasson Holdings Limited (the Company),
including its subsidiaries (the Group), present fairly, in all material respects, the financial position of
the Group as at 1 August 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 theAuditor’s responsibilities for the audit of the financial statementssection 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.
Our firm carried out other services for the Group in the areas of tax advisory and tax compliance
services. The provision of these other services has not impaired our independence as auditor of the
Group.

PwC
Our audit approach
Overview
An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.
Overall Group materiality: $1,903,500, which represents 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 agreed with the Audit and Risk Committee that we would report to
them misstatements identified during our audit above $100,000 as well as
misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
We have determined that there is one key audit matter:
Inventory Valuation
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 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 financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the 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 financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
Our Group audit scope focused on the major operating locations. In aggregate, the locations selected
as part of our audit scoping contributed 95% of the Group’s Revenue and 99% of the Group’s profit
before tax.
Audits of each major operating location are performed by PwC New Zealand at a materiality level
calculated by reference to a proportion of Group materiality appropriate to the relative scale of the
operations concerned. The remaining operations were not considered significant to the Group and
were subject to other procedures including analytical procedures.

PwC
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current year. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key audit matterHow our audit addressed the key audit matter
Inventory Valuation
As at 1 August 2018, the Group held $20.9
million of inventories. Given the size of the
inventory balance relative to the total
assets of the Group and the estimates and
judgements described below, the valuation
of inventory required significant audit
attention.
As disclosed in Note 3.2, inventories are
held at the lower of cost and net realisable
value determined using the weighted
average cost method. At year end, the
valuation of inventory is reviewed by
management and the cost of inventory is
reduced where inventory is forecast to be
sold below cost.
The determination of whether inventory
will be realised for a value less than cost
requires management to exercise
judgement and apply assumptions.
Management undertake the following
procedures for determining the level of
write down required:
Use inventory ageing reports together
with historical trends to estimate the
likely future saleability of slow moving
and older inventory lines;
For inventory aged greater than one
year, management apply a percentage
based write down to inventory. The
percentages are derived from
historical levels of write down; and
Perform a line-by-line analysis of
remaining inventory to ensure it is
stated at the lower of cost and net
realisable value and a specific write
down is recognised if required.
We have performed the following procedures over the
valuation of inventory:
For a sample of inventory items, re-performed the
weighted average cost calculation and compared
the weighted average cost to the last purchase
invoices;
We tested that the ageing report used by
management correctly aged inventory items by
agreeing a sample of aged inventory items to the
last recorded invoice;
On a sample basis we tested the net realisable
value of inventory lines to recent selling prices;
We assessed the percentage write down applied to
older inventory with reference to historic inventory
write downs and recoveries on slow moving
inventory;
We re-performed the calculation of the inventory
write down; and
We also made enquires of management, including
those outside of the finance function, and
considered the results of our testing above to
determine whether any specific write downs were
required.
From the procedures performed we have no matters to
report.

PwC
Information other than the financial statements and auditor’s report
The Directors are responsible for the annual report. Our opinion on the financial statements does not
cover the other information included in the annual report and we do not, and will not express any form
of assurance conclusion on the other information. At the time of our audit, there was no other
information available to us.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the 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.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the 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 financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the 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 financial statements
Our objectives are to obtain reasonable assurance about whether the 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 financial statements.
A further description of our responsibilities for the audit of the 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.

PwC
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 Keren Blakey.
For and on behalf of:
Chartered Accountants
28 September 2018
Auckland