PGW Trading update

18 December 2018

PGG Wrightson flags tough trading for Seeds
in South America while its sale remains on track


PGG Wrightson Limited (PGW)* Chief Executive Ian Glasson advised today that continued difficult trading
conditions in South America are adversely impacting its Seed and Grain business performance leading to the
acquisition of the balance of its Uruguayan retail joint venture, AgroCentro. Meanwhile, the sale of the Seed
and Grain business to DLF Seeds remains on track.

Challenging climatic conditions in Uruguay have impacted crop yields in recent seasons causing liquidity
issues in the agricultural sector as credit pressures have tightened for farmers. This has negatively impacted
AgroCentro. To safeguard the Uruguayan business, PGW has agreed to acquire the remaining 50% of the
retail joint venture and hence consolidate this business.

Mr Glasson noted that “the challenges facing AgroCentro will reduce the Seed and Grain Operating EBITDA**
and its net profit after tax (NPAT) in comparison to the half year ending 31 December 2017. This will cause
the Seed and Grain Operating EBITDA** to be down significantly on the same period last year and create a
loss at an NPAT level. The AgroCentro acquisition is expected to complete by late January 2019.”

“However, as the DLF Seeds transaction is based on the value of the business as at 30 June 2018, this impact
in South America will not reduce the purchase price for the Seed and Grain business. PGW remains confident
that the sale to DLF Seeds will receive the necessary regulatory and other approvals in the new year.”

On completion of the sale of the Seed and Grain business PGW expects to record a capital gain of circa
NZD$120 million flowing through to NPAT.

Mr Glasson noted that “PGW’s Rural Services business (Agency and Retail and Water) has been trading
solidly, although slightly behind last year due to a later start to spring sales and a delayed recovery following
recent heavy rainfall across a large portion of New Zealand. Once we end the first half of the financial year
we will be able to form a clearer picture of these impacts on the full year earnings.”

PGW expects to be in a position to update guidance when announcing its half-year result on 27 February 2019.


Ends


For all media enquiries please contact
Linda Chalmers
Group Communications and Brand Manager
PGG Wrightson Ltd
Mobile: +64 27 405 3241



*All references to PGG Wrightson Limited or the Group refer to the Company, its subsidiaries and interests in associates and jointly
controlled entities.

**Operating EBITDA: Earnings before net interest and finance costs, income tax, depreciation, amortisation, the results from
discontinued operations, fair value adjustments and non-operating items.

PGW has used non-GAAP profit measures when discussing financial performance in this document. For a comprehensive discussion
on the use of non-GAAP profit measures, please refer to the policy “Non-GAAP Accounting Information” available on our website
(www.pggwrightson.co.nz).