DGL – Interim Results to 31 Dec 2018

DELEGAT GROUP LIMITED
Results for announcement to the market
Reporting Period 6 months to 31 December 2018
Previous Reporting Period 6 months to 31 December 2017

Amount (000s) Percentage change
Revenue from ordinary activities $144,339 +13%
Operating Profit from ordinary
activities after tax (Operating
NPAT)
$31,379 +17%
Operating Profit from ordinary
activities before interest, tax and
depreciation (Operating
EBITDA)
$57,524 +13%
Reported Profit from ordinary
activities after tax attributable to
shareholders (Reported NPAT)
$25,310 +30 %
Net profit attributable to
shareholders
$25,310 +30 %

Audit The financial statements attached to this report have not been
audited.

Comments Refer to the Executive Chairman’s Report appended.
The financial statements for the 6 months to 31 December 2017
have been restated following the adoption of “NZ IFRS 15: Revenue
from Contracts with Customers” on 1 July 2018.

Interim Dividend Cents per share Cents per share (imputed)
Not Applicable Not Applicable

Net Tangible Assets per share
Current Year Previous corresponding year
Net Tangible Assets per share $3.49 $3.12

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DELEGAT GROUP LIMITED INTERIM REPORT 2019
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IMPACT MAGAZINE NEW YORK
‘STAR OF THE INDUSTRY’

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Executive Chairman’s Report
Statement of Financial Performance
Statement of Other Comprehensive Income
Statement of Changes in Equity
Statement of Financial Position
Statement of Cash Flows
Notes to the Financial Statements
Directory
CONTENTS
IMPACT’S BLUE CHIP BRANDS represent the stars of the
industry, saluting the market’s best-performing major players over
the long term. Highlighting the blockbuster brands that have shown
consistent growth amid increasingly competitive conditions, the Blue
Chip Brands are nothing less than the stars of the drinks industry. To
qualify as Blue Chip Brands, winners must record at least 10 straight
years of volume increases or have an average annual compound
growth rate of at least 1.5% from 2007-2017 while recording increases
in at least eight of those 10 years.
1

PERFORMANCE HIGHLIGHTS
Record global case sales of 1,576,000.
13% sales growth in key North America region.
New distribution listing with a major UK independent co-operative
has contributed to 31% growth in the UK, Ireland and Europe region.
Record Operating NPAT of $31.4 million.
1
Capital investment of $18.5 million in growth assets including
vineyard development and the Hawke’s Bay and Marlborough
wineries, funded by operating cashflow.
Oyster Bay received the ‘Blue Chip Brand’ title by New York’s highly
regarded Impact Magazine.
Oyster Bay Sparkling Cuvée Rosé received a Blue Gold Medal at the
Sydney International Wine Competition 2019.
1. Operating Performance is a non-GAAP measure and as such does not have a standardised meaning prescribed by GAAP. It may therefore not be comparable to non-GAAP
measures presented by other entities.
“Delegat achieved record
Operating NPAT in the first half
of the 2019 financial year.”

JIM DELEGAT
EXECUTIVE CHAIRMAN
EXECUTIVE CHAIRMAN’S REPORT
On behalf of the Board of Directors of Delegat Group Limited, I am pleased to present its operating
and financial results for the six months ended 31 December 2018.
DELEGAT INTERIM REPORT 2019 EXECUTIVE CHAIRMAN’S REPORT
2

The Group presents its financial statements in accordance with the New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS).
To provide further insight into the Group’s underlying operational performance, the Group has also
included in this report an Operating Performance Report. This Operating Performance Report excludes
the impact of fair value adjustments required under NZ IFRS for grapes and derivative instruments. As
a fully integrated winemaking and sales operation, Operating Profit includes the fair value adjustment
in respect of grapes when packaged wine is sold rather than on harvest of the grapes, and the fair
value adjustment on derivative instruments when these foreign exchange contracts and interest rate
swaps are realised.
The Group has included a reconciliation of Operating Profit to Reported Profit which eliminates from
each line in the Statement of Financial Performance the impact of these fair value adjustments.
2
OPERATING PERFORMANCE
A record Operating NPAT of $31.4 million was generated compared to $26.9 million for the same
period the previous year. Operating EBIT of $49.8 million is $6.4 million higher than for the same
period the previous year (refer to table 1).
Delegat achieved Operating Revenue of $143.0 million on global case sales of 1,576,000 in the six month
period. Revenue is up $15.4 million on the same period last year due to the 14% increase in global case
sales and the favourable impact of foreign exchange rate changes.
2. Operating Performance is a non-GAAP measure and as such does not have a standardised meaning prescribed by GAAP. It may therefore not be comparable to non-GAAP
measures presented by other entities.
*The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with
Customers on 1 July 2018. Refer to Note 1 of the financial statements.
DELEGAT INTERIM REPORT 2019 EXECUTIVE CHAIRMAN’S REPORT

Dec 2018 Dec 2017 % change
Actual Actual vs 2017
NZ$ millions Restated*
Operating Revenue
1
143.0 127.6 12%
Operating Gross Profit
2
78.3 70.7 11%
Operating Gross Margin 55% 55%
Operating Expenses
3
(28.5) (27.3) -4%
Operating EBIT
4
49.8 43.4 15%
Operating EBIT % of Revenue 35% 34%
Interest and Tax (18.4) (16.5) -12%
Operating NPAT
4
31.4 26.9 17%
Operating NPAT % of Revenue 22% 21%
Operating EBITDA
4
57.5 50.9 13%
Operating EBITDA % of Revenue 40% 40%
Notes:
1. Operating Revenue is before fair value movements on derivative instruments (if gains).
2. Operating Gross Profit is before the net fair value movements on biological produce (harvest adjustment) and the NZ IFRS adjustments
excluded in Note 1.
3. Operating Expenses are before fair value movements on derivative instruments (if losses).
4. Operating EBIT, EBITDA and NPAT are before any fair value adjustments.
TABLE 1
OPERATING PERFORMANCE
3

The Group’s case sales performance and foreign currency rates achieved are detailed in table 2.
Operating Gross Margin is up 11% on the same period last year. This is due to the increased case
sales and favourable impact of foreign exchange rate changes. Operating expenses (before NZ IFRS
adjustments) at $28.5 million are $1.2 million higher compared to the same period the previous
year. This is due to the impact of a weaker New Zealand currency on the translation of off-shore
expenditure and an increase in people-related costs.
NZ IFRS FAIR VALUE ADJUSTMENTS
In accordance with NZ IFRS, the Group is required to account for certain of their assets at ‘fair
value’ rather than at historic cost. All movements in these fair values are reflected in and impact the
Statement of Financial Performance. The Group records adjustments in respect of two significant
items at the half-year reporting date, as detailed in table 3:
• Harvest Provision Release (Grapes) – Inventory is valued at market value, rather than costs
incurred, at harvest. Any fair value adjustment is excluded from Operating Performance for the
year, by creating a Harvest Provision. This Harvest Provision is then released through Cost of Sales
when inventory is sold in subsequent years. This represents the reversal of prior periods’ fair value
adjustments in respect of biological produce as finished wine is sold in subsequent years. This
adjustment has resulted in a write-down of $9.8 million for the period (December 2017: write-
down of $8.9 million);
DELEGAT INTERIM REPORT 2019 EXECUTIVE CHAIRMAN’S REPORT


Dec 2018 Dec 2017 % change
Case Sales (000s) Actual Actual vs 2017
UK, Ireland and Europe 469 358 31%
North America (USA and Canada) 640 568 13%
Australia, NZ and Asia Pacific 467 451 4%
Total Cases 1,576 1,377 14%

Foreign Currency Rates
GB£ 0.5138 0.5358 4%
AU$ 0.9301 0.9124 -2%
US$ 0.6787 0.7151 5%
CA$ 0.8789 0.8967 2%
TABLE 2
CASE SALES
AND FOREIGN
CURRENCY
4

Dec 2018 Dec 2017 % change
Actual Actual vs 2017
NZ$ millions Restated*
Operating NPAT 31.4 26.9 17%
Operating NPAT % of Revenue 22% 21%
NZ IFRS Fair Value Items
Biological Produce (Grapes)
1
(9.8) (8.9) -10%
Derivative Instruments 1.3 (1.4) n/m
2
Total Fair Value Items (8.5) (10.3) 19%
Less: Tax 2.4 2.8 -19%
Fair Value Items after Tax (6.1) (7.5) 19%
Reported NPAT 25.3 19.4 30%
• Derivative Instruments held to hedge the Group’s foreign currency and interest rate exposure.
The mark-to-market movement of these instruments at balance date resulted in a fair value write-
up of $1.3 million (December 2017: write-down of $1.4 million).
The adjustments, net of taxation, amount to a write-down of $6.1 million (December 2017: write-
down of $7.5 million).
RECONCILIATION OF REPORTING TO OPERATING PERFORMANCE
Accounting for all fair value adjustments under NZ IFRS, the Group’s reported unaudited financial
performance for the six months ended 31 December 2018 is reconciled to Operating Profit as
detailed in table 4.
CASH FLOW
The Group generated Cash Flows from Operations of $21.3 million in the current half-year, which is
a decrease of $3.0 million on the same period last year. This decrease is due to the timing of income
tax payments. A total of $18.6 million was paid for additional property, plant and equipment during
the period, including vineyard developments in New Zealand, and development of the Hawke’s Bay
and Marlborough wineries, which will provide earnings growth into the years ahead. The Group
distributed $15.2 million to shareholders in dividends. Additional borrowings of $15.1 million were
drawn down to fund the increased capital investment during the six months.
Notes:
1. Biological Produce (Grapes) is the difference between market value paid for grapes versus the cost to grow grapes. The Harvest Provision is
reversed and only recognised when the finished wine is sold.
2. n/m means not meaningful.
IMPACT OF FAIR VALUE
ADJUSTMENTS
TABLE 3
*The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with
Customers on 1 July 2018. Refer to Note 1 of the financial statements.
DELEGAT INTERIM REPORT 2019 EXECUTIVE CHAIRMAN’S REPORT
5

The Group, having secured a $350.0 million syndicated senior debt facility in 2014, is well positioned
to fund its current operations as well as future capital investment in both New Zealand and Australia.
The Group’s Net Debt at 31 December 2018 amounted to $291.5 million, in line with last half-year
and well within the Group’s facility.
LOOKING FORWARD
The results achieved in the six months to December 2018 are testament to the strength of the Group’s
business model. Delegat Group is well positioned to pursue its strategic goal to build a leading
global Super Premium wine company. The Group forecasts to achieve global case sales for the full
year of 3,040,000, up 11% on last year. Based on the prevailing exchange rates, the Group forecasts
a 2019 operating profit result of at least $50.3 million, up on last year’s record performance by 12%.
JIM DELEGAT
EXECUTIVE CHAIRMAN


Operating Fair Value Reported Operating Fair Value Reported
NZ$ millions Adjustment Adjustment
Revenue 143.0 1.3 144.3 127.6 – 127.6
Cost of Sales (64.7) (9.8) (74.5) (56.9) (8.9) (65.8)
Gross Profit 78.3 (8.5) 69.8 70.7 (8.9) 61.8
Operating Expenses (28.5) – (28.5) (27.3) (1.4) (28.7)
EBIT
1
49.8 (8.5) 41.3 43.4 (10.3) 33.1
Interest and Tax (18.4) 2.4 (16.0) (16.5) 2.8 (13.7)
NPAT
2
31.4 (6.1) 25.3 26.9 (7.5) 19.4
EBIT
1
49.8 (8.5) 41.3 43.4 (10.3) 33.1
Depreciation 7.7 – 7.7 7.5 – 7.5
EBITDA
3
57.5 (8.5) 49.0 50.9 (10.3) 40.6
2018 Actual2017 Actual
Restated*
Notes:
1. EBIT means earnings before interest and tax.
2. NPAT means net profit after tax.
3. EBITDA means earnings before interest, tax, depreciation and amortisation.
*The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with
Customers on 1 July 2018. Refer to Note 1 of the financial statements.
DELEGAT INTERIM REPORT 2019 EXECUTIVE CHAIRMAN’S REPORT
TABLE 4
RECONCILIATION
OF REPORTING TO
OPERATING
PERFORMANCE
6

* The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with Customers on
1 July 2018. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
Unaudited
Dec 2018
6 Months
$000
Audited
June 2018
12 M o nths
$000
Restated*
Unaudited
D e c 2017
6 Months
$000
Restated*
Revenue 144,339 255,762 127,629
Profit before finance costs 41,365 7 7,119 33,10 4
Finance costs 6,10 0 11,957 6,045
Profit before income tax 35,265 65,162 27,059
Income tax expense 9,955 18,326 7,625
Profit for the Period attributable to Shareholders of the Parent Company 25,310 46,836 19,434

Earnings Per Share
– Basic and fully diluted earnings per share (cents per share) 25.03 46.31 19.22
STATEMENT OF FINANCIAL PERFORMANCE
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
7

The accompanying notes form part of these financial statements
Unaudited
Dec 2018
6 Months
$000
Audited
June 2018
12 M o nths
$000
Unaudited
D e c 2017
6 Months
$000
Profit after income tax 25,310 46,836 19,434
Other comprehensive income that may subsequently
be classified to the profit and loss:
– Translation of foreign subsidiaries (1,703) 3,238 3,063
– Net gain/(loss) on hedge of a net investment 1,154 (1,112) (1,375)
– Income tax relating to components of other comprehensive income (323) 311 385
Total comprehensive income for the period, net of tax 24,438 49,273 21, 507
Comprehensive income attributable to Shareholders of the Parent Company 24,438 49,273 21,507
STATEMENT OF OTHER COMPREHENSIVE INCOME
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
8

Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2018 49,815 (2,698) 296,072 343,189
Changes in equity for the period ended 31 December 2018
Other comprehensive income
– Translation of foreign subsidiaries – (1,703) – (1,703)
– Net gain on hedge of a net investment – 1,154 – 1,154
– Income tax relating to components of
other comprehensive income – (323) – (323)
Total other comprehensive income – (872) – (872)
– Net profit for the period – – 25,310 25,310
Total comprehensive income for the period – (872) 25,310 24,438
Equity Transactions
– Dividends paid to shareholders – – (15,177) (15,177)
Unaudited balance at 31 December 2018 49,815 (3,570) 306,205 352,450
FOR THE PERIOD ENDED 31 DECEMBER 2018 (UNAUDITED)
STATEMENT OF CHANGES IN EQUITY
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
9

Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2017 49,815 (5,135) 262,389 3 0 7, 0 6 9
Changes in equity for the year ended 30 June 2018
Other comprehensive income
– Translation of foreign subsidiaries – 3,238 – 3,238
– Net loss on hedge of a net investment – (1,112) – (1,112)
– Income tax relating to components of
other comprehensive income – 311 – 311
Total other comprehensive income – 2,437 – 2,437
– Net profit for the year – – 46,836 46,836
Total comprehensive income for the year – 2,437 46,836 49,273
Equity Transactions
– Dividends paid to shareholders – – (13,153) (13,153)
Audited balance at 30 June 2018 49,815 (2,698) 296,072 343,189
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2017 49,815 (5,135) 262,389 3 0 7, 0 6 9
Changes in equity for the period ended 31 December 2017
Other comprehensive income
– Translation of foreign subsidiaries – 3,063 – 3,063
– Net loss on hedge of a net investment – (1,375) – (1,375)
– Income tax relating to components of
other comprehensive income – 385 – 385
Total other comprehensive income – 2,073 – 2,073
– Net profit for the period – – 19,434 19,434
Total comprehensive income for the period – 2,073 19,434 21,507
Equity Transactions
– Dividends paid to shareholders – – (13,153) (13,153)
Unaudited balance at 31 December 2017 49,815 (3,062) 268,670 315,423
FOR THE YEAR ENDED 30 JUNE 2018 (AUDITED)
FOR THE PERIOD ENDED 31 DECEMBER 2017 (UNAUDITED)
STATEMENT OF CHANGES IN EQUITY CONTINUED
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
10

STATEMENT OF FINANCIAL POSITION
The accompanying notes form part of these financial statements
Unaudited
Dec 2018
$000
Audited
June 2018
$000
Unaudited
D e c 2017
$000
Equity
Share capital 49,815 49,815 49,815
Foreign currency translation reserve (3,570) (2,698) (3,062)
Retained earnings 306,205 296,072 268,670
Total Equity 352,450 343,189 315,423
Liabilities
Current Liabilities
Trade payables and accruals 2 7, 1 1 6 32,941 21,115
Derivative financial instruments 2,076 3,020 1,942
Income tax payable 1,069 6,485 133
30,261 42,446 23,190
Non-Current Liabilities
Deferred tax liability 3 7, 7 9 2 33,754 33,706
Derivative financial instruments 4,288 3,711 3,775
Interest-bearing loans and borrowings (secured) 298,528 285,754 295,210
340,608 323,219 332,691
Total Liabilities 370,869 365,665 355,881
Total Equity and Liabilities 723,319 708,854 671,304

DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2018
11

STATEMENT OF FINANCIAL POSITION CONTINUED
The accompanying notes form part of these financial statements
Unaudited
Dec 2018
$000
Audited
June 2018
$000
Unaudited
D e c 2017
$000
Assets
Current Assets
Cash and cash equivalents 6,994 4,264 3,897
Trade and other receivables 52,732 42,635 44,875
Derivative financial instruments 949 – 448
Inventories 139,149 147,431 124,224
199,824 194,330 173,444
Non-Current Assets
Property, plant and equipment 518,982 509,861 493,622
Intangible assets 4,513 4,663 4,225
Derivative financial instruments – – 13
523,495 514,524 497,860
Total Assets 723,319 708,854 671,304
For, and on behalf of, the Board who authorised the issue of the financial statements on 25 February 2019.
JN Delegat, Executive Chairman JA Freeman, Managing Director
DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2018
12

Unaudited
Dec 2018
6 Months
$000
Audited
June 2018
12 M o nths
$000
Restated*
Unaudited
D e c 2017
6 Months
$000
Restated*
Operating Activities
Cash was provided from
Receipts from customers 136,996 250,359 123,900
Net GST received 274 74 693
1 3 7, 2 7 0 250,433 124,593
Cash was applied to
Payments to suppliers and employees 98,449 168,293 86,352
Net interest paid 5,928 12,457 6,446
Net income tax paid 11,613 11,914 7,550
115,99 0 192,664 10 0,348
Net Cash Inflows from Operating Activities 21,280 57,769 24,245

Investing Activities
Cash was provided from
Proceeds from sale of property, plant and equipment 80 2,058 1,774
Dividends received 4 1 1
84 2,059 1,775
Cash was applied to
Purchase of property, plant and equipment 1 7, 1 9 6 45,896 22,090
Purchase of intangible assets 494 451 476
Capitalised interest paid 883 1,692 899
18,573 48,039 23,465
Net Cash Outflows from Investing Activities (18,489) (45,980) (21,690)

STATEMENT OF CASH FLOWS
* The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with Customers on
1 July 2018. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
13

Unaudited
Dec 2018
6 Months
$000
Audited
June 2018
12 M o nths
$000
Restated*
Unaudited
D e c 2017
6 Months
$000
Restated*
Financing Activities
Cash was provided from
Proceeds from borrowings 25,375 28,514 18,450
25,375 28,514 18,450
Cash was applied to
Dividends paid to shareholders 15,165 13,147 13,142
Repayment of borrowings 10,250 27,687 8,636
25,415 40,834 21,778
Net Cash Outflows from Financing Activities (40) (12,320) (3,328)
Net increase/(decrease) in Cash Held 2,751 (531) (773)
Cash and cash equivalents at beginning of the year 4,264 4,479 4,479
Effect of exchange rate changes on foreign currency balances (21) 316 191
Cash and Cash Equivalents at End of the Period 6,994 4,264 3,897
STATEMENT OF CASH FLOWS CONTINUED
* The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with Customers on
1 July 2018. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
14

Unaudited
Dec 2018
6 Months
$000
Audited
June 2018
12 M o nths
$000
Unaudited
D e c 2017
6 Months
$000
Reconciliation of Profit for the Period with Cash Flows
from Operating Activities:
Reported profit after tax 25,310 46,836 19,434
Add/(deduct) items not involving cash flows
Depreciation expense 7, 7 3 1 15,089 7,493
Other non-cash items (1,382) 2,733 2,582
Loss/(gain) on disposal of assets 45 (11) –
Movement in derivative financial instruments (1,316) 2,923 1,4 4 8
Movement in deferred tax liability 4,038 2,630 2,582
9,116 23,364 14,105

Movement in working capital balances are as follows:
Trade payables and accruals (5,825) 3,617 (8,209)
Trade and other receivables (10,097) (6,683) (8,923)
Inventories 8,282 (13,751) 9,456
Income tax (5,416) 3,469 (2,883)

Add items classified as investing and financing activities
Capital purchases included within trade payables and inventories (90) 917 1,265
(13,14 6) (12,431) (9,294)
Net Cash Inflows from Operating Activities 21,280 57,769 24,245

Reconciliation of movement in Net Debt:
Opening balance at beginning of the year 281,490 278,034 278,034
Per statement of cash flows:
– Proceeds from borrowings 15,125 827 9,814
– Net (increase)/decrease in cash held (2,751) 531 773
Foreign exchange movement (2,407) 1,940 2,615
Other non-cash movements 77 158 77
Closing balance at end of the Period 291,534 281,49 0 291,313
STATEMENT OF CASH FLOWS CONTINUED
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
15

1. GENERAL INFORMATION
REPORTING ENTITY
The financial statements presented are those of Delegat Group Limited and its subsidiaries (the Group). Delegat
Group Limited is a company limited by shares, incorporated and domiciled in New Zealand and registered under the
Companies Act 1993. The Parent shares are publicly traded on the New Zealand Stock Exchange.
The financial statements for the Group for the six months ended 31 December 2018 were authorised for issue in
accordance with a resolution of the Directors on 25 February 2019.
BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice
in New Zealand (NZ GAAP), the requirements of the Financial Markets Conduct Act 2013, and NZ IAS 34: Interim
Financial Reporting. Accounting policies applied in these interim financial statements comply with New Zealand
equivalents to International Financial Reporting Standards, and other applicable Financial Reporting Standards (NZ
IFRS) as applicable to the Group as a profit-oriented entity.
The interim financial statements are presented in New Zealand Dollars, rounded to the nearest thousand. They are
prepared on a historical cost basis except for derivative financial instruments and biological produce which have been
measured at fair value.
The preparation of the interim financial statements in conformity with NZ IAS 34 requires the Group to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances. Actual results may vary from these
estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in
the period of revision and future periods if the revision affects both current and future periods.
FINANCIAL INSTRUMENTS
The Group holds interest rate swaps at fair value through the statement of financial performance. In estimating the
fair value of the interest rate swaps the Group uses level 2 inputs of the fair value measurement hierarchy. The Group’s
interest rate swaps fall into level 2 of the fair value measurement hierarchy because their fair value is determined using
inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly as prices
or indirectly (derived from prices). The fair values are derived through valuation techniques that maximise the use of
observable market data where it is available and rely as little as possible on entity specific estimates.
NOTES TO THE FINANCIAL STATEMENTS
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
16

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
CHANGES IN ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the previous financial year, with the exception of the
adoption of NZ IFRS 15: Revenue from Contracts with Customers and NZ IFRS 9: Financial Instruments on 1 July
2018. Refer to the published financial statements for the year ended 30 June 2018 for a complete listing of the Group
accounting policies.
On 1 July 2018, the Group adopted NZ IFRS 15: Revenue from Contracts with Customers, applying the fully retrospective
transition provision. NZ IFRS 15 establishes principles for reporting useful information to users of financial statements
about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with
customers. NZ IFRS 15 supersedes NZ IAS 18: Revenue. The changes in NZ IFRS 15 do not have an impact on the timing
of revenue recognition or net profit after tax for the Group, however there are some selling, marketing and promotion
expenses that have been reclassified to revenue as part of the determination of the transaction price under NZ IFRS
15. In accordance with the requirements of NZ IAS 8: Accounting Policies, Changes in Accounting Estimates and
Errors, the financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated. The
adoption of NZ IFRS 15 has not had an impact on the statement of financial position. The effect on the Group’s financial
statements of the adoption of NZ IFRS 15 has been demonstrated in the table below:

Unaudited
June 2018
$000
Increase /
(Decrease)
Unaudited
D e c 2017
$000
Increase /
(Decrease)
Financial statement line:
Statement of Financial Performance
Revenue (16,360) (9,280)
Selling, marketing and promotion expenses (16,360) (9,280)
Statement of Cash Flows
Receipts from customers (16,360) (9,280)
Payments to suppliers and employees (16,360) (9,280)

DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
17

2. SEGMENTAL REPORTING
The Group reviews its operational performance based upon the management and the geographic areas in which their
customers are based. Financial information which is available to management in order to assess segment performance
and investment opportunities is presented on the same basis. In accordance with NZ IFRS 8: Operating Segments this
forms the basis of presentation for Segment Reporting and is the format adopted below:
– Delegat Limited (Delegat) is party to vineyard leases and has interests in freehold land and winery infrastructure
which allows the company to grow, harvest and make finished wine to be marketed, distributed and sold into the
Super Premium wine markets. Delegat sells and markets its product through a combination of subsidiary companies
based overseas or to customers and distributors directly in the New Zealand, Canadian, Asian and Pacific Island
markets. Delegat Australia Pty Limited, Delegat Europe Limited and Delegat USA, Inc. act as distributors and assist
in the marketing of product in their respective geographic regions. Wines are sold all year round to all regions and
the Group considers there is no significant variation in revenues throughout the year.
The Group implements appropriate transfer pricing regimes within the operating segments on an arm’s length basis
in a manner similar to transactions with third parties.
Management monitors the operating results of its business units separately for the purpose of making resource
allocations and performance assessments. Segment performance is evaluated based on operating profit or loss,
which may be measured differently from operating profit or loss in the consolidated financial statements as segment
reporting is based upon internal management reports. The main differences are a result of some deferred tax balances
being recognised upon consolidation not being allocated to individual subsidiaries. Also intercompany stock margin
eliminations are managed on a group basis and are not allocated to operating segments.
For the 6 months ended
31 December 2018
Delegat
Limited
$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.
$000
Other
Segments
10
$000
Eliminations
and
Adjustments
11
$000
6 months ended
31 December
2018
$000
Operating income
External sales
2,8
32,666 45,551 43,201 58,395 2,123 (38,930) 143,0 06
Internal sales 128,491 – – – 3,941 (132,432) –
Fair value gain on derivative
financial instruments 1,316 – – – – – 1,316
Dividend revenue 4 – – – 7 – 11
Interest revenue 3 2 – – 1,480 (1,479) 6
Total segment revenues
1
162,480 45,553 43,201 58,395 7,551 (172,841) 144,339
Operating expenses
Interest expense
3
6,926 – – – 653 (1,479) 6,10 0
Depreciation
4
6,738 63 9 30 891 – 7, 7 3 1
Income tax expense
5
8,258 415 372 306 527 77 9,955
Segment profit 20,373 954 1,572 862 1,349 200 25,310
Assets
Segment assets
6
670,954 26,419 23,678 27,682 101,641 (127,055) 723,319
Capital expenditure
7
17,790 12 2 64 755 – 18,623
Segment liabilities 369,024 12,793 17,971 16,107 38,262 (83,288) 370,869
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
18

2. SEGMENTAL REPORTING (CONTINUED)
1. Intersegment revenues are eliminated on consolidation. Intercompany profit margins are also eliminated.
2. External sales revenue includes various payments to customers for volume discounts, rebates and other promotional support. For volume discounts,
rebates and other promotional support not invoiced at 30 June 2018 the Group recognised accruals of $23,137,000 (June 2017: $19,307,000).
During the six months ended 31 December 2018 $2,641,000 of these accruals have been released (December 2017: $2,369,000).
3. Interest expense is net of any interest capitalised to long-term assets. During the period $883,000 (December 2017: $899,000) was capitalised to
long-term assets.
4. Depreciation expense presented above is gross of $6,997,000 (December 2017: $6,849,000), which has been included within inventory.
5. Segment income tax expense does not include the deferred tax impacts of temporary differences arising from intercompany stock margin
eliminations or fair value adjustments resulting from the purchase of subsidiary companies as these are managed on a group level.
6. Segment assets include the value of investments and loan balances for subsidiaries which reside in Delegat Limited however do not include the
effects of stock margin eliminations for stock on hand in subsidiaries.
7. Capital expenditure consists of additions of property, plant and equipment inclusive of capitalised interest. Capital expenditure is included within
each of the reported segment assets noted above.
8. For the six months ended 31 December 2018 Delegat Australia Pty Limited had a single customer which comprised 10% or more of Group sales
amounting to $18,491,000, and Delegat USA, Inc. had a single customer which comprised 10% or more of Group sales amounting to $30,689,000.
9. For the six months ended 31 December 2017 Delegat Australia Pty Limited had a single customer which comprised 10% or more of Group sales
amounting to $18,128,000, and Delegat USA, Inc. had a single customer which comprised 10% or more of Group sales amounting to $21,775,000.
*
10. Other segments’ assets include non-current assets of Barossa Valley Estate Pty Limited of $48,017,000 (December 2017: $49,400,000) which are
located in Australia.
11. The eliminations and adjustments of segment profit, assets and liabilities relate to intercompany transactions and balances which are eliminated on
consolidation.
For the 6 months ended
31 December 2017
Restated*
Delegat
Limited
$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.
$000
Other
Segments
10
$000
Eliminations
and
Adjustments
11
$000
6 months ended
31 December
2017
$000
Operating income
External sales
2,9
29,865 46,664 34,581 47,237 3,110 (33,870) 1 2 7, 5 8 7
Internal sales 110,385 – – – 6,647 (117,032) –
Dividend revenue 7,873 – – – 5 (7,869) 9
Interest revenue 1 2 – – 1,808 (1,778) 33
Total segment revenues
1
148,124 46,666 34,581 47,237 11,570 (160,549) 1 2 7, 6 2 9
Operating expenses
Interest expense
3
7,319 – – – 504 (1,778) 6,045
Depreciation
4
6,589 71 12 32 789 – 7,493
Income tax expense/(credit)
5
5,911 426 304 391 871 (278) 7, 6 2 5
Segment profit/(loss) 23,042 977 1,285 546 2,168 (8,584) 19,434
Assets
Segment assets
6
623,048 25,617 16,363 23,786 123,816 (141,326) 671,304
Capital expenditure
7
21,337 – – – 928 – 22,265
Segment liabilities 366,410 13,016 13,351 14,452 46,271 (97,619) 355,881
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
* The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with Customers on
1 July 2018. Refer to Note 1 of the financial statements.
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
19

3. EXPENSES
Expenses by function have been categorised as follows:
Unaudited
Dec 2018
6 Months
$000
Audited
June 2018
12 M o nths
$000
Restated*
Unaudited
D e c 2017
6 Months
$000
Restated*
Cost of sales 74,491 119,960 65,800
Selling, marketing and promotion expenses 21,794 42,673 21,058
Corporate governance expenses 418 934 459
Administration expenses 6,050 12,153 5,63 0
Unrealised foreign exchange losses 221 – 13 0
Fair value movement on derivative instruments – 2,923 1,4 4 8
4. ACQUISITION AND DISPOSAL OF ASSETS
During the six months ended 31 December 2018 the Group incurred total capital expenditure of $18,623,000 (31
December 2017: $22,265,000). During the six months ended 31 December 2018 the Group disposed of property, plant
and equipment with a net book value of $125,000 (31 December 2017: $1,774,000).
5. CAPITAL COMMITMENTS
The estimated capital expenditure contracted for at 31 December 2018 but not provided for is $17,224,000 (31
December 2017: $11,588,000).
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
* The financial statements for the periods ended 30 June 2018 and 31 December 2017 have been restated following the adoption of NZ IFRS 15: Revenue from Contracts with Customers on
1 July 2018. Refer to Note 1 of the financial statements.
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
20

Directors
Jakov Nikola Delegat
Rosemari Suzan Delegat
Robert Lawrence Wilton
Alan Trevor Jackson
Shelley Jane Cave
John Anthony Freeman
Registered Office
Level 1, 10 Viaduct Harbour Avenue
Auckland 1010
PO Box 91681
Victoria Street West
Auckland 1142
Solicitors
Heimsath Alexander
Level 1, Shed 22, Prince’s Wharf
147 Quay Street
PO Box 105884
Auckland 1143
Auditors
Ernst & Young
EY Building
2 Takutai Square
Britomart
Auckland 1010
Share Registrar
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
Managing your shareholding online:
To change your address, update your payment
instructions and to view your registered details
including transactions please visit
www.investorcentre.com/NZ
General enquiries can be directed to:
enquiry@computershare.co.nz
Private Bag 92119
Auckland 1142
Telephone:
+64 9 488 8777
Facsimile:
+64 9 488 8787
Please assist our registry by quoting your CSN or
shareholder number.
DIRECTORY
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
21

“E&E BLACK PEPPER SHIRAZ,
ONE OF THE BAROSSA VALLEY’S
GOLD STANDARD REDS
OF THE CURRENT ERA.”
94
POINTS
WINE
SPEC TATOR
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