2019 Half Year Results

Allied Farmers Ltd
201 Broadway, Stratford, 4332
PO Box 304, Stratford 4352
Phone: 06 765 6199
Web: www.alliedfarmers.co.nz
Email: headoffice@alliedfarmers.co.nz

26 February 2019

HY19 RESULTS AND HALF YEAR REPORT

The Directors of Allied Farmers Limited (ALF) report an unaudited after tax profit of $1.17
million for the six months ended 31 December 2018. As disclosed to the market on 11
February 2019, and previously signalled at the November 2018 Annual Meeting, the
result is significantly ahead of the first half of the 2018 financial year of $0.25 million.
The Board acknowledges the contribution of the staff in producing this excellent result.

ALF subsidiary New Zealand Farmers Livestock Limited (NZFL), experienced better results
across all of its business divisions continuing a multi-year trend of improved business
performance. Robust controls of corporate overhead costs, plus lower debt through the
partial repayment of bonds, have contributed to a strong group result for the period.

ALF’s cash position and cash flow remain sound, enabling the payment of a dividend in
January 2019 for the second consecutive year.

The livestock agency business was modestly ahead of last year, despite livestock trading
volumes being affected by Mycoplasma bovis. The uncertainty caused by this bacterial
disease of cattle, and the resulting programme to eradicate it from the national herd, led
to some disruption in livestock trading, particularly in the early stages of the season. In
spite of these challenging circumstances, the strength and experience of NZFL’s agent
network, staff and business model enabled the company to achieve a positive result.

The veal processing and trading business also produced an improved result, with better
pricing and some improvement in volume.

The livestock financing operation continued to exhibit strong growth. The provision of
financing enhances NZFL’s ability to assist farmer clients in the management of their cash
flow. Risk is mitigated by largely lending to farmer clients with whom NZFL’s agents
already have a strong relationship and understanding of their business.

NZFL is committed to a strategy of providing a superior service to its farmer clients, to
assist them to be successful in the operation of their own businesses. To this end, NZFL
remains focused on growing its livestock agency business through the recruitment of new
agents, and selected development of new sales yards or access to existing yards.

The MyLiveStock web platform and App is an important part of that strategy and is
valued by clients. Further development of this platform is an important part of NZFL’s
strategy.

In addition, ALF will continue to investigate opportunities to expand its presence in the
wider agricultural sector and is seeking agribusiness opportunities outside of its current
traditional lines of business, which assist farmers to meet the challenges they face on a
day-to-day basis.

As part of its growth strategy, ALF is also today announcing a Share Purchase Plan (SPP),
the proceeds of which will place ALF in a stronger position to invest in new opportunities
as they arise and support the continued growth of NZFL’s business. In addition, the SPP
will allow small shareholders the opportunity to increase their holding in the company on
attractive terms.

The result for the second half of the financial year will largely be determined by the
volume of dairy herd forward sales achieved and general livestock trading. While it is
early days, the signs for dairy herd sales are encouraging. In addition, the impact of
Mycoplasma bovis and related effects on livestock trading appear to be abating. Recent
weather patterns are also prompting more livestock trading activity as farmers seek to
match their stocking rates with pasture conditions. The livestock financing operation is
on an encouraging growth trajectory.

The Directors are encouraged by the trends in the business and anticipate a satisfactory
second half profit, and pleasing full year result.

Yours faithfully,
Allied Farmers Limited

Mark Benseman, Chairman

---

ContentsPage
Consolidated Statement of Profit or Loss and Other Comprehensive Income 2
Consolidated Statement of Changes in Equity3
Consolidated Balance Sheet4
Consolidated Statement of Cash Flows5
Reconciliation of Operating Cash Flows 6
Statement of Accounting Policies7-9
Notes to the Consolidated Financial Statements10-16
Company Directory17
ALLIED FARMERS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 December 2018 (Unaudited)

2
Allied Farmers Limited and Subsidiaries
For the 6 Months ended 31 December 2018 (Unaudited)
Note
Note
Dec
Dec
2018
2017
$000
$000
Revenue
Sale of goods
7,057
4,225
Interest income
473
336
Commission Income
5,632
6,125
Total Revenue
13,162
10,686
Other income
17
18
Total income
13,179
10,704
Expenses
Cost of inventory sold
5,637
3,681
Interest and funding expense1
413
388
Rental and operating leases
60
72
Employee benefit expense
2,955
2,862
Depreciation and amortisation5
325
336
Other operating expenses
2,447
3,036
Total expenses
11,837
10,375
Profit before income tax1,342
329
Income tax expense
(169)
(81)
1,173
248
1,173
248
815
83
358
165
Basic (cents per share)
0.50
0.05
0.50
0.05
The notes on pages 10 to 16 are an integral part of these consolidated financial statements.
Total earnings per share attributable to the equity holders of the Parent Company:
Diluted (cents per share)
Consolidated Statement of Profit or Loss
Total comprehensive income
Profit Attributable to:
Owners of the Parent
Non-Controlling Interests

3
Consolidated Statement of Changes in Equity
Allied Farmers Limited and Subsidiaries
For the 6 Months ended 31 December 2018 (Unaudited)
Parent
Equity
Subtotal
$000$000$000$000$000
Opening balance as at 1 July 2017151,779 (150,756) 1,023 797 1
,820
Comprehensive income
Net Profit for the 6 months ended 31 December 2017-83 83 165 2
48
Total comprehensive income
-83 83 165 2
48
Transactions with owners
Dividends paid- - - - -

Total transactions with owners- - - - -
Closing balance as at 31 December 2017151,779 (150,673) 1,106 962 2
,068
Comprehensive income
Net Profit for the 6 months ended 30 June 2018-1,452 1,452 525 1,977
Total comprehensive income-1,452 1
,452 525 1,977
(234)
Transactions with owners
Dividends paid-(323) (323) (273) (
596)
Acquisition of Redshaw Livestock Limited--- 1
7 17
Total transactions with owners-(323) (
557) (256) (579)
Closing balance as at 30 June 2018151,779 (149,544) 2,001 1,231 3
,466
Comprehensive income
Net Profit for the 6 months ended 31 December 2018-815 815 358 1
,173
Total comprehensive income-815 815 358 1
,173
Transactions with owners
Dividends paid- - - (163) (163)
Total transactions with owners- -- (163) (163)
Closing balance as at 31 December 2018151,779 (148,728) 2,816 1,426 4
,476
Accumulated
losses
Non
Controlling
Interests
Share
Capital
Total
Equity
The notes on pages 10 to 16 are an integral part of these consolidated financial statements.

4
Consolidated Balance Sheet
Allied Farmers Limited and Subsidiaries
As at 31 December 2018 (Unaudited)
Note Dec
June
2018
2018
$000
$000
Equity
Share capital2
151,779
151,779

Reserves
(148,728)
(149,544)
Equity attributable to owners of the Parent
3,051
2,235
Non Controlling Interests
1,426
1,231
Total equity
4,476
3,466
Liabilities
Current liabilities
Trade and other payables3
8,963
10,232

Finance receivables borrowings4
5,350
1,500

Borrowings4
1,188
1,439

Taxation
37
133
Total current liabilities15,538
13,304
Non-current liabilities
Borrowing4
3,275
3,551

Total non-current liabilities3,275
3,551
Total liabilities18,813
16,855
Total liabilities and shareholders equity23,289
20,321
Assets
Current assets
Cash and cash equivalents11
2,174
569
Trade and other receivables8,11
8,028
9,367

Finance receivables8,11
6,609
4,619

Inventory
905
122
Prepayments
115
13
Total current assets17,831
14,690
Non-current assets
Investments
5
-
Property, plant and equipment5
3,995
4,190

Intangible assets and Goodwill6
769
751
Deferred tax asset
689
690
Total non-current assets5,459
5,631
Total assets23,289
20,321
DirectorDirector
The Board of Directors of Allied Farmers Limited authorised these financial statements for issue on 26 February 2019.
The notes on pages 10 to 16 are an integral part of these consolidated financial statements.

5
Consolidated Statement of Cash Flows
Allied Farmers Limited and Subsidiaries
For the 6 Months ended 31 December 2018 (Unaudited)
December
December
2018
2017
$000$000
Cash Flows from Operating Activities
Cash was provided from:
Receipts from customers14,045 12,638
Interest received473
3
36

14,518
12,974
Cash was applied to:
Payments to suppliers and employees(13,252) (13,750)
Interest paid(413) (388)
T
axation paid(265)
(
266)

(13,930)
(14,405)
Net cash flows from operating activities
587

(
1,430)
Cash Flows from Investing Activities
Cash was provided from:
Sale of property, plant and equipment- 103
- 103
Cash was applied to:
Increase in finance receivables(1,990) (2,935)
Acquisition of subsidiary/investment net of cash acquired(5)
(
225)

Purchase of property, plant and equipment(147) (950)
(
2,142)
(4,110)
Net cash flows (used in) investing activities(2,142) (4,007)
Cash Flows from Financing Activities
Cash was provided from:
Increase in finance receivables borrowings3,850 -

I
ncrease in vehicle finance borrowings146
1
87

3,996
187
Cash was applied to:
Increase (Repay) livestock trading borrowings(439) (143)
R
epayment of vehicle finance borrowings(234)
-
D
ividends paid to Minority Shareholders(163)
-
(
837)

(
143)

Net cash flows from / (used in) from financing activities3,160 44
Net (decrease) in cash and cash equivalents1,605 (5,393)
Cash and cash equivalents at beginning of year569
1
,577
Adjustment for Redshaw Livestock Limited acquisition as subsidiary-
8
0

C
ash and cash equivalents at end of year2,174 (3,736)
The notes on pages 10 to 16 are an integral part of these consolidated financial statements.

6
Reconciliation of Operating Cash Flows
Allied Farmers Limited and Subsidiaries
For the 6 Months ended 31 December 2018 (Unaudited)
Reconciliation of net profit after tax for the year with cash
flow from operating activities:
Group
Group
DecemberDecember
2018
2017
$000$000
Net profit after tax for the period1,173248

Ad
justments for:
(Profit)/Loss on sale of assets-
2
Dep
reciation325336

Movement in impairment provisions on trade receivables828
3
33366

M
ovement in working capital:
(Increase)/Decrease in trade and other receivables1,229(1,088)
Increase/(Decrease) in payables and provisions(1,269)(119)

(Increase)/decrease in inventory(783)(653)
I
ncrease/(decrease) in tax payable(96)(185)

(
919)(2,045)

Net cash (outflows)/inflows from operating activities587(1,430)
The notes on pages 10 to 16 are an integral part of these consolidated financial statements.

7
Statement of Accounting Policies
Allied Farmers Limited and Subsidiaries
For the 6 months ended 31 December 2018 - unaudited
GENERAL INFORMATION
The Group is a Tier 1 for profit entity in terms of XRB (External Reporting Board) A1.
The Group's annual financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). They comply with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS), and other applicable Financial Reporting Standards, as appropriate for profit-oriented entities.
These financial statements comply with International Financial Reporting Standards (IFRS).
These interim financial statements of the Group have been prepared in accordance with the requirements of New
Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34), as appropriate
for profit oriented entities. These financial statements are in compliance with IAS 34: Interim Financial Reporting.
The Group interim financial statements do not include all of the information required for full annual financial
statements.
Where necessary, the amounts shown for the previous periods have been reclassified to facilitate comparison.
These financial statements are prepared in New Zealand dollars ($), which is the company's functional currency.
Amounts have been rounded to the nearest thousand.
These financial statements have been approved for issue by the Board of Directors on 26 February 2019.
The Board of Directors do not have the power to amend the financial statements after they have been issued.
Allied Farmers Limited and Subsidiaries is a rural services group, with its predominant activities comprising livestock
agency services, the procurement and processing of calves and the financing of livestock purchases.
Allied Farmers Limited ("the Parent Company") is a limited liability company, incorporated and domiciled in New
Zealand. The Parent Company's registered address is:
201 Broadway
Stratford
New Zealand 4332
Allied Farmers Limited is a public company listed on the New Zealand Stock Exchange Main Board (NZX code:
ALF).
BASIS OF PREPARATION
The accounting policies applied are consistent with those as described in the annual financial statements for the year
ended 30 June 2018, except for the effects of applying NZ IFRS 15 Revenue from Contracts with Customers and NZ
IFRS 9 Financial Instruments as set out below.
Taxes on income in interim periods are accrued for using the tax rate that would have been applicable to expected
total annual profit or loss.

8
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning
after 1 January 2018. Those which are relevant to the Group are set out below with updated accounting policies as
necessary.
NZ IFRS 15 applies to all revenue arising from contracts with customers, unless the contracts are in the scope of
other standards. The new standard establishes a five-step model to account for revenue arising from contracts with
customers. Under NZ IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity
expects to be entitled in the exchange for acting as agent in a livestock transaction or transferring goods or services
to a customer.
The adoption of NZ IFRS 15 did not have any material affect for the Group, and no restatement to the prior year was
made. The Group’s major revenue streams under NZ IFRS 15 are the sale of livestock agency services
("Commission income") and the procurement and processing of calves ("Sale of goods") as detailed below:
NZ IFRS 9 applies to the accounting for financial instruments, in particular classification and measurement of
financial assets, the impairment of financial assets and hedge accounting. The adoption of NZIFRS 9 did not have
any material effect for the Group and no restatement for the prior year has been made.
Classification and Measurement
NZ IFRS 9 changes the classification criteria and category names of the following financial assets:
- Cash and cash equivalents
- Trade and other receivables
- Finance Business receivables
From 1 July 2018 the Group has classified the above financial assets as at amortised cost. Until June 2018 the
Group fclassified its financial assets as loans and receivables. There was no change in the carrying amount of the
financial assets as a result of reclassification.
At initial recognition, the Group measures its financial instruments, excluding derivatives, at their fair value plus
transaction costs that are directly attributed to the acquisition or issue of the financial asset or financial liability. The
Group subsequently measures all financial instruments at amortised cost, both on initial recognition and impairment.
NZ IFRS 15 Revenue from Contracts with Customers
Revenue from Contracts with Customers
Sale of Goods:The Group contracts with customers to supply them processed livestock and this arrangement
generally includes a performance obligation. The Group has concluded that revenue from sale of processed livestock
should be recognised at the point in time when control of the asset is transferred to the customer.
The preparation of financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected. There have been no
changes to the areas of estimation uncertainty and critical judgement in applying accounting policies that have the
most significant effect on the amount recognised in the financial statements from those appearing in the Annual
Report for the year ended 30 June 2018, other than as described in recognising impairment under NZIFRS 9 below.
Commission income:The Group earns commissions from facilitating livestock sales between purchasers and vendors
on an agency basis. The Group has concluded that revenue from this revenue stream is recognised as agent at point
in time upon the completion of the livestock sale.
Use of Estimates and Judgements
New Standards and Interpretations
NZ IFRS 9 Financial Instruments

9
The Group does not plan to adopt this standard early.
The company intends to adopt NZ IFRS 16 for the annual period beginning on 1 July 2019. The Group's assessment
is that there may be an increase in Total Assets and Total Labilities and increases in interest and amortisation
together with a decrease in rental expenses. However these impacts have yet to be quantified. Consideration of
which transition option to utilise is to be considered.
Accordingly, as at and from 1 July 2018 the Group assessed on a forward-looking basis the expected credit losses
associated with its financial assets carried at amortised cost. The methodology applied in determining the amount of
the impairment provision depends on whether there has been a significant increase in credit risk as well as default.
For financial assets (excluding trade and other receivables), a distinction is made between:
- Financial assets that have not deteriorated significantly in credit quality since initial recognition or that have low
credit risk (“Stage 1”);
- Financial assets that have deteriorated significantly in credit quality since initial recognition and whose credit risk is
not low (“Stage 2”); and
- Financial assets that have objective evidence of impairment at the reporting date - i.e. in default (“Stage 3”)
For trade and other receivables the Group makes use of a simplified approach, as permitted by NZ IFRS 9, and
records the loss allowances as lifetime expected credit losses from initial recognition. This is expected credit losses
that result from all possible default events over the life of the financial instrument.
The term of the Group's finance receivables is typically less than 12 months. Accordingly provisioning is based on
borrower specific factors in conjunction with any macro economic factors contributing to the definition of "significant
increase in credit risk being met", whilst also factoring in any cash flows from collateral held as security for the
financial assets.
’12 month expected credit losses’ are recognised for Stage 1 while ‘lifetime expected credit losses’ are recognised
for the second and third category. Measurement of the expected credit losses is determined by a probability-
weighted estimate of credit losses over the expected life of the financial instrument.
A significant increase in credit risk is defined as a significant increase in the probability of a default occurring since
initial recognition.
For cash and cash equivalents held with financial institutions, no deterioration in credit quality since initial recognition
is presumed to have occurred to the extent that the financial institutions have "investment grade" ratings.
Under the previous accounting standard, impairment was recognised when, and only when, loss events occurred.
However under NZ IFRS 9 impairment is recognised based on the loss that the group expects, considering both
historical loss experience and an assessment of forward-looking impairment indicators.
New Standards and Interpretations Not Yet Adopted
NZ IFRS 16 Leases

The new standard NZ IFRS 16 Leases was released by IASB in January 2016 and adopted by the External
Reporting Board in New Zealand in February 2016. The standard requires lease agreements to be recognised on the
balance sheet as a right to use asset, with a corresponding liability.
Impairment of Financial Assets
The Group considers a broad range of information when assessing credit risk and measuring external credit losses,
including past events, current conditions and reasonable and supportable forecasts that affect the expected
collectability of the future cash flows of the instrument.

10
Notes to the Financial Statements
For the 6 Months ended 31 December 2018 (Unaudited)
1.Financial information on segments of the business
Asset
Management
Services
Livestock
ServicesCorporate
Total
Continuing
$000$000$000$000
- 7,057 - 7,057
Commission Income- 5,632 - 5,632
Other Income- 17 - 17
- 473 - 473
- 13,179 - 13,179
- (5,637) - (5,637)
- (325) - (325)
- (360) (53) (413)
Rental and operating Leases (external)- (59) (1) (60)
Employee benefit expense- (2,908) (47) (2,955)
- (2,388) (58) (2,447)
- 1,501 (159) 1,342
- (169) - (169)
- 1,333 (159) 1,173
Asset
Management
Services
Livestock
ServicesCorporate
Total
Continuing
$000$000$000$000
- 16,752 1,078 17,831
- 5,459 - 5,459
- 22,211 1,078 23,289
- (14,772) (766) (15,538)
- (2,275) (1,000) (3,275)
- (17,047) (1,766)
(18,813)
Profit/Loss after Income Tax
The segment assets and liabilities as at 31 December 2018 for the 6 months ended 31 December 2018:
Allied Farmers Limited and Subsidiaries
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The
chief operating decision maker has been identified as the Board of Directors. The Board of Directors considers the livestock operations
nationally as a distinctly separate activity from other operations including the recently ceased Asset Management Services and the
activity associated with being a listed entity and some Group funding which is regarded as Corporate Services.
The Asset Management Services activities were completed during the previous year with the realisation of the remaining assets.
The Livestock Services segment predominantly relates to livestock sale activities, the financing of livestock sales, and calf procurement,
processing and sales. The Livestock activities are influenced by seasonality. Livestock Sales are normally stronger in the Autumn season
and calf sales traditionally occur mainly in the first half of the financial year.
Corporate activities comprise the corporate activities of the Group including the remaining activities of the Livestock Services holding
company Allied Farmers Rural Limited.
The segment results for the six months ended 31 December 2018 are as follows:
Sales of goods
Interest Income
Total Income
Depreciation and amortisation
Interest and funding expense (external)
Net Other expenses (external)
Profit/Loss before income tax
Income Tax
Cost of Inventory sold
Current Assets
Non Current Assets
Assets
Current Liabilities
Non Current Liabilities
Liabilities

11
Asset
Management
Services
Livestock
ServicesCorporate
Total
Continuing
$000$000$000$000
- 4,225 - 4,225
- 6,125 - 6,125
- 336 - 336
11 - - 11
11 10,685 - 10,696
- (3,681) - (3,681)
- (336) - (336)
- (334) (54) (388)
Rental and operating expense- (71) (1) (72)
Employee benefit expense- (3,425) (20) (3,445)
(1) (2,189) (255) (2,444)
10 648 (330) 329
- - - -
- (81) - (81)
10 568 (330) 248
Asset
Management
Services
Livestock
ServicesCorporate
Total
Continuing
$000$000$000$000
36 13,433 115 13,584
- 5,459 - 5,459
36
18,892 115
19,043
- (12,266) (887) (13,153)
-
(2,163)
(1,000)(3,163)
- (14,429) (1,887) (16,316)
2Share capital
3.Trade and other payablesGroupGroup
Dec-18Jun-18
$000
$000
Trade creditors
3,829
8,525
Employee entitlements2,955
1,180
Other creditors and payables2,179 527
8,963
10,232
4BorrowingsGroupGroup
Dec-18Jun-18
$000$000
Current
Bank borrowings - Finance Receivables (secured)5,350 1,500
384 417
300 550
Finance leases504 472
6,538 2,939
Non Current
Bank borrowings - Finance Receivables (secured)-
1,786 1,940
1,000 1,000
489 611
3,275 3,551
Bank borrowings - Trading (secured)
Bonds (secured)
Finance Leases
Bank borrowings - Trading (secured)
Bonds (secured)
The total number of shares on issue as at 31 December 2018 is 161,505,350 (December 2017: 161,505,350).
Ordinary shares in the Company do not have a par value. All ordinary shares rank equally as to voting, dividends and distribution of
capital on liquidation.
The segment results for the six months ended 31 December 2017 are as follows:
Other Income
Total Income
Interest Income
Sale of goods
Commission Income
Net Other expenses (external)
Profit/Loss before income tax
Inter-segmental income
Non Current Assets
Assets
Current Liabilities
Non Current Liabilities
Liabilities
Cost of Inventory Sold
Current Assets
Income Tax
Profit/Loss after Income Tax
The segment assets and liabilities as at 31 December 2017 are as follows:
Depreciation and amortisation
Interest and funding expense (external)

12
Borrowing Covenants
Finance Leases
Group
Group
Dec-18Jun-18
$000$000
594
539
481
648
1,075
1,187
(80)
(104)
994
1,083
504
472
489
611
994
1,083
The present value of Finance Lease liabilities is as follows:
No later than 1 year
Later than 1 year and no later than 5 years
ANZ Bank New Zealand Limited
The bank applies a financial covenant annually that the New Zealand Farmers Livestock Limited EBITDA (earnings before interest,
taxation, depreciation and amortisation) must be at least 3 times the interest cost expense. The Company has complied with this
covenant throughout the year. In addition the Group must provide annual financial statements within 5 months after balance date.
Finance Lease Liabilities
Lease liabilities are effectively secured as the right to the leased
asset revert to the lessor in the event of default
Gross Finance Lease Liabilities - minimum lease payments
No later than 1 year
Later than 1 year and no later than 5 years
Future Finance Charges of Finance Lease Liabilities
Present Value of Finance Lease Liabilities
Bank borrowings - Trading
Allied Farmers Rural Limited also issued $1,000,000 of Bonds on 30 September 2014. The Bonds are secured by way of a first charge
General Security Agreement over all of the assets and undertakings of Allied Farmers Limited and subsidiaries excluding New Zealand
Farmers Livestock Limited and subsidiaries and a specific security over the shares held by Allied Farmers Rural Ltd in New Zealand
Farmers Livestock Limited plus a guarantee from Allied Farmers Limited and subsidiaries. The Bonds repayment date is 30 September
2021 and have an interest rate of a 450 basis point margin over the 4 year swap rate as at 30 September 2017 as advised in writing to
the Company by ANZ Bank New Zealand Limited, but not less than 6.50% per anum and not more than 7.50% per anum. At 31
December 2018 the interest rate on the Bonds was 7.3% p.a (June 2018: same). There are no financial covenants.

New Zealand Farmers Livestock Limited borrowed $3,050,000 on 3 September 2013 from the ANZ Bank New Zealand Limited to part
finance the acquisition of the sale yards purchased from Allied Farmers Limited. There were three loans secured by way of a first
mortgage charge over the sale yards concerned. On 29 May 2018 the ANZ Bank New Zealand Limited reset the loan terms in the amount
of $2,388,400 with the current interest rate on two of the loans as at 31 December 2018 being the one month commercial loan fixed rate
plus a margin of 2.15% p.a with the third incurring interest at 6.25% per annum. The loans are due for repayment on 6 September 2021.
Principal reductions are being made at $31,972 per month. The balance owing at 31 December 2018 is $2,169,211 (30 June 2018:
$2,357,757).
Overdraft Facilities
A subsidiary, Farmers Meat Export Limited has, from 1 July 2018, a seasonal overdraft facility of $2,700,000 (2018 $1,500,000). This
facility has an interest rate of 6.9% p.a. The amount drawn at 31 December 2018 is $450,000 (June 2018 nil).
The creation of the Farmers Meat Export Limited facility has created the following additional securities granted in favour of the ANZ Bank
New Zealand Limited - A cross guarantee between New Zealand Farmers Livestock Limited and Farmers Meat Export Limited, a first
ranking General Security Agreement over all the assets of Farmers Meat Export Limited, and a first ranking General Security Agreement
of all the assets of New Zealand Farmers Livestock Limited.
Bank Borrowings - Finance Receivables
A subsidiary New Zealand Farmers Livestock Finance Limited has on demand facilities of $3,000,000 (Bull Financing Facility) and
$2,000,000 (General Livestock Financing Facility). The facilities have an interest rate of 6.9% p.a. If either of the facilities have a balance
of $1,500,000 at the end of each month or more, New Zealand Farmers Livestock Finance Limited will supply to the bank a schedule of
details of the individual bull loans or livestock loans outstanding as at that date. The Bull Financing Facility balance owing at 31
December 2018 is $1,850,000 (June 2018 nil). The General Livestock Financing Facility balance owing at 31 December 2018 is
$2,000,000 (June 2018 nil).
A subsidiary New Zealand Farmers Livestock Finance Limited has a general financing livestock loan commercial loan facility of
$1,500,000. This is due for renewal on 31 May 2019 and has an interest rate of 5.85% p.a. The balance owing at 31 December 2018 is
$1,500,000 (June 2018 $1,500,000).
Bonds
Allied Farmers Rural Limited issued $550,000 of Bonds on 29 August 2016. The Bonds are secured by way of a second charge General
Security Agreement over all of the assets and undertakings of Allied Farmers Limited and subsidiaries excluding New Zealand Farmers
Livestock Limited and subsidiaries and a specific security over the shares held by Allied Farmers Rural Limited in New Zealand Farmers
Livestock Limited plus a guarantee from Allied Farmers Limited and subsidiaries. The bonds have an interest rate of 7.75%. There are no
specific financial covenants. The bonds were due to mature on 30 September 2018. The balance owing at 31 December 2018 is
$300,000 (June 18 $550,000). The repayment of $300,000 has been extended until 31st March 2019.
NZ Farmers Livestock Limited has an overdraft facility of $1,000,000 which is not drawn down as at 31 December 2018 (Dec 2017: $Nil,
June 2018: $Nil). This facility has an interest rate of 6.9% p.a. and is secured over the assets of NZ Farmers Livestock Limited and
subsidiaries Farmers Meat Export Limited and NZ Farmers Livestock Finance Limited.

13
5 Property Plant and EquipmentGroupGroup
Dec-18Jun-18
6 Months12 Months
Freehold land$000$000
Cost at beginning of year
2,019 2,019
Additions- -
Disposals-
-
Cost at end of year2,019 2,019
Buildings
Cost at beginning of year
1,041
1,030
Additions - 11
Cost at end of year1,041 1,041
Accumulated depreciation at beginning of year(299) (237)
Depreciation charged to income statement(33) (62)
Accumulated depreciation at end of year(332) (299)
Buildings net book value
709 742
Motor vehicles
Cost at beginning of year
1,729 1,412
Additions 133 1,139
Disposals(157) (822)
Cost at end of year1,705
1,729
Accumulated depreciation at beginning of year(532)
(835)
Depreciation charged to income statement(273) (387)
Disposals118 690
Accumulated depreciation at end of year(687) (532)
Motor vehicles net book value1,018 1,197
Plant and equipment
Cost at beginning of year
426 305
Additions 23 131
Disposals- (10)
Cost at end of year449
426
Accumulated depreciation at beginning of year(194)
(155)
Depreciation charged to income statement(19) (46)
Disposals13
7
Accumulated depreciation at end of year(200) (194)
Plant and equipment net book value249 232
5,214
5,215
(1,219) (1,025)
Total property, plant and equipment net book value3,995 4,190
Cost Capitalised Finance Lease1,592 1,730
(707) (532)
Net Book Amount884 1,198
Vehicles include the following amounts where the Group is a leasee under a Capitalised Finance Lease:
Accumulated Depreciation
Property, plant and equipment cost at end of year
Property, plant and equipment accumulated depreciation at end of year
Finance Lease liabilities have arisen on the financing of the acquisition of motor vehicles. The Finance Leases provide for the ownership
of the vehicle to remain with the Lessor and New Zealand Farmers Livestock Limited (the Lessee) has a commitment to pay monthly
instalments. The security for the Finance Leases is the motor vehicle. The lessee has also committed to meet further obligations relating
to distance covered and condition of the vehicle on the expiry of the Finance Lease. Under the terms of the finance lease New Zealand
Farmers Livestock Limited has the option to purchase in respect of motor vehicles held under finance leases.

14
6Intangible assetsGroup
Group
Dec-18Jun-18
6 Months12 Months
$000$000
Computer software
Cost at beginning of year234 225
Additions 19 9
Disposals- -
Cost at end of year
253
234
Accumulated amortisation at beginning of year(225) (174)
Amortisation charged to income statement - (51)
Disposals-
-
Accumulated amortisation at end of year(225)
(225)
Computer software net book value28 9
Goodwill
Cost at beginning of year742 100
Additions - 642
Cost at end of year742 742
Total intangibles769 751

7
Share of
Joint
OperationLocationDec-18Jun-18
6 Months12 Months
- Associated Auctioneers33%Te Kuiti
Summarised Balance Sheet
3181
3053
128
97280
124304
(27) (24)
- Associated Auctioneers50%Stratford
181147
17
12
2123
185158
136297
108219
2878
- Associated Auctioneers50%Frankton
262111
4217
113112
333206
325
618
199363
127255
Joint Arrangements
The Group's subsidiary New Zealand Farmers Livestock Limited owns a proportion of various sale yard tangible assets and has joint
arrangements in relation to the operation of these sale yards (referred to as 'Associated Auctioneers').
These joint operations are in place over 4 different locations. These joint operations are charged with the operating activities of the sale
yards including conducting sales of livestock via the auction process, maintaining the sale yards, collecting levies on livestock sales and
meeting operating costs of the yards. If there is a shortfall in the income to meet the operating costs in any one year then the joint
operation's parties are required to contribute to the shortfall in the proportion of their ownership of the sale yards.
The various joint operations are:
Current Assets
Current Liabilities
Net Assets
Summarised statement of profit or loss
Income
Expenses
Profit (Loss) before taxation
Summarised Balance Sheet
Current Assets
Profit
Summarised Balance Sheet
Current Assets
Current Liabilities
Non current assets
Net assets
Summarised statement of profit or loss
Income
Expenses
Profit
Current Liabilities
Non current assets
Net assets
Summarised statement of profit or loss
Income
Expenses

15
- Associated Auctioneers
25%
Morrinsville
133174
1320
212
217
Net assets
332371
70
334
110275
(40) 59
8 Trade and other receivables
Group
Group
Dec-18Jun-18
$000$000
Trade receivables livestock (gross)8,0439,390
6,6094,619
Provision for impaired assets(15) (23)
Trade receivables (net of provision)14,637 13,986
Prepayments115 13
14,752 13,999
It is expected that all trade receivables will be collected within 12 months of the balance date.
9
Categories of related party relationships
(a)Key management personnel
Group
Group
Dec-18Dec-17
6 Months
6 months
$000
$000
Salaries and other short term benefits402
173
Directors fees77 67
Total key management personnel compensation479 240
(b)
(a) Key management personnel: those persons having authority and responsibility for planning, directing and controlling the activities
of the Group, directly or indirectly, including all directors.
(b) Other related parties: Other related parties including entities that may have directors who are also directors of the Company.
Related Party Transactions
All transactions with related parties are entered into in the ordinary course of business. No related party debts have been written off or
forgiven during the period.
Trade receivables finance (gross)
Certain directors and key management of the Allied Farmers Limited Group of companies have completed livestock trading
transactions with the Group's subsidiary, New Zealand Farmers Livestock Ltd, which over the six months to December 2018 totalled
$183,238 in sales (December 2017: $148,277), $190,063 in purchases (December 2017: $190,063) and $12,233 in commission
(December 2017: $10,120), resulting in gross transactions of $392,226 (December 2017: $348,460). These transactions took place
on normal trading terms. The commission earned by New Zealand Farmers Livestock Ltd on these transactions for the six months to
31 December 2018 was $12,233 (December 2017: $10,120).
Other related parties
Albany Braithwaite Holdings Limited an associated person of Director Mark Benseman is the holder of $600,000 in bonds. Albany
Braithwaite Holdings Limited is also a Substantial Product Holder of Allied Farmers as is Stockmans Holdings Limited a company
associated with two senior management employees.
Related party transactions are detailed by reference to the following categories:
Overview of related party transactions
The joint operation of the sale yards is strategically vital to the interests of New Zealand Farmers Livestock Limited as the sale yards
activity provide significant income to New Zealand Farmers Livestock Limited via commission on the sale of livestock handled through the
sale yards.
Summarised Balance Sheet
Current Assets
Current Liabilities
Non current assets
Summarised statement of profit or loss
Income
Expenses
(Loss) Profit before taxation
There are various contractual restrictions in relation to the assets and liabilities of these joint operations, such as requiring unanimous
agreement in relation to accessing the bank accounts.

16
10Contingent Assets and Liabilities
11
Financial assets and liabilities
Cash and short term deposits
These are short term in nature and their carrying value is equivalent to their fair value.
Trade, related party and other receivables
These assets are short term in nature and are reviewed for impairment; their carrying value approximates their fair value
Trade, related party and other payables
These liabilities are mainly short term in nature with their carrying value approximating their fair value.
Borrowings
Borrowings have fixed and floating interest rates. Fair value is estimated using the discounted cash flow model based on a current
market interest rate for similar products; their carrying value approximates their fair value.
Fair Values
The Group's financial instruments that are measured subsequent to initial recognition at fair value are grouped into levels based on the
degree to which the fair value is observable
The Group’s classification of each class of financial assets and their fair values is set out below.
Group
Group
Dec-18Dec-17
6 Months12 Months
$000$000
Financial Assets classified as at amortised cost (previously loans and receivables)
Cash and cash equivalents
2,174 569
Trade and other receivables
8,028 9,367
Finance Receivables
6,609 4,619
16,811 14,555
Financial Liabilities measured at amortised cost
Trade and other payables
8,963 10,232
Borrowings - Bank
7,519 3,857
Borrowings - Bonds
1,300 1,550
Borrowings - Finance Leases
994 1,083
18,776 16,721
There are no contingent assets or liabilities as at 31 December 2018.
The Group’s activities expose it to a variety of financial risks, market risk (including currency and interest rate risk), credit risk and liquidity
risk. The Group’s overall risk management program seeks to minimise potential adverse effects on the Group’s financial performance.
The consolidated interim financial statements do not include all financial risk management information and disclosures required in the
annual financial statements. They should be read in conjunction with the Group’s annual financial statements for the period ending 30
June 2018. There have been no changes in the risk management policies since year end.
Level 2 - fair value measurements derived from inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly
Level 3 - fair value measurements derived from valuation techniques that include inputs for the asset or laibility which are not based on
observable market data.
Level 1 - fair value measurements derived from quoted prices in active markets for identical assets
There have been no transfers between levels or changes in valuation methods used to determine the fair value of the Group's financial
instruments during the period.

17
PricewaterhouseCoopers
PwC Centre
10 Waterloo Quay, PO Box 243
Wellington 6140
Share Registrar
PO Box 91976
Auckland 1142
Shareholder Enquiries
Link Market Services Limited
Wellington 6012Ph: 09 375 5998
Fax: 09 375 5990
Email: Lmsenquiries@linkmarketservices.com
PO Box 91976
Auckland 1142
www.alliedfarmers.co.nz
Ph: 06 765 6199
Website
Postal Address of the Company
PO Box 304
Stratford 4352
New Plymouth 4312
Registered Office of the Company
201 Broadway
Philip C Luscombe BAgSci (Hons)
199 Palmer Road
Directors of the Company
Mark Benseman BA (Hons) (Chairperson)Auditors
2B/3 Clyde Quay Wharf
Stratford 4332
Karori
Marise James FCA CFInstD
3 Sunset Street
Bell Block
RD 28Link Market Services Limited
Hawera 4678
G Andrew McDouall BCA. Dip NZSE
5 Fancourt Street
COMPANY DIRECTORY
Te Aro
Wellington 6011

---

Allied Farmers Limited

Results for announcement to the market
(Unaudited)
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
$NZ
13,162
23.2% UP
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
$NZ
815
881.9% UP
Net profit (loss)
attributable to security
holders.
$NZ
815
881.9% UP

Interim/Final Dividend Amount per security Imputed amount per
security
It is not proposed to pay
dividends.
$ N/A

Record Date Not Applicable
Dividend Payment Date Not Applicable


Comments:
(see below)

Net Tangible Assets per
security
$NZ 0.02 dollars $NZ 0.01 dollars