FWL – Interim Results to 31 December 2018

Half Yearly Report|December 31 2018

Contents
FOLEY WINES | HALF YEARLY REPORT
Highlights
CEO’s summary
Financial Statements
Income statement
Statement of comprehensive income
Statement of changes in equity
Statement of financial position
Statements of cash flows
Notes to the financial statements
Company directory
3
10
10
9
4
12
14
15
23

A collection of iconic wineries and
brands from New Zealand’s most
acclaimed wine regions
made by
land &
hand
Each with a unique story of New Zealand to tell, our wineries
are linked by a common unrelenting purpose; to make great
wine that people love to drink around the world
– made by land & hand.
FOLEY WINES | HALF YEARLY REPORT
1

Martinborough Vineyard
Martinborough
Te Kairanga
Martinborough
Vavasour
Awatere Valley, Marlborough
Grove Mill
Wairau Valley, Marlborough
Our wineries & distillery
Lighthouse Gin
Martinborough
Mt Difficulty
Central Otago
FOLEY WINES | HALF YEARLY REPORT
2

Bottled sales
revenue
Operating
earnings
Export cases
Half year
highlights
Continuous momentum
$21.1m
+ 13.8%
Profit for period
after tax
Operating
cash flow
Completion of Mt Difficulty purchase on
3 January 2019
Lion NZ Ltd subscribed for shares in FWL
$2.387m
+ 145.8%
210,000 dozen
+ 46.8%
$1.672m
+ 461%
$4.936m
+ 17.2%
FOLEY WINES | HALF YEARLY REPORT
3

CEO’s
summary
Operating performance
The first six months results reflect the continued progress the company
is making, both in terms of financial performance and in completing
two key strategic initiatives outlined over the last 12 to 18 months.
The completion of the Mt Difficulty purchase was extremely satisfying
against a background of significant uncertainty with the gaining of OIO
approval. However our tenacity paid off and the Government approved
the transaction in December 2018. As a consequence of this approval,
we were delighted that Lion NZ Ltd (Lion) subscribed for their
shareholding in our company.
The partnership with Lion is a critical component of our growth
strategy in New Zealand. The initial period of the partnership is 10
years which enables us to work together to formulate a long term
strategy of building our brands in New Zealand.
The financial results show an improved performance across the board.
Operating earnings (or underlying profit) is a key metric we focus on
due to the complexities around the accounting standards in terms of fair
value adjustments. We believe that focussing on operating earnings
gives our investors the best metric when comparing one year with
another.
In the first six months our operating profit of $2.387m was up 145.8%
compared with the previous year. Operating cash flow of $4.936m was
up 17.2% as a result of improved sales in the period.
Profit for the period net of tax attributable for the shareholders was
$1.672m, up 461% compared with $0.298m the previous year.
FOLEY WINES | HALF YEARLY REPORT
4

Australia
74,000 cases
+45 %
USA/Canada
75,000 cases
+65%
UK/Europe
49,000 cases
+41%
Rest of world
11,000 cases
+0%
Export
case sales
FOLEY WINES | HALF YEARLY REPORT
5

Sales
performance
Export sales growth
Our overall export cases (packaged) shipped grew by 46.8% for the
period. This compares very favourably to recently published data from
New Zealand Wine Growers indicating that packaged wine export
volumes for the industry declined by 0.5%.
It is particularly pleasing to see our relationships with trading partners
in key markets continue to gain strength. This is testament to two key
factors. First and foremost is the quality of our world-class portfolio,
which is gaining attention world-wide. Secondly, we now have the
ability to supply brands from our five wineries and distillery, across
three acclaimed regions, in one shipment. For trading partners who
increasingly want to reduce the number of suppliers they deal with,
having one point of contact for such a diverse, high quality portfolio
offers real value.
In January it was resolved to consolidate all our USA business to Foley
Family Wines Inc. (FFW USA), a business owned by Bill Foley and his
family. This represents an exciting new era for our brands with access
to over 150 sales personnel employed by the Foley Group in the USA,
plus the addition of two new dedicated personal committed to our New
Zealand portfolio. Mt Difficulty will also transition to FFW USA during
the next period. The USA represents a critical market for us and we are
very optimistic about what we can achieve with access to this
significant network.
FOLEY WINES | HALF YEARLY REPORT
6

New Zealand – in line
with expectations
59,000 dozen, -25%.
Our New Zealand performance reflected disruption as we moved the
majority of our business to Lion and is in line with expectations. In our
annual report we stated that we needed to implement a new pricing
and promotional strategy in New Zealand when Lion was appointed.
We are pleased to report that while our volume has decreased by 25%
for the first six months our margin per case from New Zealand sales is
up 100%.
We expect it will take some time to rebuild our volume to previous
levels. However, we have transitioned from a box moving mentality to
one of long-term brand building. Once we do achieve our previous
level of New Zealand sales it will materially affect our financial
performance.
Page 22 sets out the breakdown of the consideration for Mt Difficulty.
Mt Difficulty case sales for the six months ended 31 December was
41,000 at average case realisation of $150 (excluding excise tax).
Please note these case sales are not included within our financials.
At the time of due diligence it was estimated that Mt Difficulty would
generate EBITDA in the range of $5m to $6m. While some time has
elapsed since this work was completed, we do not have any reason to
think that this isn’t achievable for the year ended 30 June 2020.
Naturally exchange rates, 2019 harvest and timing of the cellar door
redevelopment are factors to be considered.
Mt Difficulty
Sales
performance
FOLEY WINES | HALF YEARLY REPORT
7

Positive outlook on vintage,
volumes and earnings.
Outlook
We are pleased to report that the wineries are empty going into harvest
with no holdover wines as a result of strong sales. This means we have
the ability to maximise the winery capacity, which will have a positive
impact on cost of goods.
Our teams in all regions are expecting high quality fruit at volumes
which will allow us to fill our wineries. While there are some reports of
concerns in the industry regarding a lack of water having a bearing on
yields, we are in a good position in terms of water management.
In terms of earnings guidance, we have already achieved 87% of the
full year underlying earnings of the previous year of $2.752m. On this
basis we are working hard to achieve approximately $5m of operating
earnings in the full year inclusive of all costs associated with the
Mt Difficulty transaction. We must be mindful that exchange rates can
have a significant affect and in particular the Australian dollar has
adversely affected profitability in recent times.
FOLEY WINES | HALF YEARLY REPORT
8

Financial statements
FOLEY WINES LIMITED | HALF YEARLY REPORT

Income
statement
For the six months ended 31 December 2018
Unaudited
6 Months
31 Dec
2018
Group
Audited
12 Months
30 Jun 2018
Group
Restated
Unaudited
6 Months
31 Dec
2017
Group
Note$’000$’000$’000
Revenue
323,15342,07820,423
Expenses
Cost of sales
(16,105)(30,622)(15,098)
Selling, marketing and promotion expenses
(2,172)(4,721)(2,317)
Administration and corporate governance expenses
(1,453)(2,491)(1,194)
Non-recurring expenses
3(563)(375)(227)
Expenses excluding interest
(20,293)(38,209)(18,836)
Profit before interest, impairment, revaluations
and income tax
2,8603,8691,587
Interest revenue
161-
Interest expense
4(519)(1,081)(550)
Net finance costs
(503)(1,080)(550)
Profit before impairment, revaluations and
income tax
2,3572,7891,037
Impairment
Impairment of trade and other receivables
---
Impairment of inventory
30(37)(66)
Profit before revaluations and income tax
2,3872,752971
Revaluation gains and losses
Unrealised gain/(loss) in fair value of financial
asset/liabilities
9201(229)(132)
Unrealised (loss)/gain on harvested grapes
-1,084-
Realised reversal of (gain)/loss on harvested grapes
(265)(812)(425)
Revaluation of property, plant & equipment
-(153)-
Profit before income tax
32,3232,642414
Income tax expense
(651)(837)(116)
Profit for the period net of tax, attributable to
Shareholders of the Parent Company
1,6721,805298
Basic Earnings per share cps (after tax)
53.103.460.57
Diluted Earnings per share cps (after tax)
52.713.000.50
FOLEY WINES LIMITED | HALF YEARLY REPORT
9
These financial statements should be read in conjunction with the Notes to the financial statements on pages 15 to 22

Statement of
comprehensive
income
Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
Note$’000$’000$’000
Profit for the period1,6721,805298
Other comprehensive income:
Items that will not be reclassified to profit or
loss:
Revaluation of property, plant and equipment
-3,701-
Income tax on items taken directly to or
transferred from equity
-(601)-
Other comprehensive income for the
period, net of tax
-3,100-
Total comprehensive income for the
period, net of tax
1,6724,905298
Fully Paid
Ordinary
Shares
Asset
Revaluation
Reserve
Retained
Earnings
Total
Note$’000
$’000
$’000$’000
Unaudited 6 Months 31 December 2018 Group
Equity at 1 July 2018
66,51813,33714,62794,482
Profit for the period
--1,6721,672
Other comprehensive income for the period
----
Total comprehensive income/(expense)
for the period
--1,6721,672
Distributions to owners
6--(1,590)(1,590)
Contributions by owners
720,000---
Transactions with owners during period
--(1,590)(1,590)
Added to equity during the period
--8282
Equity at 31 Dec 2018
86,51813,33714,709114,564
Dividends paid per share cps
63.0
Statement of
changes in
equity
For the six months ended 31 December 2018
For the six months ended 31 December 2018
10
These financial statements should be read in conjunction with the Notes to the financial statements on pages 15 to 22
FOLEY WINES LIMITED | HALF YEARLY REPORT

Statement of
changes in
equity (continued)
Fully Paid
Ordinary
Shares
Asset
Revaluation
Reserve
Retained
Earnings
Total
Note$’000
$’000
$’000$’000
Audited 12 Months 30 June 2018
Group
Equity at 1 July 2017
66,51810,20214,42491,144
Profit for the period
--1,8051,805
Other comprehensive income for the
period
-3,135(35)3,100
Total comprehensive income for the
year
-3,1351,7704,905
Distribution to owners
6--(1,567)(1,567)
Contributions by owners
7----
Transactions with owners during
year
--(1,567)(1,567)
Added to equity during the year
-3,1352033,338
Equity at 30 June 2018
66,51813,33714,62794,482
Dividends paid per share cps
63.0
Unaudited 6 Months 31 December
2017 Group
Equity at 1 July 2017
66,51810,20214,42491,144
Profit for the period
--298298
Other comprehensive income for the
period
----
Total comprehensive
income/(expense) for the period
--298298
Distributions to owners
6--(1,567)(1,567)
Contributions by owners
7----
Transactions with owners during
period
--(1,567)(1,567)
Added to equity during the period
--(1,269)(1,269)
Equity at 31 Dec 2017
66,51810,20213,15589,875
Dividends paid per share cps
63.0
For the six months ended 31 December 2018
11
These financial statements should be read in conjunction with the Notes to the financial statements on pages 15 to 22
FOLEY WINES LIMITED | HALF YEARLY REPORT

Statement of
financial position
Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
Note$’000$’000$’000
CURRENT ASSETS
Cash and cash equivalents24,4432,7681,589
Trade and other receivables8,2709,0438,335
Other financial assets111-34
Inventories23,03630,20725,105
Biological work in progress4,2208734,035
Current tax assets-67424
Prepaid expenses840468779
60,92043,42640,301
NON-CURRENT ASSETS
Property, plant and equipment74,25574,63471,047
Intangible assets13,05313,05313,053
Deferred tax assets128128112
87,43687,81584,212
TOTAL ASSETS148,356131,241124,513
For the six months ended 31 December 2018
12
These financial statements should be read in conjunction with the Notes to the financial statements on pages 15 to 22
FOLEY WINES LIMITED | HALF YEARLY REPORT

Statement of
financial position
(continued)
Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
Note$’000$’000$’000
CURRENT LIABILITIES
Trade and other payables2,2324,9032,793
Loans and borrowings1,0001,0021,000
Convertible notes10,90010,90010,900
Current tax liabilities294--
Other financial liabilities884-
14,43416,88914,693
NON-CURRENT LIABILITIES
Loans and borrowings7,5008,0008,500
Other financial liabilities-1435
Deferred tax liabilities11,85811,85611,410
19,35819,87019,945
TOTAL LIABILITIES33,79236,75934,638
EQUITY
Share capital786,51866,51866,518
Reserves13,33713,33710,202
Retained earnings14,70914,62713,155
TOTAL EQUITY114,56494,48289,875
TOTAL LIABILITIES AND EQUITY148,356131,241124,513
For the six months ended 31 December 2018
13
These financial statements should be read in conjunction with the Notes to the financial statements on pages 15 to 22
FOLEY WINES LIMITED | HALF YEARLY REPORT

Statement of
cash flows
Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
Note$’000$’000$’000
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash was provided from (applied to)
Receipts from customers
24,53444,59921,851
Insurance proceeds
602994994
Interest received
161-
Payments to suppliers and employees
(19,410)(35,670)(16,951)
Interest and other costs of finance paid
(519)(1,081)(550)
Income tax paid
(287)(1,668)(1,134)
Net cash flow from operating activities
84,9367,1754,210
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash was provided from (applied to)
Sale of property, plant and equipment
15175
Purchase of property, plant and equipment and
biological assets
(1,184)(2,121)(821)
Net cash flow from investing activities
(1,169)(2,104)(816)
CASH FLOW FROM FINANCING
ACTIVITIES
Cash was provided for (applied to)
Issue of equity share capital
20,000--
Dividends paid
(1,590)(1,567)(1,567)
Loans repaid
(502)(999)(501)
Net cash flow from financing activities
17,908(2,566)(2,068)
Net increase in cash held
21,6752,5051,326
Cash and cash equivalents at beginning of period
2,768263263
Cash and cash equivalents at end of period
24,4432,7681,589
Comprising: Cash and cash equivalents
24,4432,7681,589
24,4432,7681,589
For the six months ended 31 December 2018
14
These financial statements should be read in conjunction with the Notes to the financial statements on pages 15 to 22
FOLEY WINES LIMITED | HALF YEARLY REPORT

Notes to financial statements
FOLEY WINES | HALF YEARLY REPORT

Notes to the
financial statements
1. ACCOUNTING PERIOD
The unaudited financial statements presented are for Foley Wines Limited (“the Company”, “the
Parent”) and its subsidiaries (together referred to as “the Group”) and cover the six month period
to 31 December 2018. These condensed financial statements have been prepared in accordance
with NZ IAS 34 Interim Financial Statements and should be read in conjunction with Foley Family
Wines Limited’s Annual Report for the year ended 30 June 2018. The financial statements were
authorised for issue by the Directors on 27 February 2019.
2. ACCOUNTING POLICIES
Thesameaccountingpoliciesandmethodsofcomputationarefollowedintheinterimfinancial
statementsaswerefollowedin theannualfinancialstatementsfortheyearended30June2018
withtheexceptionof taxation.
Taxation
Incometaxexpensehasbeenrecordedinthesefinancialstatementsonthebasisof28%of
profit/(loss)beforeincometax. Anydeferredbenefitshavenotbeenbroughtto account. Thisis
consistentwiththeprioryear.
Therehavebeennochangesin accountingpoliciesduringtheperiod.
For the six months ended 31 December 2018
15
FOLEY WINES LIMITED | HALF YEARLY REPORT

Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Restated
Unaudited
6 Months
31 Dec 2017
Group
$’000$’000$’000
3. PROFIT FOR THE PERIOD
Included in profit before income tax for the period
are the following:
REVENUE:
Sales revenue – sale of goods – bottled wine21,13738,08418,574
Sales revenue - other1,4143,9941,849
Total sales revenue22,55142,07820,423
Other revenue – insurance proceeds602--
23,15342,07820,423
EXPENSES:
Depreciation1,4592,6541,420
Directors’ fees7714780
Employee benefits expense:
- Short-term employee benefits
3,0086,4212,964
Excise duty and HPA (ALAC) levy1,6063,8392,103
Fees paid to auditors (PwC):
- Audit of the financial statements (fees and
disbursements)
377136
Non-recurring expenses
-Mergers and acquisitions100375227
-Insurance claim related expenses425--
-Capital raising costs38--
Notes to the
financial statements
(continued)
For the six months ended 31 December 2018
4. INTEREST EXPENSE
Loan interest and other costs of finance paid5191,081550
16
FOLEY WINES LIMITED | HALF YEARLY REPORT

5. EARNING PER SHARE
Basic Earnings per share ($)3.103.460.57
Thecalculationis basedonNZIFRSearningsoftheGroupof$1,672,000(30Jun18$1,805,000;
31Dec17$298.000)andtheweightedaverageof 53,880,519ordinarysharesonissueduringthe
period(30Jun1852,222,534;31Dec1752,222,534).
Diluted Earnings per share ($)2.713.000.50
Thecalculationis basedonNZIFRSearningsoftheGroupof$1,672,000(30Jun18$1,805,000;
31Dec17$298.000)andtheweightedaverageof 61,743,544ordinarysharesonissueduringthe
period(30Jun1860,085,559;31Dec1760,085,559).
Theweightedaveragenumberofordinarysharesforthepurposesofdilutedearningspershare
reconcilestotheweightedaveragenumberofordinarysharesusedinthecalculationofbasic
earningspershareasfollows:
31Dec2018
Number of
shares
30Jun2018
Number of
shares
31Dec2017
Number of
shares
Weighted average number of ordinary shares (Basic) 53,880,51952,222,53452,222,534
Convertible notes outstanding at period end7,863,0257,863,0257,863,025
Weighted average number of ordinary shares
(Diluted)
61,743,54460,085,55960,085,559
Notes to the
financial statements
(continued)
For the six months ended 31 December 2018
Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
$’000$’000$’000
17
FOLEY WINES LIMITED | HALF YEARLY REPORT

6. DIVIDENDS PAID PER SHARE
The calculation of dividends per share in respect of the interim 2019 period is based on the final
dividend for 2018 paid in September totalling $1,590,000 (30Jun18: $1,567,000; 31Dec17:
$1,567,000).
Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
$’000$’000$’000
7. SHARE CAPITAL
FULLY PAID UP ORDINARY SHARES
Balance at beginning of period66,51866,51866,518
Movements in share capital20,000--
Balance at end of period86,51866,51866,518
Number of fully paid ordinary shares65,736,14852,222,53452,222,534
There were 13,513,614 shares issued during the period at $1.48 per share (30Jun18 and
31Dec17: Nil) - 765,634 on 3 July 2018 under the Share Purchase Plan and 12,747,980 on
19 December 2018 as Share Placements.
Notes to the
financial statements
(continued)
For the six months ended 31 December 2018
18
FOLEY WINES LIMITED | HALF YEARLY REPORT

Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
$’000$’000$’000
8. NET CASH FLOW FROM OPERATING ACTIVITIES
PROFIT AFTER INCOME TAX FOR THE PERIOD1,6721,805298
NON-CASH ITEMS:
Depreciation1,4592,6541,420
Increase/(decrease) in deferred tax2(155)15
Impairment loss/(gain) recognised on trade and other
receivables
---
Impairment loss/(gain) recognised on inventories(30)3766
Adjustments resulting from revaluation of grapes265(272)425
Loss on disposal of property, plant and equipment8914-
Loss on asset revaluations-153-
1,7852,4311,926
MOVEMENTS IN WORKING CAPITAL BALANCES:
Trade and other receivables7735211,229
Inventories6,9362,6156,991
Biological work in progress(3,347)(167)(3,329)
Prepaid expenses(372)(165)(476)
Trade and other payables(2,671)582(1,528)
Other financial assets/liabilities(201)229132
Current tax assets/liabilities361(676)(1,033)
1,4792,9391,986
NET CASH FLOW FROM OPERATING ACTIVITIES4,9367,1754,210
Notes to the
financial statements
(continued)
For the six months ended 31 December 2018
9.FINANCIAL INSTRUMENTS
Change in fair value of financial assets/liabilities consists of:
Foreign currency forward contracts191(256)(143)
Foreign currency option contracts-(6)(5)
Interest rate swaps103316
201(229)(132)
19
FOLEY WINES LIMITED | HALF YEARLY REPORT

11. RELATED PARTY TRANSACTIONS
(a)Materialtransactionswithrelatedpartiesduringtheperiodaresetoutbelow:
i.SalesweremadetoFoleyFamilyWines,Inc., a 100%ownedsubsidiaryofFoleyFamily
WinesHoldings,Inc., theultimateparentof FoleyWinesLimited. Salesfortheperiodwere
$4,615,000fortheGroup(Jun18:$5,227,000;Dec17:$2,009,000).
ii.MarketingsupportserviceswereprovidedbyFoleyFamilyWinesInc., a 100%owned
subsidiaryof FoleyFamilyWinesHoldings,Inc., theultimateparentof FoleyWinesLimited.
Marketingsupportchargesfortheperiodwere$54,000fortheGroup(Jun18:$101,000;
Dec17:$53,000).
iii.Interestwaspaid/payableto FoleyFamilyWinesHoldings,NewZealandLimitedtheparent
oftheFoleyWinesLimitedundertheconvertiblenote. Interestpaid/payablefortheperiod
was$357,000fortheGroup(Jun18:$709,000;Dec17:$357,000).
iv.Salesweremadeto EuroVintageLimited,a 50%associateoftheparentcompanyofFoley
WinesLimited(until30November2018). Salesfortheperiodwere$1,569,000forthe
Group(Jun18:$12,980,000;Dec17:$6,902,000). Managementfeesandthefundingof
promotionalactivitysuchasbonusstockrelatingto thesesalesof $55,000werechargedby
EuroVintageduringtheperiod(Jun18:$1,628,000;Dec17:$766,000).Salesfrom
EuroVintagetotheGroupduringtheperiodtotalled$5,000(Jun18:$41,000;Dec17:
$4,000).
v.Salesweremadeto,andadministrationservicesprovidedto,WharekauhauCountryEstate
Limited,a luxurylodge74.6%ownedbyBillFoley,themajorityshareholderof theultimate
parent. Salesfortheperiodtotalled$13,000fortheGroup(Jun18:$33,000;Dec17:
$16,000)
. AdministrationChargesfortheperiodtotalled$1,000fortheGroup(Jun18:
$6,000;Dec17$3,000). AccommodationandfunctionfacilitiesprovidedbyWharekauhau
to theCompanyduringtheperiodtotalled$10,000(Jun18:$35,000;Dec17:$15,000).
vi.LighthouseGinproductwaspurchasedforglobaldistributionfromLighthouseDistillery
Limited,a companyownedbyMarkTurnbull,CEOandDirectorofFoleyWinesLimited.
Purchasesduringtheperiodtotalled$288,000(Jun18:$362,000;Dec17:$134,000).
Administrationservices,rental,electricityandcontractdistillingserviceswereprovidedto
LighthouseDistilleryLimitedduringtheperiodof$28,000(Jun18:$41,000;Dec17:
$21,000).
Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
$$$
10. NET TANGIBLE ASSETS
Net tangible assets per share1.541.561.47
Notes to the
financial statements
(continued)
For the six months ended 31 December 2018
20
FOLEY WINES LIMITED | HALF YEARLY REPORT

Unaudited
6 Months
31 Dec 2018
Group
Audited
12 Months
30 Jun 2018
Group
Unaudited
6 Months
31 Dec 2017
Group
$’000$’000$’000
11. RELATED PARTY TRANSACTIONS (CONTINUED)
(b) Amounts owing to related parties at balance date:
Foley Family Wines Inc.362727
Foley Family Wines Holdings, New Zealand Limited –
convertible note
10,90010,90010,900
EuroVintageLimited*-97205
Wharekauhau Country Estate Limited315
Lighthouse Distillery Limited573745
(c) Amounts owing from related parties at balance date:
Foley Family Wines Inc.2,6931,707941
EuroVintageLimited*-1,0962,091
Wharekauhau Country Estate Limited-65
Lighthouse Distillery Limited83124
31 Dec
2018
31 Dec
2018
30 June
2018
30 June
2018
31 Dec
2017
31 Dec
2017
NZ $1.00 =FWL BuyFWL SellFWL BuyFWL SellFWL BuyFWL Sell
Australian dollar0.94640.95400.91600.92120.90610.9117
United States dollar0.66740.67400.67240.67750.70550.7109
Great British pound0.52550.53070.51430.51840.52440.5286
Euro0.58280.58880.58170.58640.58990.5947
12. FOREIGN CURRENCY EXCHANGE RATES
The following spot foreign exchange rates have been applied at balance date:
Notes to the
financial statements
(continued)
For the six months ended 31 December 2018
*EuroVintageLimitedceasedtobea relatedpartyon30November2018whenFoleyFamily
WinesHoldings,NewZealandLimited,parentof FoleyWinesLimited,solditsshareholdingin that
company.
21
FOLEY WINES LIMITED | HALF YEARLY REPORT

$’000
Cash1
Tradeandotherreceivables381
Inventories8,612
Biologicalworkin progress2,569
Prepayments37
Property,plantandequipment24,229
Totalassetsacquired35,829
Tradeandotherpayables(247)
Deferredtax(1,076)
Otherfinancialliabilities(5,454)
Totalliabilitiesacquired(6,777)
Netassetsacquired
29,052
Goodwillonacquisition17,627
Totalnetassetsacquired46,679
Fundedasfollows:
Liabilities– Loansandborrowings26,679
Equity– Sharecapital
20,000
Total46,679
13.SUBSEQUENTEVENTS
On 3 January 2019 the Company completed its purchase of the assets and business of Mt
Difficulty Wines.
Based on a preliminary assessment the impact of this acquisition on the balance sheet is
estimated to be as follows:
TheOtherfinancialliabilitiesconsistsoftheFairValue(NetPresentValue)oftheNetWorking
CapitalAdjustmentAmountof$404,000requiredtobepaidin February2019andtheDeferred
Considerationof $5,200,000whichis dueto bepaidon3 July2020in accordancewiththeSale
andPurchaseAgreement.
Theaboveassessmentmaychangeasnotalloftheinformationrequiredtocompletethefull
assessmentforaudithasbeenreceivedat thedateof finalisingthisReport.
Noothermaterialeventshaveoccurredsincebalancedate.
Notes to the
financial statements
(continued)
For the six months ended 31 December 2018
22
FOLEY WINES LIMITED | HALF YEARLY REPORT

Company directory
& shareholder information
FOLEY WINES LIMITED | HALF YEARLY REPORT

DIRECTORSWP Foley, II (Chairman)
AJ Anselmi
PR Brock (appointed 1 November 2018)
AM Turnbull (CEO)
HEAD OFFICE ADDRESS
13 WaihopaiValley Road, RD 6, Blenheim 7276,
Marlborough,
New Zealand
Telephone +64 3 572 8200
Facsimile +64 3 572 8211
POSTAL ADDRESSPO Box 67, Renwick 7243, Marlborough, New Zealand
EMAILinfo@foleywines.co.nz
WEBSITES
www.foleywines.co.nz
www.grovemill.co.nz
www.vavasour.com
www.tekairanga.com
www.martinborough-vineyard.co.nz
NATURE OF BUSINESSProduction and distribution of wine
Directory
23
FOLEY WINES LIMITED | HALF YEARLY REPORT

AUDITORSPricewaterhouseCoopers, Auckland
SOLICITORSBell Gully, Auckland
BANKERSBank of New Zealand, Auckland
REGISTRATION NO.307139
REGISTERED OFFICE
13 WaihopaiValley Road, RD 6 Blenheim 7276,
Marlborough, New Zealand
SHARE REGISTER
Computershare Investor Services Limited
Level 2, 159 HurstmereRoad, Takapuna, Auckland
Private Bag 92119, Auckland 1020
Telephone +64 9 488 8777
Facsimile +64 9 488 8787
General enquiries can be directed to: enquiry@computershare.co.nz
(please quote CSN or shareholder number)
Managing your shareholding online
To change your address or payment instructions or view your
investment portfolio: www.computershare.co.nz/investorcentre
SHARE TRADING
NZX Main Board
Security Code “FWL”
24
Directory
AUGUST 2019Annual Report published
NOVEMBER 2019Annual Shareholders Meeting
Shareholder
information
FOLEY WINES LIMITED | HALF YEARLY REPORT

FOLEY WINES | HALF YEARLY REPORT
Investors who wish to join the Foley Investors Wine Club,
please email info@foleywines.co.nz

---

SIX MONTHS OF DELIVERING ON PROMISES

WEDNESDAY, FEBRUARY 27 2019 – The Foley Wines Limited (FWL) Half Yearly Report to
December 31 2018, published to the New Zealand Stock Exchange today, represents another period of
significant progress.

HIGHLIGHTS

• Bottled sales revenue $21.1m 13.8%
• Operating earnings $2.387m 145.8%
• Export Cases 210,000 dozen 46.8%
• Profit for period after tax $1.672m 461%
• Operating cash flow $4.936m 17.2%
• Completion of Mt Difficulty purchase on 3 January 2019
• Lion NZ Ltd subscribed for shares in FWL

Mark Turnbull, Foley Wines CEO said, “It’s satisfying to have delivered on our promises; the
purchase of Mt Difficulty, entering into a long term strategic partnership with Lion, and moving to the
NZX main board.”

“The NZX listing enables New Zealanders to participate in our business moving forward, which has
been Bill Foley’s intention since he began investing here.”

Packaged exports were up 46.8% with strong growth in Australia, the USA & Canada, and the UK &
Europe. This compared very favourably to recently published data from New Zealand Wine Growers
indicating that packaged wine export volumes for the industry declined by 0.5%.

“It is particularly pleasing to see our relationships with trading partners in key markets continue to
gain strength. Increasingly these customers want to reduce the number of suppliers they deal with, so
having one point of contact for such a diverse, high quality portfolio across three acclaimed regions
offers real value,” said Turnbull.

“Export growth is a key criteria for gaining overseas investment approvals and clearly we’re well on
our way to delivering this objective.”

Bill Foley, Chairman of Foley Wines said, “We now have a world-class portfolio of wines from New
Zealand. Over the past 12 months my team here in the USA has made some real progress and we are
focused on taking the New Zealand brands to a new level. We are taking on two dedicated personnel
in the USA to support our New Zealand growth strategy in addition to the over 150 sales staff I have
already in the USA”.

New Zealand performance is in line with expectations as a new pricing and promotional strategy is
implemented with Lion New Zealand. While New Zealand volume has decreased by 25% for the first
six months, margin per case from New Zealand sales is up 100%.

Turnbull said, “The partnership with Lion is a critical component of our growth strategy in New
Zealand. The initial period of the partnership is 10 years which enables us to work together to
formulate a long-term strategy of building our brands in New Zealand.”

- END -



- NOTES TO EDITORS -

About Foley Wines

Foley Wines is a collection of iconic wineries and brands from New Zealand’s most acclaimed wine
regions. Each with a unique story of New Zealand to tell, our wineries are linked by a common
unrelenting purpose; to make great wine that people love to drink around the world – Made by Land
& Hand.

Foley Wines is proud custodian of Martinborough Vineyard, Te Kairanga, Grove Mill, Vavasour,
Mt Difficulty and Lighthouse Gin.

---

Appendix 1 (NZX Main Board Listing Rule 10.3.1)
Half Year Preliminary Announcement


Attachments:
Media Release
Half Yearly Report to 31 December 2018.

Foley Wines Limited (“FWL”)
Results for announcement to the market

Basis of Report 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 23,153 13.4 %
Profit before revaluations
and income tax (“Operating
Earnings”)
$NZ 2,387 145.8 %
Operating profit before
interest, impairment,
revaluations, income tax and
depreciation (“Operating
EBITDA”)
$NZ 4,319 43.6 %
Reported Profit (loss) from
ordinary activities after tax
attributable to shareholders
(“Reported NPAT”)
$NZ 1,672

461.1 %

Profit/(loss) for the period net
of tax attributable to
shareholders
$NZ 1,672

461.1 %


Dividend Amount per security Imputed amount per security
Interim $NZ Nil $ Nil

Record Date N/A
Dividend Payment Date N/A

Current Reporting Period Prior Reporting Period
Net tangible assets per share $1.54 $1.47

Comments: 1. A full copy of the Half Yearly Report for the six months
ended 31 December 2018 is available on the FWL
web site, at: http://www.foleywines.co.nz.