DGL – Interim Results to 31 Dec 2019

Results for announcement to the market
Name of issuer Delegat Group Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$159,076
10%
Total Revenue $159,076 10%
Net profit from continuing
operations
$29,854 18%
Total net profit $29,854 18%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$3.65 $3.31
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the Executive Chairman’s Report appended for
Operating Performance and other key metric information.
The financial statements for the 6 months to 31 December 2018
have been restated following the adoption of “NZ IFRS 16:
Leases” on 1 July 2019.
Authority for this announcement
Name of person

authorised
to make this announcement
Murray Annabell
Contact person for this
announcement
Murray Annabell
Contact phone number + 64 9 359 7310
Contact email address Murray.annabell@delegat.com
Date of release through MAP

24/02/2020

Unaudited financial statements accompany this announcement.

Delegat Group Limited
Interim Report 2020

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
2
5
5
6
8
9
11
19
Contents

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.
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
2019.
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.
Operating Performance
1
A record Operating NPAT of $34.4 million was generated compared to $31.4
million for the same period the previous year. Operating EBIT of $53.5 million is
$3.5 million higher than for the same period the previous year (refer to table 1).
Delegat achieved Operating Revenue of $156.7 million on global case sales of
1,733,000 in the six month period. Revenue is up $13.7 million on the same period
last year due to the 10% increase in global case sales and the favourable impact of
foreign exchange rate changes.
The Group’s case sales performance and foreign currency rates achieved are
detailed in table 2.
Operating Gross Profit is up 5% on the same period last year. This is due to
the increased case sales and favourable impact of foreign exchange rate changes,
which have offset the unfavourable impact on Cost of Goods Sold from the lower
yielding 2019 vintage. Operating expenses (before NZ IFRS adjustments) at $29.1
million are $0.8 million higher compared to the same period the previous year.
This is due to the impact of a weaker New Zealand currency on the translation of
off-shore expenditure and an increase in people-related costs.
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption
of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
DELEGAT INTERIM REPORT 2020 EXECUTIVE CHAIRMAN’S REPORT
2
Dec 2019 Dec 2018 % change
Actual Actual vs 2018
NZ$ millions Restated*
Operating Revenue
1
156.7 143.0 10%
Operating Gross Profit
2
82.6 78.3 5%
Operating Gross Margin 53% 55%
Operating Expenses
3
(29.1) (28.3) -3%
Operating EBIT
4
53.5 50.0 7%
Operating EBIT % of Revenue 34% 35%
Interest and Tax (19.1) (18.6) -3%
Operating NPAT
4
34.4 31.4 10%
Operating NPAT % of Revenue 22% 22%
Operating EBITDA
4
64.2 60.1 7%
Operating EBITDA % of Revenue 41% 42%
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

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 $8.7 million
for the period (December 2018: write-down of $9.8 million);
• 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 $2.4 million (December 2018: write-up
of $1.3 million).
The adjustments, net of taxation, amount to a write-down of $4.5 million
(December 2018: write-down of $6.1 million).
Dec 2019 Dec 2018 % change
Actual Actual vs 2018
NZ$ millions Restated*
Operating NPAT 34.4 31.4 10%
Operating NPAT % of Revenue 22% 22%
NZ IFRS Fair Value Items
Biological Produce (Grapes)1 (8.7) (9.8) 11%
Derivative Instruments 2.4 1.3 85%
Total Fair Value Items (6.3) (8.5) 26%
Less: Tax 1.8 2.4 -25%
Fair Value Items after Tax (4.5) (6.1) 26%
Reported NPAT 29.9 25.3 18%
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.
Impact of Fair Value Adjustments
Table 3
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption
of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
DELEGAT INTERIM REPORT 2020 EXECUTIVE CHAIRMAN’S REPORT
3
Dec 2019 Dec 2018 % change
Case Sales (000s) Actual Actual vs 2018
UK, Ireland and Europe 601 469 28%
North America (USA and Canada) 722 640 13%
Australia, NZ and Asia Pacific 410 467 -12%
Total Cases 1,733 1,576 10%

Foreign Currency Rates
GB£ 0.5054 0.5138 2%
AU$ 0.9393 0.9301 -1%
US$ 0.6519 0.6787 4%
CA$ 0.8651 0.8789 2%
Table 2
Case Sales and Foreign Currency

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 2019
is reconciled to Operating Profit as detailed in table 4.
Cash Flow
The Group generated record Cash Flows from Operations of $35.5 million in
the current half-year, which is an increase of $12.3 million or 53% on the same
period last year. This increase is due to strong cash collections from customers
and lower net interest paid. A total of $12.7 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
$17.2 million to shareholders in dividends.
The Group having secured a $330.0 million syndicated senior debt facility in 2019
is well positioned to fund both its current operations as well as future capital
investment in both New Zealand and Australia. The Group’s Net Debt at 31
December 2019 amounted to $267.8 million, lower by $23.7 million compared
with the last half-year and well within the Group’s long-term bank debt facilities.
Looking Forward
The Group is on target to achieve global case sales for the full year of 3,240,000,
up 8% on last year. Based on the prevailing exchange rates, the Group forecasts a
2020 Operating Profit result in line with market consensus of $52.4 million.
JIM DELEGAT
EXECUTIVE CHAIRMAN
Notes:
1. EBIT means earnings before interest and tax. 2. NPAT means net profit after tax.
3. EBITDA means earnings before interest, tax, depreciation and amortisation.
NZ$ millions
Revenue 156.7 2.4 159.1 143.0 1.3 144.3
Cost of Sales (74.1) (8.7) (82.8) (64.7) (9.8) (74.5)
Gross Profit 82.6 (6.3) 76.3 78.3 (8.5) 69.8
Operating Expenses (29.1) – (29.1) (28.3) – (28.3)
EBIT
1
53.5 (6.3) 47.2 50.0 (8.5) 41.5
Interest and Tax (19.1) 1.8 (17.3) (18.6) 2.4 (16.2)
NPAT
2
34.4 (4.5) 29.9 31.4 (6.1) 25.3
EBIT
1
53.5 (6.3) 47.2 50.0 (8.5) 41.5
Depreciation 10.7 – 10.7 10.1 – 10.1
EBITDA
3
64.2 (6.3) 57.9 60.1 (8.5) 51.6
2019 Actual2018 Actual
Restated*
OperatingFair Value
Adjustment
ReportedOperatingFair Value
Adjustment
Reported
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption
of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
DELEGAT INTERIM REPORT 2020 EXECUTIVE CHAIRMAN’S REPORT
4
Table 4
Reconciliation of Reporting to
Operating Performance

Statement of Financial Performance
Unaudited
Dec 2019
6 Months
$000
Audited
June 2019
12 Months
$000
Restated*
Unaudited
Dec 2018
6 Months
$000
Restated*
Revenue 159,076 277,974 144,339
Profit before finance costs 47, 2 2 4 77,555 41,496
Finance costs 5,675 12,374 6,282
Profit before income tax 41,549 65,181 35,214
Income tax expense 11,695 18,386 9,944
Profit for the Period attributable
to Shareholders of the Parent Company 29, 8 5 4 46,795 25,270

Earnings Per Share
– Basic and fully diluted earnings
per share (cents per share) 29.52 46.27 24.99
Unaudited
Dec 2019
6 Months
$000
Audited
June 2019
12 Months
$000
Restated*
Unaudited
Dec 2018
6 Months
$000
Restated*
Profit after income tax 29, 8 5 4 46,795 25,270
Other comprehensive income that may
subsequently be classified to the profit and loss:
– Translation of foreign subsidiaries (157) (1,807) (1,698)
– Net gain on hedge of a net investment 169 1,283 1,154
– Income tax relating to components
of other comprehensive income (47) (359) (323)
Total comprehensive income for the period, net of tax 29, 819 45,912 24,403
Comprehensive income attributable to
Shareholders of the Parent Company 29, 819 45,912 24,403
Statement of Other Comprehensive Income
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
5
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
Statement of Changes in Equity
Share
Capital

$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings

$000
Total
Equity

$000
Audited balance at 30 June 2019 49,815 (3,581) 310,462 356,696
Changes in equity for the
period ended 31 December 2019
Other comprehensive income
– Translation of foreign subsidiaries – (157) – (157)
– Net gain on hedge of a net investment – 169 – 169
– Income tax relating to components
of other comprehensive income – (47) – (47)
Total other comprehensive income – (35) – (35)
– Net profit for the period – – 29,854 29, 8 5 4
Total comprehensive income for the period – (35) 29,854 29, 819
Equity Transactions
– Dividends paid to shareholders – – (17,215) (17, 2 15 )
Unaudited balance at 31 December 2019 49,815 (3,616) 323,101 369, 3 0 0

FOR THE PERIOD ENDED 31 DECEMBER 2019 (UNAUDITED)
Share
Capital

$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings

$000
Total
Equity

$000
Audited balance at 30 June 2018 49,815 (2,698) 278,844 325,961
Changes in equity for
the year ended 30 June 2019
Other comprehensive income
– Translation of foreign subsidiaries – (1,807) – (1,807)
– Net gain on hedge of a net investment – 1,283 – 1,283
– Income tax relating to components
of other comprehensive income – (359) – (359)
Total other comprehensive income – (883) – (883)
– Net profit for the year – – 46,795 46,795
Total comprehensive income for the year – (883) 46,795 45,912
Equity Transactions
– Dividends paid to shareholders – – (15,177) (15,177)
Audited balance at 30 June 2019 49,815 (3,581) 310,462 356,696
FOR THE YEAR ENDED 30 JUNE 2019 (AUDITED) / *RESTATED
6
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

Statement of Changes in Equity continued
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
Share
Capital

$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings

$000
Total
Equity

$000
Audited balance at 30 June 2018 49,815 (2,698) 278,844 3 25,9 61
Changes in equity for
the period ended 31 December 2018
Other comprehensive income
– Translation of foreign subsidiaries – (1,698) – (1,698)
– Net gain on hedge of a net investment – 1,154 – 1,15 4
– Income tax relating to components
of other comprehensive income – (323) – (323)
Total other comprehensive income – (867) – (867)
– Net profit for the period – – 25,270 25,270
Total comprehensive income for the period – (867) 25,270 24,403
Equity Transactions
– Dividends paid to shareholders – – (15,177) (15,177)
Unaudited balance at 31 December 2018 49,815 (3,565) 288,937 3 3 5 ,18 7
FOR THE PERIOD ENDED 31 DECEMBER 2018 (UNAUDITED) /
*
RESTATED
7
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

Unaudited
Dec 2019
$000
Audited
June 2019
$000
Restated*
Unaudited
Dec 2018
$000
Restated*
Audited
June 2018
$000
Restated*
Equity
Share capital 49, 815 49, 815 49, 815 49, 815
Foreign currency translation reserve (3,616) (3,581) (3,565) (2,698)
Retained earnings 323,101 310,462 288,937 278,844
Total Equity 369, 3 0 0 356,696 335,187 325,961
Liabilities
Current Liabilities
Trade payables and accruals 26,300 32,311 27,069 32,883
Derivative financial instruments 3 ,10 3 2,960 2,076 3,020
Income tax payable 980 6,445 1,069 6,485
Lease liability 4,589 4,458 4,099 3,823
34,972 46,174 34,313 46,211
Non-Current Liabilities
Deferred tax liability 33,948 28,688 31,094 27,064
Derivative financial instruments 4,782 6,321 4,288 3,711
Interest-bearing loans and borrowings (secured) 275,771 275,989 298,528 285,754
Lease liability 80,299 81,971 84,502 85,086
394,800 392,969 418,412 401,615
Total Liabilities 429,772 439,143 452,725 447,826
Total Equity and Liabilities 799,072 795,839 787,912 773,787
Statement of Financial Position
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
Unaudited
Dec 2019
$000
Audited
June 2019
$000
Restated*
Unaudited
Dec 2018
$000
Restated*
Audited
June 2018
$000
Restated*
Assets
Current Assets
Cash and cash equivalents 7,9 6 8 5,647 6,994 4,264
Trade and other receivables 52, 613 39,984 52,717 42,612
Derivative financial instruments 2,098 1,088 949 –
Inventories 142,888 157,880 139,597 147,431
205,567 204,599 200,257 194,307
Non-Current Assets
Property, plant and equipment 5 2 9,127 525,183 519,620 510,528
Right-of-use assets 59, 4 52 61,107 63,522 64,289
Intangible assets 4,926 4,950 4,513 4,663
593,505 591,240 587,655 579,480
Total A ssets 799,072 795,839 787,912 773,787
For, and on behalf of, the Board who authorised the issue of the financial statements on
24 February 2020.
JN Delegat, Executive Chairman JA Freeman, Managing Director
8
DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2019

Unaudited
Dec 2019
6 Months
$000
Audited
June 2019
12 Months
$000
Restated*
Unaudited
Dec 2018
6 Months
$000
Restated*
Operating Activities
Cash was provided from
Receipts from customers 147,049 279,96 3 136,996
Net GST received 1,14 2 – 274
14 8 ,19 1 279,963 137,270
Cash was applied to
Payments to suppliers and employees 96,549 190,374 96,327
Net GST paid – 413 –
Net interest paid 4,227 12,497 6,117
Net income tax paid 11,94 5 17,114 11, 613
112,721 220,398 114,057
Net Cash Inflows from Operating Activities 35,470 59,565 23,213

Investing Activities
Cash was provided from
Proceeds from sale of property, plant and equipment 24 178 80
Dividends received 1 4 4
25 182 84
Cash was applied to
Purchase of property, plant and equipment 11, 537 30,393 17,196
Purchase of intangible assets 464 490 494
Capitalised interest paid 733 1,851 883
12,734 32,734 18,573
Net Cash Outflows from Investing Activities (12,709) (32,552) (18,489)
Statement of Cash Flows
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
Unaudited
Dec 2019
6 Months
$000
Audited
June 2019
12 Months
$000
Restated*
Unaudited
Dec 2018
6 Months
$000
Restated*
Financing Activities
Cash was provided from
Proceeds from borrowings 8,270 295,642 25,375
8,270 295,642 25,375
Cash was applied to
Dividends paid to shareholders 17, 2 0 2 15 ,169 15 ,16 5
Borrowing facility fees 989 – –
Repayment of borrowings 8,293 301,949 10,250
Repayment of lease liability 2,263 4,14 4 1,933
28,747 321,262 27,348
Net Cash Outflows from Financing Activities (20,477) (25,620) (1,973)
Net increase in Cash Held 2,284 1,393 2,751
Cash and cash equivalents at beginning of the year 5,647 4,264 4,264
Effect of exchange rate changes on
foreign currency balances 37 (10) (21)
Cash and Cash Equivalents at End of the Period 7,9 6 8 5,647 6,994
9
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

Unaudited
Dec 2019
6 Months
$000
Audited
June 2019
12 Months
$000
Restated*
Unaudited
Dec 2018
6 Months
$000
Restated*
Reconciliation of Profit for the Period with
Cash Flows from Operating Activities:
Reported profit after tax 29, 8 5 4 46,795 25,270
Add/(deduct) items not involving cash flows
Depreciation expense 10,689 20,469 10,144
Other non-cash items (6) (2, 281) (1, 369)
Net (gain)/loss on disposal of assets (73) 95 45
Movement in derivative financial instruments (2,406) 1,4 62 (1,316)
Movement in deferred tax liability 5,260 1,624 4,030
13,464 21,369 11,534

Movement in working capital balances are as follows:
Trade payables and accruals (6,011) (572) (5,814)
Trade and other receivables (12,629) 2,628 (10,105)
Inventories 14,992 (10,449) 7,834
Income tax (5,465) (4 0) (5,416)

Add items classified as investing
and financing activities
Capital purchases included
within trade payables and inventories 276 (16 6) (90)
Borrowing facility fees 989 – –
( 7, 8 4 8 ) (8,599) (13,591)
Net Cash Inflows from Operating Activities 35,470 59,565 23,213

Statement of Cash Flows continued
Unaudited
Dec 2019
6 Months
$000
Audited
June 2019
12 Months
$000
Restated*
Unaudited
Dec 2018
6 Months
$000
Restated*
Reconciliation of movement in Net Debt:
Opening balance at beginning of the year 270,342 281,490 281,490
Per statement of cash flows:
– (Repayments)/proceeds from borrowings (23) (6, 307) 15,125
– Net increase in cash held (2,284) (1,393) (2,751)
Foreign exchange movement (391) (2,690) (2,407)
Other non-cash movements 159 (758) 77
Closing balance at end of the Period 2 67, 8 0 3 270,342 291,534
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16: Leases on 1 July 2019. Refer to Note 1 of the financial statements.
The accompanying notes form part of these financial statements
10
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

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 2019 were
authorised for issue in accordance with a resolution of the Directors on 24 February 2020.
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.
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 16: Leases on 1 July 2019. Refer to the published
financial statements for the year ended 30 June 2019 for a complete listing of the Group
accounting policies.
On 1 July 2019, the Group adopted NZ IFRS 16: Leases, applying the fully retrospective
transition provision. NZ IFRS 16 is the new standard on the recognition, measurement,
presentation and disclosure of leases and supersedes NZ IAS 17: Leases. NZ IFRS 16 requires
lessees to account for all leases under a single on-balance sheet model (subject to certain
exemptions) in a similar way to finance leases under NZ IAS 17. A liability has been recognised
to pay rentals with a corresponding right-of-use asset, with interest and depreciation
recognised separately. The Group has adopted the low value asset exemption in respect of
its barrel leases, which continue to be expensed on a straight line basis over the lease terms.
Adoption of NZ IFRS 16 results in higher combined depreciation and interest expense than
the previously recognised operating expense in the early years of lease terms. The difference
over the full life of each lease will be nil and there is no impact on cash flows. 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 2019 and 31 December
2018 have been restated. The effect on the Group’s financial statements of the adoption of
NZ IFRS 16 has been demonstrated in the following tables:

Notes to the Financial Statements
11
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000

Revenue 2 7 7,9 74 – 277,974 144,339 – 144,339
Profit before finance costs 7 7,9 8 3 (428) 77,555 41,365 131 41,496
Finance costs 12,025 349 12,374 6,100 182 6,282
Profit before income tax 65,958 (777) 65,181 35,265 (51) 35,214
Income tax expense 18,598 (212) 18,386 9,955 (11) 9,944
Profit for the Period
attributable to Shareholders
of the Parent Company 47, 3 6 0 (565) 46,795 25,310 (40) 25,270

Earnings Per Share
– Basic and fully diluted earnings
per share (cents per share) 46.83 (0.56) 46.27 25.03 (0.04) 24.99
31 DECEMBER 201831 DECEMBER 201830 JUNE 201930 JUNE 2019
Impact on the Statement of Other Comprehensive IncomeImpact on the Statement of Financial Performance
Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000

Profit after income tax 47, 3 6 0 (565) 46,795 25,310 (40) 25,270
Other comprehensive income
that may subsequently be
classified to the profit and loss:
– Translation of foreign
subsidiaries (1,812) 5 (1,807) (1,703) 5 (1,698)
– Net gain on hedge of a net
investment 1,283 – 1,283 1,154 – 1,154
– Income tax relating to
components of other
comprehensive income (359) – (359) (323) – (323)
Total comprehensive income
for the period, net of tax 46,472 (560) 45,912 24,438 (35) 24,403
Comprehensive income
attributable to Shareholders
of the Parent Company 46,472 (560) 45,912 24,438 (35) 24,403
Notes to the Financial Statements continued
12
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000

Equity
Share capital 49, 815 – 49,815 49,815 – 49,815 49,815 – 49,815
Foreign currency translation reserve (3,586) 5 (3,581) (3,570) 5 (3,565) (2,698) – (2,698)
Retained earnings 328,255 (17,793) 310,462 306,205 (17,268) 288,937 296,072 (17,228) 278,844
Total Equity 374, 4 8 4 (17,788) 356,696 352,450 (17,263) 335,187 343,189 (17,228) 325,961

Liabilities
Current Liabilities
Trade payables and accruals 32,344 (33) 32,311 27,116 (47) 27,069 32,941 (58) 32,883
Derivative financial instruments 2,960 – 2,960 2,076 – 2,076 3,020 – 3,020
Income tax payable 6,445 – 6,445 1,069 – 1,069 6,485 – 6,485
Lease liability – 4,458 4,458 – 4,099 4,099 – 3,823 3,823
41,749 4,425 46,174 30,261 4,052 34,313 42,446 3,765 46,211
Non-Current Liabilities
Deferred tax liability 35,588 (6,900) 28,688 37,792 (6,698) 31,094 33,754 (6,690) 27,064
Derivative financial instruments 6,321 – 6,321 4,288 – 4,288 3,711 – 3,711
Interest-bearing loans and borrowings (secured) 275,989 – 275,989 298,528 – 298,528 285,754 – 285,754
Lease liability – 81,971 81,971 – 84,502 84,502 – 85,086 85,086
3 17, 8 9 8 75,071 392,969 340,608 77,804 418,412 323,219 78,396 401,615
Total Liabilities 359,6 47 79,496 439,143 370,869 81,856 452,725 365,665 82,161 447,826
Total Equity and Liabilities 7 3 4 ,131 61,708 795,839 723,319 64,593 787,912 708,854 64,933 773,787
30 JUNE 201831 DECEMBER 201830 JUNE 2019
Impact on the Statement of Financial Position
Notes to the Financial Statements continued
13
DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2019

Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000

Assets
Current Assets
Cash and cash equivalents 5,647 – 5,647 6,994 – 6,994 4,264 – 4,264
Trade and other receivables 40,014 (30) 39,984 52,732 (15) 52,717 42,635 (23) 42,612
Derivative financial instruments 1,088 – 1,088 949 – 949 – – –
Inventories 15 7, 8 5 8 22 157,880 139,149 448 139,597 147,431 – 147,431
204,607 (8) 204,599 199,824 433 200,257 194,330 (23) 194,307
Non-Current Assets
Property, plant and equipment 524, 574 609 525,183 518,982 638 519,620 509,861 667 510,528
Right-of-use assets – 61,107 61,107 – 63,522 63,522 – 64,289 64,289
Intangible assets 4,950 – 4,950 4,513 – 4,513 4,663 – 4,663
529,524 61,716 591,240 523,495 64,160 587,655 514,524 64,956 579,480
Total A ssets 7 3 4 ,131 61,708 795,839 723,319 64,593 787,912 708,854 64,933 773,787
30 JUNE 201831 DECEMBER 201830 JUNE 2019
Impact on the Statement of Financial Position continued
Notes to the Financial Statements continued
14
DELEGAT GROUP LIMITED AND SUBSIDIARIES. AS AT 31 DECEMBER 2019

31 DECEMBER 201831 DECEMBER 201830 JUNE 201930 JUNE 2019
Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Operating Activities
Cash was provided from
Receipts from customers 279,963 – 279,963 136,996 – 136,996
Net GST received – – – 274 – 274
279,963 – 279,963 137,270 – 137,270
Cash was applied to
Payments to suppliers
and employees 194,875 (4,501) 190,374 98,449 (2,122) 96,327
Net GST paid 413 – 413 – – –
Net interest paid 12 ,14 0 357 12,497 5,928 189 6,117
Net income tax paid 17,114 – 17,114 11,613 – 11,613
224,542 (4,144) 220,398 115,990 (1,933) 114,057
Net Cash Inflows
from Operating Activities 55,421 4,144 59,565 21,280 1,933 23,213
Investing Activities
Cash was provided from
Proceeds from sale of
property, plant and equipment 178 – 178 80 – 80
Dividends received 4 – 4 4 – 4
182 – 182 84 – 84
Cash was applied to
Purchase of property,
plant and equipment 30,393 – 30,393 17,196 – 17,196
Purchase of intangible assets 490 – 490 494 – 494
Capitalised interest paid 1,851 – 1,851 883 – 883
32,734 – 32,734 18,573 – 18,573
Net Cash Outflows
from Investing Activities (32,552) – (32,552) (18,489) – (18,489)
Impact on the Statement of Cash Flows
Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Financing Activities
Cash was provided from
Proceeds from borrowings 295,642 – 295,642 25,375 – 25,375
295,642 – 295,642 25,375 – 25,375
Cash was applied to
Dividends paid to shareholders 15 ,16 9 – 15,169 15,165 – 15,165
Repayment of borrowings 301,949 – 301,949 10,250 – 10,250
Repayment of lease liability – 4,144 4,144 – 1,933 1,933
3 17,118 4,144 321,262 25,415 1,933 27,348
Net Cash Outflows
from Financing Activities (21,476) (4,144) (25,620) (40) (1,933) (1,973)


Net increase in Cash Held 1,393 – 1,393 2,751 – 2,751
Cash and cash equivalents at
beginning of the year 4,264 – 4,264 4,264 – 4,264
Effect of exchange rate changes
on foreign currency balances (10) – (10) (21) – (21)
Cash and Cash Equivalents
at End of the Period 5,647 – 5,647 6,994 – 6,994
Notes to the Financial Statements continued
15
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Reconciliation of Profit for
the Period with Cash Flows
from Operating Activities:
Reported profit after tax 47, 3 6 0 (565) 46,795 25,310 (40) 25,270
Add/(deduct) items
not involving cash flows
Depreciation expense 15,581 4,888 20,469 7,731 2,413 10,144
Other non-cash items (2,302) 21 (2,281) (1,382) 13 (1,369)
Net loss on disposal of assets 95 – 95 45 – 45
Movement in derivative
financial instruments 1,462 – 1,462 (1,316) – (1,316)
Movement in deferred tax liability 1,834 (210) 1,624 4,038 (8) 4,030
16,670 4,699 21,369 9,116 2,418 11,534
Movement in working capital
balances are as follows:
Trade payables and accruals (597) 25 (572) (5,825) 11 (5,814)
Trade and other receivables 2,621 7 2,628 (10,097) (8) (10,105)
Inventories (10,427) (22) (10,449) 8,282 (448) 7,834
Income tax (40) – (40) (5,416) – (5,416)

Add items classified as
investing and
financing activities
Capital purchases included within
trade payables and inventories (166) – (166) (90) – (90)
(8,609) 10 (8,599) (13,146) (445) (13,591)
Net Cash Inflows
from Operating Activities 55,421 4,144 59,565 21,280 1,933 23,213
Impact on the Statement of Cash Flows continued
31 DECEMBER 201831 DECEMBER 201830 JUNE 201930 JUNE 2019
Audited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Unaudited
Previously
Reported
$000
Unaudited
Adoption of
NZ IFRS 16
$000
Unaudited
Restated

$000
Reconciliation of movement
in Net Debt:
Opening balance at beginning
of the year 281,490 – 281,490 281,490 – 281,490
Per statement of cash flows:
– (Repayments)/proceeds
from borrowings (6,307) – (6,307) 15,125 – 15,125
– Net increase in cash held (1,393) – (1,393) (2,751) – (2,751)
Foreign exchange movement (2,690) – (2,690) (2,407) – (2,407)
Other non-cash movements (758) – (758) 77 – 77
Closing balance at
end of the Period 270,342 – 270,342 291,534 – 291,534
Notes to the Financial Statements continued
16
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

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.
Notes to the Financial Statements continued
For the 6 months
ended
31 December 2019
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
2019
$000
Operating income
External sales
2,8
33,281 38,285 53,777 71,009 3,346 (43,043) 156,655
Internal sales 140,307 – – – 2,500 (142,807) –
Fair value gain on
derivative financial
instruments 2,407 – – – – – 2,407
Dividend revenue 2 – – – 8 – 10
Interest revenue 3 1 – – – – 4
Total segment revenues
1
176,000 38,286 53,777 71,009 5,854 (185,850) 159,076

Operating expenses
Interest expense
3
5,040 32 3 54 546 – 5,675
Depreciation
4
9,073 294 90 271 961 – 10,689
Income tax expense
5
10,057 339 461 366 54 418 11,695
Segment profit 24,963 778 1,959 1,000 78 1,076 29, 8 5 4
Assets
Segment assets
6
736,022 24,651 26,519 32,794 90,981 (111,895) 799,072
Capital expenditure
7
11,925 258 3 3 263 – 12,452

Segment liabilities 405,876 9,920 17,307 19,567 45,129 (68,027) 429,772
17
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

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 2019 the Group recognised
accruals of $22,712,000 (30 June 2018: $23,137,000). During the six months ended 31 December 2019 $614,000 of
these accruals have been released (December 2018: $2,641,000).
3. Interest expense is net of any interest capitalised to long-term assets and inventory. During the period $733,000 (December
2018: $883,000) was capitalised to long-term assets. During the period $2,732,000 (December 2018 Restated*:
$2,742,000) was capitalised to inventory.
4. Depreciation expense presented above is gross of $8,988,000 (December 2018 Restated: $8,580,000), 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 2019 Delegat USA, Inc. had a single customer which comprised 10% or more of
Group sales amounting to $34,523,000.
9. 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.
10. Other segments’ assets include non-current assets of Barossa Valley Estate Pty Limited of $47,579,000 (December 2018:
$48,017,000) 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.
Notes to the Financial Statements continued
For the 6 months
ended
31 December 2018
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
2018
$000
Operating income

External sales
2,9
32,666 45,551 43,201 58,395 2,123 (38,930) 143,006
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
7,012 37 5 48 659 (1,479) 6,282
Depreciation
4
8,595 309 96 206 938 – 10,14 4
Income tax expense
5
8,239 421 374 306 527 77 9,94 4

Segment profit 20,324 966 1,569 861 1,350 200 25,270

Assets
Segment assets
6
731,814 27,574 24,047 29,570 101,962 (127,055) 787,912
Capital expenditure
7
17,790 12 2 64 755 – 18,623

Segment liabilities 446,749 14,094 18,366 18,193 38,611 (83,288) 452,725
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16:
Leases on 1 July 2019. Refer to Note 1 of the financial statements.
18
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

3. Expenses
Expenses by function have been categorised as follows:
Notes to the Financial Statements continuedDirectory
* The financial statements for the periods ended 30 June 2019 and 31 December 2018 have been restated following the adoption of NZ IFRS 16:
Leases on 1 July 2019. Refer to Note 1 of the financial statements.
Unaudited
Dec 2019
6 Months
$000
Audited
June 2019
12 Months
$000
Restated*
Unaudited
Dec 2018
6 Months
$000
Restated*
Cost of sales 82,817 143,828 74,489
Selling, marketing and promotion expenses 21,787 40,770 21,709
Corporate governance expenses 450 867 418
Administration expenses 6,489 13,492 6,006
Unrealised foreign exchange losses 309 – 221
Fair value loss on financial derivative instruments – 1,462 –
4. Acquisition and Disposal of Assets
During the six months ended 31 December 2019 the Group incurred total capital expenditure
of $12,452,000 (31 December 2018: $18,623,000). During the six months ended 31 December
2019 the Group disposed of property, plant and equipment with a net book value of $13,000
(31 December 2018: $125,000).
5. Capital Commitments
The estimated capital expenditure contracted for at 31 December 2019 but not provided for
is $14,061,000 (31 December 2018: $17,224,000).
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.
19
DELEGAT GROUP LIMITED AND SUBSIDIARIES. FOR THE SIX MONTHS ENDED 31 DECEMBER 2019