PGW announces positive earnings and dividend increase

26 February 2020




PGG Wrightson announces positive earnings and dividend
increase

Group Operating Performance
PGG Wrightson Limited (“PGW”)* announced today that the company has recorded a pleasing first half
result and is positive about its trading performance.

Chairman Rodger Finlay reported that Operating EBITDA** for the six months to 31 December 2019 was
$34.5 million, showing strong improvement over the comparative period. This includes the impact of the
new accounting lease standard which has led to an increase in Operating EBITDA of $10.9 million.
Excluding the new lease standard, Operating EBITDA at $23.7 million was 33% higher than the
comparative period.

PGW delivered a net profit after tax (NPAT) of $12.8 million from continuing operations.

Mr Finlay said, “These results have been driven by strong performances in our Fruitfed Supplies and
Livestock businesses, as well as a continued focus on reducing costs with the benefits of the restructure
starting to materialise and flow through into our reporting. We have resized our overhead structures to
fit the business and we will continue to look for efficiencies in our operations on an ongoing basis. As
part of this ongoing commitment to recalibrate our cost base, the Board has resolved to capture savings
through trimming the Board to five members and cutting some director fees. The combined effect of
these changes will result in director fee levels reducing by approximately 18% when calculated on an
annualised basis.”

“Taking into account the positive performance of the business the Board has resolved to pay a fully
imputed interim dividend of 9 cents per share (a 20% increase from the interim dividend payment in 2019
on a post share consolidation basis) on 3 April 2020 to shareholders on PGW’s share register as at 5pm
on 6 March 2020.”

Trading Performance

Agency
Trading in the first six months of the financial year was strong by comparison to the previous year. This
was assisted by generally conducive farming conditions across large parts of the country and a mild
spring that saw good feed in most regions. Commodity pricing for lamb and beef held and remained high
compared to historical levels. This has been welcomed by sheep and beef farmers as commodity pricing
has been driven by strong demand from China.

Confidence in the dairy sector remains subdued with access to bank funding having become more
constrained together with increased environmental and regulatory pressures creating a degree of
uncertainty for dairy farmers.

PGW Chief Executive Officer, Stephen Guerin commented that “There has been impressive growth in
PGW Livestock’s innovative Go livestock programmes. The Go programmes were only launched as a
pilot in 2015 and in December 2019 the millionth lamb was purchased. There has also been equally
notable growth in our Go-Beef counterpart. The investment in the Go range at 31 December 2019 was
$38.6 million, compared to $31.0 million last year. Go is an excellent example of how PGW can innovate
and develop products that meet the needs of our customers.”
$34.5m
Operating EBITDA
$12.8m
Net profit after tax
Per Share, Fully Imputed
9 cents
Interim dividend

Our Wool business traded solidly for the period with Operating EBITDA (excluding NZ IFRS 16) up 21%
compared to the same period last year. Grower bales sold are on par to last year while export volumes
are up 16% and there has been a continuing focus on reducing our costs. The Real Estate business is
experiencing reduced activity within the rural segment but has maintained its market position and share.

Retail & Water
Revenue for the Retail & Water group was up $5.0 million on the same period last year. Conditions in
the horticultural sector have remained positive and our market leading Fruitfed Supplies business has
performed well in servicing the sector and its continued growth. The buoyant conditions in horticulture
have been underpinned by solid export returns. This has in turn stimulated further investment and
development with larger enterprises diversifying their portfolios into the sector. Fruitfed Supplies remains
well placed to benefit from this growth as it builds on its reputation as the market leader in delivering
technical expertise, products and service.

Our Agritrade wholesale business has continued to demonstrate growth year on year with revenue up on
the same period last year by $3.4 million (+9.2%). This was achieved through growth in our existing
range in addition to product acquisition. We continue to source opportunities to provide distribution
services for international brand owners contracting with Agritrade to bring their products to market locally.

The implementation of the renewal programme for our network of Retail premises across the country has
continued with improvements and upgrades implemented at a number of rural towns as well as the
relocation of our head office to premises on the Christchurch International Airport campus.

Mr Guerin said that “It has been especially pleasing to see that the distribution arrangements between
PGW Rural Supplies and PGG Wrightson Seeds have continued to operate seamlessly since the
divestment of the Seed and Grain business in May last year. The seeds offering is an important part of
our business and I have been heartened by the way in which our respective teams have continued to
work together to deliver seeds and related inputs to our customers as we have always done.”

“Trading conditions have remained challenging in some pockets of the business with Mycoplasma bovis
having an impact on dairy and beef customers. Policy changes to the application of the Overseas
Investment Act and other environmental regulation have also had an impact on land values and
investment decisions, and capital investment into dairy operations in particular. Access to debt is
constrained.”

“The PGW Water business continues to face challenges given the lack of on-farm development. Changes
to government policy and the discontinuation of development of irrigation schemes together with
increasing environmental regulation have resulted in sluggish demand. Accordingly, revenue for the
Water business was back $7.1 million or 34%.”

Other
In August 2019 PGW made a capital distribution to shareholders of $234 million and declared a dividend
payment of 7.5 cents per share ($5.7 million). Following these payments PGW’s net interest-bearing
debt was $59.3 million as at 31 December 2019. A substantial portion of this debt ($38.6 million) relates
to PGW’s investment in our Go livestock products.

Capital expenditure for the six months to 31 December 2019 was $4.6 million ($2.9 million less than the
comparative period for the prior year). This spend has seen continued investment in information
technology including the bidr® online trading platform and in Retail technology.

The financial statements have been impacted by the introduction of the new lease accounting standard
(NZ IFRS 16). The impact of this change has reduced NPAT by $0.9 million. It is important to note that
this change has no net cash impact and is for financial reporting purposes only and is also excluded from
our bank covenant ratios and dividend calculations.

Outlook
Mr Finlay said “The Directors are pleased with the progress achieved in the first half and the financial
results.”

“At this early stage, the Directors currently expect Operating EBITDA from continuing businesses for the
full year to be around $30 million excluding changes due to the lease accounting standard. The Directors
note there are still many months of trading to complete and there could be some volatility to earnings due
to the impacts of COVID-19 on agricultural trade flows.”


Stephen Guerin
Chief Executive Officer
PGG Wrightson Limited

For media enquiry contact
Julian Daly
General Manager Corporate Affairs
PGG Wrightson Limited
Mobile: +64275533373

* All references to PGG Wrightson Limited refer to the company, its subsidiaries and interests in associates and jointly controlled
entities.
** Operating EBITDA: Earnings before net interest and finance costs, income tax, depreciation, amortisation, the results from
discontinued operations, fair value adjustments and non-operating items.
PGW has used non-GAAP profit measures when discussing financial performance in this document. For a comprehensive
discussion on the use of non-GAAP profit measures, please refer to the policy “Non-GAAP Accounting Information” available on our
website (
www.pggwrightson.co.nz).

---

Helping grow the country
Half Year Report
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

$34.5
m
$12.8m
OPERATING
EBITDA
NET PROFIT
AFTER TAX
INTERIM DIVIDEND
LOST TIME
INJURY LTI
FREQUENCY
RATE
STRONG IMPROVEMENT
OVER THE COMPARATIVE
YEAR’S PERIOD.
CONTINUED
DEDICATION TO
TRIALLING OF NEW
PRODUCTS FOR
NZ CONDITIONS.
CONTINUED
REVENUE
GROWTH
6 ACCREDITED
AGENCIES
9.2%
13.5%
$12.5m
BUY & SELL
9¢/share
IMPRESSIVE GROWTH
WITH THE MILESTONE
OF 1 MILLION LAMBS
PURCHASED UNDER
THE GO-LAMB
PROGRAMME
SURPASSED.
$
$34.5
m
$12.8m
OPERATING
EBITDA
NET PROFIT
AFTER TAX
INTERIM DIVIDEND
LOST TIME
INJURY LTI
FREQUENCY
RATE
STRONG IMPROVEMENT
OVER THE COMPARATIVE
YEAR’S PERIOD.
CONTINUED
DEDICATION TO
TRIALLING OF NEW
PRODUCTS FOR
NZ CONDITIONS.
CONTINUED
REVENUE
GROWTH
6 ACCREDITED
AGENCIES
9.2%
13.5%
$12.5m
BUY & SELL
9¢/share
IMPRESSIVE GROWTH
WITH THE MILESTONE
OF 1 MILLION LAMBS
PURCHASED UNDER
THE GO-LAMB
PROGRAMME
SURPASSED.
$
A wheat crop at Grant Trading Limited
in Methven, Canterbury.
Front cover: Kiwifruit orchard
in the Bay of Plenty.
1000000
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 1
PGG WRIGHTSON LIMITED

PGG Wrightson Limited (“PGW”)
delivered operating earnings before
interest, tax, depreciation and
amortisation (Operating EBITDA)
of $34.5 million for the first six
months ending 31 December 2019,
showing strong improvement over
the comparative year’s period. This
includes the impact of the new
accounting lease standard which has
led to an increase in Operating EBITDA
of $10.9 million.
Stephen Guerin
CHIEF EXECUTIVE OFFICER
Rodger Finlay
CHAIRMAN
CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S
REPORT
2 | PGG WRIGHTSON LIMITED

SAVINGS THROUGH
RESIZED BOARD
AND OVERHEAD
STRUCTURE
$
WE WILL CONTINUE TO
LOOK FOR EFFICIENCIES IN
OUR OPERATIONS.
21%
OUR WOOL
BUSINESS TRADED
SOLIDLY FOR THE
PERIOD WITH
OPERATING EBITDA
EXCLUDING NZ IFRS 16.
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 3
PGW delivered a net profit
after tax (NPAT ) of $12.8 million
from continuing operations.
These results have been driven by strong performances in our Fruitfed Supplies
and Livestock businesses, as well as a continued focus on reducing costs with
the benefits of the restructure starting to materialise and flow through into our
reporting. We have resized our overhead structures to fit the business and we will
continue to look for efficiencies in our operations on an ongoing basis. As part of
this ongoing commitment to recalibrate our cost base, the Board has resolved to
capture savings through trimming the Board to five members and cutting some
director fees. The combined effect of these changes will result in directors fee
levels reducing by approximately 18% when calculated on an annualised basis.
Agency
Trading in the first six months of the financial year was strong by comparison to the
previous year. This was assisted by generally conducive farming conditions across
large parts of the country and a mild spring that saw good feed in most regions.
Commodity pricing for lamb and beef held and remained high compared to
historical levels. This has been welcomed by sheep and beef farmers as commodity
pricing has been driven by strong demand from China.
Confidence in the dairy sector remains subdued with access to bank funding
having become more constrained together with increased environmental and
regulatory pressures creating a degree of uncertainty for dairy farmers. Whilst these
dynamics are not expected to change in the short term there has been a welcome
lift in dairy commodity pricing seen in the Global Dairy Trade auction which has
resulted in Fonterra upgrading its farm-gate milk price forecast for the 2019/2020
season to $7.00 –$7.60 per kg of milk solids.
There has been impressive growth in PGW Livestock’s innovative Go livestock
programmes. The Go programmes were only launched as a pilot in 2015 and in
December 2019 the millionth lamb was purchased. There has also been equally
notable growth in our Go-Beef counterpart. The investment in the Go range at 31
December 2019 was $38.6 million, compared to $31.0 million last year. Go is an
excellent example of how PGW can innovate and develop products that meet the
needs of our customers.
Our Wool business traded solidly for the period with Operating EBITDA (excluding
NZ IFRS 16) up 21% compared to the same period last year. Grower bales sold
are on par to last year while export volumes are up 16% and there has been a
continuing focus on reducing our costs. The Real Estate business is experiencing
reduced activity within the rural segment but has maintained its market position
and share.

4 | PGG WRIGHTSON LIMITED
FRUITFED SUPPLIES IS WELL
PLACED TO BENEFIT FROM
THE CONTINUED GROWTH
IN HORTICULTURAL
PRODUCTION AS IT BUILDS
ON ITS REPUTATION AS
THE MARKET LEADER IN
DELIVERING TECHNICAL
EXPERTISE, PRODUCTS AND
SERVICE TO THE SECTOR.
Fruitfed Supplies Technical
Horticultural Representative Nick
Kininmonth inspects strawberries
with Clayton Morgan of Hedgerows
Hydroponic Strawberries in Blenheim,
Marlborough, in October 2019.

$234.0m
IN AUGUST
WE MADE A
CAPITAL RETURN TO
SHAREHOLDERS OF
FROM PROCEEDS OF THE SALE
OF PGG WRIGHTSON SEEDS.
$
CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S REPORT
CONTINUED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 5
Retail & Water
Revenue for the Retail & Water group was up $5.0 million
on the same period last year. Conditions in the horticultural
sector have remained positive and our market leading Fruitfed
Supplies business has performed well in servicing the sector
and continued growth. The buoyant conditions in horticulture
have been underpinned by solid export returns. This has in
turn stimulated further investment and development with
larger enterprises diversifying their portfolios into the sector.
Fruitfed Supplies remains well placed to benefit from this
growth as it builds on its reputation as the market leader in
delivering technical expertise, products and service. In addition
to our nationwide Retail store network and on-farm servicing
we also have a network dedicated to the trialling of new
products under New Zealand conditions prior to commercial
release. This pipeline ensures that our customers continue to
have access to international leading innovation and brands to
optimise outcomes for their businesses.
Our Agritrade wholesale business has continued to
demonstrate growth year on year with revenue up on the
same period last year by $3.4 million (9.2%). This was achieved
through growth in our existing range in addition to product
acquisition. We continue to source opportunities to provide
distribution services for international brand owners contracting
with Agritrade to bring their products to market locally.
The implementation of the renewal programme for our network
of Retail premises across the country has continued with
improvements and upgrades implemented at a number of rural
towns as well as the relocation of our head office to premises
on the Christchurch International Airport campus.
It has been especially pleasing to see that the distribution
arrangements between PGW Rural Supplies and PGG Wrightson
Seeds have continued to operate seamlessly since the
divestment of the Seed and Grain business in May last year. The
seeds offering is an important part of our business and we have
been heartened by the way in which our respective teams have
continued to work together to deliver seeds and related inputs
to our customers as we have always done.
Trading conditions have remained challenging in some
pockets of the business with Mycoplasma bovis having an
impact on dairy and beef customers. Policy changes to
the application of the Overseas Investment Act and other
environmental regulation has also had an impact on land values
and investment decisions, and capital investment into dairy
operations in particular. Access to debt is constrained and this
has had the most significant impact on dairy related spend.
On the positive side of the ledger, at a macro level farming
returns remain strong and the outlook is generally positive for
horticulture, red meat and dairy.
The PGW Water business continues to face challenges given
the lack of on-farm development. Changes to government
policy and the discontinuation of development of irrigation
schemes together with increasing environmental regulations
have resulted in sluggish demand. Accordingly, revenue for the
Water business was back $7.1 million or 34%.
Other
In August 2019 PGW made a capital return to shareholders of
$234.0 million and declared a dividend of 7.5 cents per share
(approximately $5.7 million). Following these payments PGW’s
net interest-bearing debt was $59.3 million as at 31 December
2019. A substantial portion of this debt ($38.6 million) relates to
PGW’s investment in our Go livestock products.
Capital expenditure for the six months to 31 December 2019
was $4.6 million ($2.9 million less than the comparative period
for the prior year). This spend has seen continued investment
in information technology including the bidr® online trading
platform and in Retail technology.
The financial statements have been impacted by the
introduction of the new lease accounting standard (NZ IFRS 16).
The impact of this change has reduced NPAT by $0.9 million. It
is important to note that this change has no net cash impact
and is for financial reporting purposes only and is also excluded
from our bank covenant ratios and dividend calculations.

6 | PGG WRIGHTSON LIMITED
THERE HAS BEEN
IMPRESSIVE GROWTH
IN PGW LIVESTOCK’S
INNOVATIVE GO LIVESTOCK
PROGRAMMES.
GO IS AN EXCELLENT
EXAMPLE OF HOW PGW CAN
INNOVATE AND DEVELOP
PRODUCTS THAT MEET THE
NEEDS OF OUR CUSTOMERS.

Hereford bulls from Nick and Penny
France’s Okawa Poll Hereford Stud in
Mt Somers, Canterbury.

TO PREMISES ON
THE CHRISTCHURCH
INTERNATIONAL AIRPORT
CAMPUS
CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER’S REPORT
CONTINUED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 7
Dividend
Taking into account the positive performance of the business
the Board has resolved to pay a fully imputed 2020 interim
dividend of 9 cents per share (a 20% increase from the interim
dividend payment in 2019 on a post share consolidation basis)
on 3 April 2020 to shareholders on PGW’s share register as at
5pm on 6 March 2020.
Health, Safety, & Well-Being
We are continuing to invest in the development of our health
and safety culture by implementing improvement initiatives and
safer practices across our business. The Zero Incident Process (or
ZIP) programme across the business has assisted in delivering
results. Our lost time injury frequency rate, which dropped by 35
percent last financial year, has decreased a further 13.5 percent
in the last six months indicating a positive reduction in the
impacts of injuries. Our total recordable injury frequency rate
has decreased by 2.4 percent for the same period. Our reporting
of uncontrolled hazards as a proportion of all safety reports has
doubled compared with the same period in last year which is
also a positive sign.
A current example is the investment made to put our drivers
through a behavioural vehicle training programme to reinforce
safer driving habits. We are also developing our new Well-being
Strategy, which will explore opportunities for our people to
improve their mental and physical well-being, and their fitness
for the work that they do. These are significant commitments
and illustrates the proactive approach we want to take in looking
after our people.
Outlook
The Directors are pleased with the progress achieved in the first
half and the financial results.
At this early stage, Directors currently expect Operating EBITDA
from continuing businesses for the full year to be around $30
million excluding changes due to the lease accounting standard.
The Directors note there are still many months of trading to
complete and there could be some volatility to earnings due to
the impacts of COVID-19 on agricultural trade flows.
Governance
The PGW Board had one change in membership due to
retirement. Seah Lim Siang (Ronald) retired effective 31 August
2019. The Board expresses its sincere thanks for Ronald’s service
to the company.
Following this retirement the Board determined, as part of
its governance resizing, not to replace this role reducing the
number of directors to five.
Acknowledgements
Across the company’s business units our people have worked
with passion and commitment to deliver high levels of service
and quality of products that our valued customers have come to
expect.
On behalf of the Board and the management team, we extend
our thanks to the PGW staff, our customers and our suppliers
for their continued support and effort in contributing to our
success.
Rodger Finlay Stephen Guerin
Chairman Chief Executive Officer
RELOCATION
OF OUR HEAD
OFFICE

THE FINANCIAL STATEMENTS
CONTAINED ON PAGES 9 – 25
HAVE BEEN APPROVED BY THE
BOARD OF DIRECTORS ON
25 FEBRUARY 2020.
Rodger Finlay
Chairman
David Cushing
Director and Audit
Committee Chair
NOTES REGARDING
COMPARATIVE PERIODS
Our financial reporting changed as a result of the
sale of the Seed & Grain business to DLF Seeds
A/S on 1 May 2019. Note the following for the
comparative periods:
For the statement of profit or loss for the
comparative periods ended 31 December 2018
and 30 June 2019, we removed the impact of
Seed & Grain from the respective profit or loss
lines and disclosed Seed & Grain’s result in a
separate discontinued operations line.
For the statement of financial position as at 31
December 2018, we reclassified Seed & Grain’s
assets and liabilities to separate assets and
liabilities held for sale lines.
The statement of cash flows for the comparative
periods include the Seed & Grain business up until
the date of sale.
KEY
FINANCIAL
DISCL
OSURES
FOR THE SIX MONTHS ENDED
31 DECEMBER 2019
$
Perendale sheep from Snowdon
Station at auction in Windwhistle,
Canterbury.
8 | PGG WRIGHTSON LIMITED

HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 9
UNAUDITED AUDITED UNAUDITED
D
EC 2019*
J
UN 2019
D
EC 2018
NOTE $000 $000 $000
Continuing operations
Operating revenue 474,079 809,255 473,765
C
ost of sales
(353,486)

(589,714)

(355,226)
Gr
oss profit 120,593 219,541 118,539
Other income 117 241 (8)
Emplo
yee expenses
(61,438)

(123,311)

(63,812)
O
ther operating expenses (24,745) (72,006) (36,880)
E
quity accounted earnings/(losses) of investees
(5)

(40)

–
O
perating EBITDA 34,522 24,425 17,839
Non-operating items (275) (4,482) (1,005)
Holida
ys Act 2003 remediation costs
(5)

2,303

2,478
Impairments and fair value adjustments
(133)

(3,187)

22
D
epreciation and amortisation expense
(14,478)

(9,362)

(4,205)
EBIT

19,631

9,697

15,129
Net int
erest and finance income/(expense)
2

(1,921)

(6,067)

(3,186)
P
rofit/loss from continuing operations before income tax
17,710

3,630

11,943
I
ncome tax benefit/(expense)
(4,949)

370

(2,920)
Profit from continuing operations, net of income tax
12,761

4,000

9,023
D
iscontinued operations
Results from discontinued operations, net of income tax
(5)

(6,475)

(8,703)
G
ain on sale of discontinued operations, net of income tax
–

134,281

–
P
rofit/(loss) from discontinued operations, net of income tax
(5)

127,806

(8,703)
Net pr
ofit after tax
12,756

131,806

320
P
rofit attributable to:
Shareholders of the Company

12,756

131,123

140
Non-
controlling interest
–

683

180
Net pr
ofit after tax
12,756

131,806

320
Basic earnings per shar
e (EPS)
Basic EPS (New Zealand Dollars) on issued ordinary shares at the end of period
3

0.169

0.174

0.000
Basic EPS (Ne
w Zealand Dollars) on issued ordinary shares at the end of period
– continuing operations
3

0.169

0.005

0.012
Basic EPS (Ne
w Zealand Dollars) on a weighted average basis
3

0.053

0.174

0.000
Basic EPS (Ne
w Zealand Dollars) on a weighted average basis – continuing operations
3

0.053

0.005

0.012
*

T
he Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. The December 2019 reporting period includes NZ IFRS
16 adjustments however the comparative periods exclude such adjustments. Excluding NZ IFRS 16, the Operating EBITDA and NPAT for the December
2019 period were $23.66 million and $13.69 million, respectively. Refer page 11 for the impact of the standard on the December 2019 profit or loss.
The accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF PROFIT OR LOSS
For the six months ended 31 December 2019

10 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 1110 | PGG WRIGHTSON LIMITED
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2019
UNAUDITED AUDITED UNAUDITED
D
EC 2019
J
UN 2019
D
EC 2018
$000 $000 $000
Net profit after tax 12,756 131,806 320
Other comprehensive income/(loss):
C
ontinuing operations
Items that will never be reclassified to Profit or Loss
Changes in fair value of equit
y instruments
–

21

–
R
emeasurements of defined benefit liability 2,985 (6,101) (3,399)
Deferred tax on remeasurements of defined benefit liability (836) 703 803
2,149

(5,377)

(2,596)
I
tems that are or may be reclassified to Profit or Loss
F
oreign currency translation differences for foreign operations
–

(884)

(1,290)
– (884) (1,290)
O
ther comprehensive income/(loss) for continuing operations
2,149

(6,261)

(3,886)
D
iscontinued operations
Changes in asset r
evaluation reserve
–

403

–
O
ther comprehensive income/(loss) for discontinued operations
–

403

–
T
otal comprehensive income /(loss) for the period
14,905

125,948

(3,566)
Total comprehensive income/(loss) attributable to:
Shar
eholders of the Company
14,905

125,282

(3,875)
Non-
controlling interest
–

666

309
T
otal comprehensive income/(loss) for the period
14,905

125,948

(3,566)
T
he accompanying notes form an integral part of these financial statements.

10 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 11
PGG WRIGHTSON LIMITED
IMPACT OF ADOPTION OF NZ IFRS 16 LEASES
For the six months ended 31 December 2019
The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. Under the method adopted, comparative
information is not restated and continues to be reported under NZ IAS 17. Refer Note 1 for the change in accounting policy in respect of leases.
The impact of NZ IFRS 16 on the financial statements for the 31 December 2019 period is significant. The following tables show the adjustments to
the interim statement of profit and loss, statement of financial position and statement of cash flows as a result of the adoption of NZ IFRS 16 Leases.
(a) Adjustments in statement of profit and loss
UNAUDITED UNAUDITED
DEC 2019 DEC 2019

INCLUDING NZ IFRS 16 EXCLUDING UNAUDITED
NZ IFRS 16 ADJUSTMENTS NZ IFRS 16 DEC 2018

$000 $000 $000
$000
Continuing operations
Operating revenue 474,079 – 474,079 473,765
C
ost of sales (353,486) – (353,486) (355,226)
Gross profit 120,593 – 120,593 118,539
O
ther income
117

–

117

(8)
Emplo
yee expenses (61,438) – (61,438) (63,812)
O
ther operating expenses
(24,745)

(10,863)

(35,608)

(36,880)
E
quity accounted earnings/(losses) of investees (5) – (5) –
Operating EBITDA 34,522 (10,863) 23,659 17,839
Non-operating items
(275)

–

(275)

(1,005)
Holidays Act 2003 remediation costs
(5)

–

(5)

2,478
Impairments and fair value adjustments (133) – (133) 22
Depreciation and amortisation expense (14,478) 10,057 (4,421) (4,205)
EBIT 19,631 (806) 18,825 15,129
Net interest and finance income/(expense) (1,921) 2,106 185 (3,186)
Profit from continuing operations before income tax 17,710 1,300 19,010 11,943
I
ncome tax benefit/(expense)
(4,949)

(364)

(5,313)

(2,920)
Profit from continuing operations, net of income tax 12,761 936 13,697 9,023
P
rofit/(loss) from discontinued operations, net of income tax (5) – (5) (8,703)
Net profit after tax
12,756

936

13,692

320

12 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 13
KEY FINANCIAL DISCLOSURES
(b) Adjustments in statement of financial position
UNAUDITED UNAUDITED

D
EC 2019
D
EC 2019

INCLUDING NZ IFRS 16 EXCLUDING UNAUDITED
NZ IFRS 16 ADJUSTMENTS NZ IFRS 16 DEC 2018
$000 $000 $000 $000
Total current assets 392,996 – 392,996 860,316
Total non-current assets
179,450

(111,160)

68,290

70,715
Total assets 572,446 (111,160) 461,286 931,031
Total current liabilities
278,117

(15,681)

262,436

515,027
T
otal non-current liabilities
120,873

(96,415)

24,458

142,258
T
otal liabilities
398,990

(112,096)

286,894

657,285
T
otal equity
173,456

936

174,392

273,746
(c) Adjustments in statement of cash flows
UNAUDITED UNAUDITED
DEC 2019 DEC 2019
INCLUDING NZ IFRS 16 EXCLUDING UNAUDITED
NZ
IFRS 16
ADJUSTMENT
S
NZ
IFRS 16
DEC
2018
$000 $000 $000 $000
Net cash inflow/(outflow) from operating activities (14,871) (8,757) (23,628) (58,601)
Net cash inflow/(outflow) from investing activities (3,789) – (3,789) (5,275)
Net cash inflow/(outflow) from financing activities
(191,149)

8,757

(182,392)

74,031
T
otal cash inflow/(outflow)
(209,809)

–

(209,809)

10,155
PGG WRIGHTSON LIMITED
IMPACT OF ADOPTION OF NZ IFRS 16 LEASES CONTINUED
For the six months ended 31 December 2019

12 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 13
PGG WRIGHTSON LIMITED
SEGMENT REPORT
For the six months ended / as at 31 December 2019
(a) Operating Segments
The Group has two primary operating segments, Agency and Retail
& Water, which are the Group's strategic divisions. These operating
segments operate within New Zealand.
The two operating segments offer different products and services,
and are managed separately because they require different skills,
technology and marketing strategies. Within each segment, further
business unit analysis may be provided to management where there
are significant differences in the nature of activities. The Chief Executive
Officer or Chairman of the Board reviews internal management reports
on each strategic business unit on at least a monthly basis.
The Group's segments are described below:
–

A
gency: Includes rural Livestock trading activities, Wool, Insurance,
Real Estate and Finance Commission.
–

Retail
& Water: Includes Rural Supplies and Fruitfed retail
operations, PGG Wrightson Water, PGW Consulting, Agritrade and
ancillary sales support and supply chain functions.
–

O
ther: Relates to certain Group Corporate activities such as
Governance, Finance, Treasury, HR, IT, Marketing and other support
services (including corporate property services) and includes
consolidation/elimination adjustments.
–

D
iscontinued operations: Pertains to PGG Wrightson Seeds
Holdings Limited together with its subsdiaries and investments in
jointly controlled entities (formerly the Seed and Grain segment),
and PGW Rural Capital Limited (PGWRC). PGWRC was established
in 2012 to hold and recover certain excluded loans related to the
sale of the Group's finance subsidiary PGG Wrightson Finance
Limited.
Assets and liabilities allocated to each business unit combine to form
total assets and liabilities for the Agency and Retail & Water business
segments. Certain other assets and liabilities are held at a Corporate
level including those for the Corporate functions noted above.
The profit/(loss) for each business unit combines to form total
profit/(loss) of the Agency and Retail & Water segments. Certain
other revenues and expenses are held at the Corporate level for the
Corporate functions noted above.
Other cost allocation
The Group applies an allocation methodology which allocates certain
corporate costs to an operating segment where they can be directly
attributed to that segment or attributed based on the use of the
following methods:
–

IT har
dware, support, licence and other costs are attributed on a
per user basis.
–

P
roperty costs which are not directly attributable are allocated on a
property space utilisation basis.
–
Business operations costs (
Accounts Payable, Accounts Receivable,
Call Centre) are allocated based on FTE usage by each operating
segment or transactional volumes. Credit Services costs are
allocated based on the operating segment to which overdue
accounts relate.
Other costs including non-operating items, impairment and fair value
adjustments, net interest and finance costs, income tax expense and
the results of discontinued operations are not fully allocated by the
Group across the operating segments. The Group Finance, Risk and
Assurance, Treasury, HR, Credit and the Executive Team functions
continue to be reported outside of the operating segments.
(b) Geographical Segment
The Group operates within New Zealand only and its revenue is derived
primarily from New Zealand.

PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019
| 14
KEY FINANCIAL DISCLOSURES
* The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. The December 2019 reporting period includes NZ IFRS 16 adjustments, however the approach adopted has no impact on the comparative periods
which exclude such adjustments.
**

T
he June 2019 and December 2018 comparatives have been restated to reflect the transfer of Marketing, IT and HR functions, which were previously included within Agency and Retail & Water segments, to Group Corporate during the period.
The accompanying notes form an integral part of these financial statements.
PGG WRIGHTSON LIMITED
INTERIM SEGMENT REPORT CONTINUED
For the six months ended / as at 31 December 2019
(d) Impact of adoption of NZ IFRS 16
Net profit/(loss) after tax post NZ IFRS 16
917

15,837

(3,993)

(5)

12,756

L
ess NZ IFRS 16 adjustments:
Other operating expenses
3,630

6,317

916

-


10,863
D
epreciation and amortisation expense
(3,460)

(5,747)

(850)

-

(10,057)

Net int
erest and finance income/(expense)
(506)

(1,433)

(167)

-

(2,106)

I
ncome tax benefit/(expense)
96

240

28

-


364
Net pr
ofit/(loss) after tax pre NZ IFRS 16
1,157

16,460

(3,920)

(5)

13,692

NZ IFRS 16 adjustmen
ts in the statement of financial position
Right-of-use assets

26,194

74,230

10,372

-

110,796

D
eferred tax asset
96

240

28

-

364

L
ease liabilities
(25,923)

(73,246)

(10,367)

-

(109,536)

O
ther long-term liabilities
(613)

(1,840)

(107)

-

(2,560)

(c) Operating Segment Information
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTAL
UNA
UDITED
A
UDITED
UNA
UDITED

UNAUDITED
A
UDITED
UNA
UDITED

UNAUDITED
A
UDITED
UNA
UDITED

UNAUDITED
A
UDITED
UNA
UDITED

UNAUDITED
A
UDITED

UNAUDITED
DEC 2019* JUN 2019** DEC 2018** DEC 2019* JUN 2019** DEC 2018** DEC 2019* JUN 2019** DEC 2018** DEC 2019* JUN 2019** DEC 2018** DEC 2019* JUN 2019** DEC 2018**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Total external operating revenues 84,797 193,843 85,767 384,165 602,917 379,208 5,117 12,495 8,790 – – – 474,079 809,255 473,765
Operating EBITDA 6,383 15,394 1,614 31,120 19,296 22,759 (2,981) (10,265) (6,534) – – – 34,522 24,425 17,839
Non-operating items 6 (665) (10) 251 (406) 151 (532) (3,411) (1,146) – – – (275) (4,482) (1,005)
Holidays Act 2003 remediation costs – 752 752 – 1,724 1,724 (5) (173) 2 – – – (5) 2,303 2,478
Impairment and fair value adjustments (133) (2,286) 22 – – – – (901) – – – – (133) (3,187) 22
Depreciation and amortisation expense
(4,371)

(1,712)

(706)

(8,000)

(4,922)

(1,767)

(2,107)

(2,728)

(1,732)

–

–

–

(14,478)

(9,362)

(4,205)
EBIT 1,885 11,483 1,672 23,371 15,692 22,867 (5,625) (17,478) (9,410) – – – 19,631 9,697 15,129
Net interest and finance income/(expense) (606) 1,460 1,145 (1,571) (357) (321) 256 (7,170) (4,010) – – – (1,921) (6,067) (3,186)
Profit/(loss) from continuing operations before income tax 1,279 12,943 2,817 21,800 15,335 22,546 (5,369) (24,648) (13,420) – – – 17,710 3,630 11,943
Income tax benefit/(expense)
(362)

(3,323)

(578)

(5,963)

(3,860)

(5,951)

1,376

7,553

3,609

–

–

–

(4,949)

370

(2,920)
Profit/(loss) from continuing operations, net of income tax 917 9,620 2,239 15,837 11,475 16,595 (3,993) (17,095) (9,811) – – – 12,761 4,000 9,023
Discontinued operations

–

–

–

–

–

–

–

–

–

(5)

127,806

(8,703)

(5)

127,806

(8,703)
Net pr
ofit/(loss) after tax
917

9,620

2,239

15,837

11,475

16,595

(3,993)

(17,095)

(9,811)

(5)

127,806

(8,703)

12,756

131,806

320
S
egment assets 178,352 168,907 144,528 373,837 154,298 312,393 18,011 238,821 23,942 2 1,202 1,209 570,202 563,228 482,072
A
ssets held for sale 23 – – 218 218 218 2,003 2,108 2,290 – – 446,451 2,244 2,326 448,959
T
otal segment assets 178,375 168,907 144,528 374,055 154,516 312,611 20,014 240,929 26,232 2 1,202 447,660 572,446 565,554 931,031
Segment liabilities (68,867) (81,923) (49,248) (255,068) (66,373) (186,164) (75,055) (18,994) (232,311) – – – (398,990) (167,290) (467,723)
Liabilities held for sale – – – – – – – – – – – (189,562) – – (189,562)
Total segment liabilities (68,867) (81,923) (49,248) (255,068) (66,373) (186,164) (75,055) (18,994) (232,311) – – (189,562) (398,990) (167,290) (657,285)

15 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 16
KEY FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CASH FLOWS
For the six months ended 31 December 2019
UNAUDITED AUDITED UNAUDITED
D
EC 2019
J
UN 2019
D
EC 2018
NOTE $000 $000 $000
Cash flows from operating activities
Cash was provided from:
Receipts from customers
387,793

1,226,807

644,442
Dividends r
eceived 2 2 2
Interest received
3,436

6,399

2,525
391,231 1,233,208 646,969
Cash was applied to:
Payments to suppliers and employees (400,090) (1,248,659) (686,660)
Contributions to defined benefit plans (ESCT inclusive)
–

(10,274)

(1,481)
I
nterest paid (387) (8,322) (4,894)
Interest paid on leases
(2,106)

–

–
I
ncome tax paid (3,519) (14,954) (12,535)
(406,102)

(1,282,209)

(705,570)
Net c
ash inflow/(outflow) from operating activities (14,871) (49,001) (58,601)
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment and assets held for sale
760

624

612
C
ash acquired on purchase of investment
–

1,523

1,523
P
roceeds from sale of investments
–

425,851

–
760

427,998

2,135
C
ash was applied to:
Purchase of property, plant and equipment
(2,293)

(11,571)

(5,446)
P
urchase of intangibles
(2,256)

(4,934)

(1,964)
I
nvestment sale costs
–

(6,799)

–
C
ash disposed on sale of investment
–

(25,414)

–
(4,549)

(48,718)

(7,410)
Net c
ash inflow/(outflow) from investing activities
(3,789)

379,280

(5,275)
Cash flows from financing activities
Cash was provided from:
Increase in external borrowings and bank overdraft
57,320

–

83,857
57,320

–

83,857
C
ash was applied to:
Share repurchase and cancellation
(234,000)

(6)

–
Dividends paid t
o shareholders
(5,713)

(15,267)

(9,688)
Dividends paid t
o minority interests
–

(1,189)

(138)
R
epayment of external borrowings and bank overdraft
–

(114,252)

–
R
epayment of principal portion of lease liabilities
(8,757)

–

–
(248,470)

(130,714)

(9,826)
Net c
ash inflow/(outflow) from financing activities
(191,150)

(130,714)

74,031
Net incr
ease/(decrease) in cash held
(209,809)

199,565

10,155
Opening cash

210,491

10,926

10,926
C
ash and cash equivalents
4

682

210,491

21,081
C
ash and cash equivalents attributable to continuing operations
682

210,491

3,884
C
ash and cash equivalents attributable to assets held for sale
–

–

17,197
682

210,491

21,081
T
he accompanying notes form an integral part of these financial statements.

15 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 16
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the six months ended 31 December 2019
UNAUDITED AUDITED UNAUDITED
D
EC 2019
J
UN 2019
D
EC 2018
$000 $000 $000
Profit after taxation 12,756 131,806 320
Add/(deduct) non-cash/non-operating items:
Depreciation and amortisation

14,478

13,891

7,786
I
mpairment and fair value adjustments 133 4,079 2,028
Net (pr
ofit)/loss on sale of assets/investments
(92)

(134,218)

(282)
L
oss/(earnings) of equity accounted investees 5 6,412 6,243
Bad debts written off (net) 75 2,519 925
E
ffect of foreign exchange movements
(72)

(5,879)

(2,389)
Change in def
erred taxation 1,338 2,111 (5,714)
D
efined benefit expense
(3)

(817)

–
P
ension contributions (operating cash) not expensed through profit and loss – (10,274) (1,481)
O
ther non-cash/non-operating items
(1,301)

(2,357)

(2,002)
27,317

7,273

5,434
A
dd/(deduct) movement in working capital items:
Change in working capital due to sale/purchase of businesses
–

(199,376)

5,741
Change in working capital due to balance sheet reclasssification
(15,681)

(24,957)

–
Change in in
ventories and biological assets
(21,758)

176,575

(25,998)
Change in accounts r
eceivable and prepayments
(86,611)

110,893

(116,337)
Change in trade cr
editors, provisions and accruals
81,391

(112,759)

86,293
Change in income tax payable/receivable (271) (4,997) (10,939)
Change in other current assets/liabilities 742 (1,653) (2,795)
(42,188)

(56,274)

(64,035)
Net c
ash inflow/(outflow) from operating activities
(14,871)

(49,001)

(58,601)
T
he accompanying notes form an integral part of these financial statements.

KEY FINANCIAL DISCLOSURES
17 | PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF FINANCIAL POSITION
As at 31 December 2019
UNAUDITED AUDITED UNAUDITED
D
EC 2019
J
UN 2019
D
EC 2018*
NOTE $000 $000 $000
ASSETS
Current
Cash and cash equivalents
4

682

210,491

3,884
Shor
t-term derivative assets
1,089

614

464
T
rade and other receivables
241,598

145,881

255,668
Go liv
estock receivables
4

38,584

47,754

30,958
I
ncome tax receivable
–

–

4,139
Assets classified as held for sale
2,244

2,326

448,959
Biolog
ical assets 12 35 264
Inventories
107,750

85,969

114,313
O
ther investments – – 30
Short-term intangible assets
1,037

2,222

1,637
T
otal current assets
392,996

495,292

860,316
Non-current
Long-term derivative assets 454 387 400
Biological assets
12

12

31
D
eferred tax asset
7,802

9,976

11,692
I
nvestments in equity accounted investees
66

71

59
O
ther investments
471

470

465
L
ong-term intangible assets
16,081

14,644

12,545
R
ight-of-use assets
1

110,796

–

–
Property, plant and equipment
5

43,768

44,702

45,523
T
otal non-current assets
179,450

70,262

70,715
Total assets
572,446

565,554

931,031
LIABILITIES
C
urrent
Debt due within one year
4

40,000

2,680

79,635
Shor
t-term derivative liabilities 365 280 476
A
ccounts payable and accruals
221,050

155,903

244,385
I
ncome tax payable 1,021 851 –
Short-term lease liabilities
1

15,681

–

–
Liabilities classified as held f
or sale
–

–

189,562
Defined benefit liability
–

–

969
T
otal current liabilities
278,117

159,714

515,027
Non-current
Long-term debt

4

20,000

–

130,000
L
ong-term derivative liabilities
56

62

492
L
ong-term lease liabilities
1

93,855

–

–
Other long-term liabilities
4,067

1,631

200
D
efined benefit liability
2,895

5,883

11,566
T
otal non-current liabilities
120,873

7,576

142,258
T
otal liabilities
398,990

167,290

657,285
EQUIT
Y
Share capital

372,318

606,318

606,324
R
eserves 12,573 10,424 5,162
Retained earnings
(211,435)

(218,478)

(340,389)
T
otal equity attributable to shareholders of the Company
173,456

398,264

271,097
Non-
controlling interest
–

–

2,649
T
otal equity
173,456

398,264

273,746
T
otal liabilities and equity
572,446

565,554

931,031
*

T
he comparatives have been restated for NZ IFRS 9.
The accompanying notes form an integral part of these financial statements.

ADDITIONAL
FINANCIAL
DISCLOSURES
INCLUDING NOTES TO THE
FINANCIAL STATEMENTS FOR THE
SIX MONTHS ENDED
31 DECEMBER 2019
$
PGG Wrightson Technical Field
Representative Dayne Paton inspects
a kale crop at Bunnings Farm in
Fernside, Canterbury, in May 2019.
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 18

19 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 2019 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 20
ADDITIONAL FINANCIAL DISCLOSURES
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2019
1 LEASES
The Group leases many assets, including:
–
leases of land and buildings fr
om which it conducts operations. These leases range in length from one to fifteen years with various rights of
renewal. Where surplus properties are unable to be exited, the Group subleases these properties where possible and derives sublease revenue
on a short-term temporary basis.
–
leases of v
ehicles for use by employees, agents and representatives. These leases range for a period of between three and six years.
–

leases of office and IT equipment.
These leases are typically for a period of four years.
Transition to NZ IFRS 16
The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. In accordance with the new standard, the
Group recognised right-of-use assets of $109.17 million and lease liabilities of $106.63 million at the initial adoption date of 1 July 2019. The Group
also recognised a provision for make good costs of $2.54 million as at 1 July 2019.
Lease liabilities were measured at the present value of the remaining lease payments, discounted using the Group's incremental borrowing rate
as at 1 July 2019. The incremental borrowing rates applied to the lease liabilities on 1 July 2019 were 4.0% for properties and 3.5% for vehicles. The
right-of-use assets were recognised at an amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments.
On transition, the Group applied the following practical expedients:
–

T
he Group grandfathered the assessment of which transactions constitute leases and applied NZ IFRS 16 only to contracts that were
previously identified as leases under NZ IAS 17. Contracts that were not identified as leases under NZ IAS 17 were not reassessed for whether
there is a lease. The definition of a lease under NZ IFRS 16 was only applied to contracts entered into or changed on or after 1 July 2019.
–

T
he Group applied a single discount rate to a portfolio of leases with reasonably similar characteristics.
–

T
he Group excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application.
–
T
he Group elected not to recognise a right-of-use asset and a lease liability for certain leases for which the lease term ends within 12 months
of the initial adoption date.
–
T
he Group used hindsight in determining the lease term.
In the process of adopting the new standard, a number of judgements and estimates have been made. These include:
–

incr
emental borrowing rate at the time of adoption
–
lease t
erms, including any rights of renewal expected to be exercised
The Group elected not to recognise right-of-use assets and lease liabilities for short-term or low-value leases, such as leases of office and IT
equipment. The Group continues to expense lease payments associated with these leases on a straight-line basis.
UNAUDITED
DEC 2019
$000
Amounts in statement of profit or loss
Depreciation on right-of-use assets (10,057)
Interest on lease liabilities
(2,106)
Shor
t-term or low-value lease expenses (97)
V
ariable lease payments not included in the measurement of lease liabilities
(85)
I
ncome from sub-leasing right-of-use assets
616
Amounts in statement of cash flows
Cash outflow for interest on lease liabilities (operating activities)
(2,106)
C
ash outfllow for principal portion of lease liabilities (financing activities)
(8,757)
T
otal cash outflow for leases
(10,863)
A
mounts in statement of financial position
PROPERTY VEHICLES TOTAL
$000 $000 $000
Right-of-use assets
Balance at 1 July 2019 97,084 12,082 109,166
Net additions
, terminations and reassessments 9,221 2,466 11,687
Depreciation charge for the period (6,798) (3,259) (10,057)
Balance at 31 December 2019 99,507 11,289 110,796

19 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 2019 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 20
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2019
1 LEASES (CONTINUED)
UNAUDITED
D
EC 2019
$000
Amounts in statement of financial position (continued)
Lease liabilities
Current lease liabilities
15,681
Non-current lease liabilities
93,855
Total lease liabilities recognised in the statement of financial position 109,536
Maturity analysis - contractual undiscounted cash flows
Less than one year
19,576
One to five years 57,635
More than five years 51,807
Total undiscounted lease liabilities at 31 December 2019
129,018
Reconciliation of recognised lease liabilities to operating lease commitments
Operating lease commitments at 30 June 2019 as disclosed in the Group's financial statements

84,403
Operating lease commitments at 30 June 2019 discount
ed at the incremental borrowing rate at 1 July 2019
74,905
Value of operating leases not commenced as at 1 July 2019 (9,560)
R
ecognition exemption for short-term leases
(402)
V
alue of additional leases and future lease renewal options reasonably certain to be exercised
41,683
L
ease liabilities recognised on initial adoption date of 1 July 2019
106,626
L
ease Accounting Policies
Right-of-use assets
Under NZ IFRS 16, right-of-use assets are initially measured at cost, which comprises the initial amount of lease liability adjusted for any
prepaid lease payments, plus any initial direct costs incurred and any estimated restoration costs, and less any lease incentives received.
These assets are depreciated using the straight-line method from the commencement date to the earlier of the end of the lease term or
the
asset's useful life. Right-of-use assets are adjusted for certain remeasurements of the lease liabilities.
Lease liabilities
Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date. Lease
payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that are based on an index
or a rate, amounts expected to be payable under a residual value guarantee, and any exercise price the Group is reasonably certain to
exercise. The lease payments are discounted using the Group's incremental borrowing rate, being the rate that the Group would have to
pay to borrow the fund necessary to obtain an asset of similar value in a similar environment under similar terms and conditions.
After the commencement date, lease liabilities are increased to reflect interest on the lease liabilities and reduced to reflect the lease
payments made. Interest on lease liabilities is charged to the profit and loss and is the amount that produces a constant periodic rate of
interest on the remaining balance of the lease liabilities.
Lease liabilities are remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the
Group's estimate of any amount payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise
a purchase, extension or termination option. When the lease liabilities are remeasured, a corresponding adjustment is made to the carrying
amount of the right-of-use assets.

21 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 22
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2019
ADDITIONAL FINANCIAL DISCLOSURES
2 NET INTEREST AND FINANCE COSTS
UNAUDITED AUDITED UNAUDITED
DEC 2019 JUN 2019 DEC 2018
$000 $000 $000
Interest income 529 771 42
Interest funding expense
Bank interest on loans and overdraft

(381)

(4,928)

(2,827)
O
ther interest expense (7) (312) (61)
Bank facilit
y fees
(305)

(1,885)

(975)
(693) (7,125) (3,863)
Net int
erest on interest rate derivatives
–

(761)

(182)
F
air value change on interest rate derivatives – 535 59
Effective interest on expected defined benefit pension payments – (299) (166)
Net In
terest
(164)

(6,879)
(4,110)
Interest on lease liabilities

(2,106)

– –
F
oreign exchange income/(expense)
Net gain/(loss) on foreign denominated items
(113)

(423)

(23)
F
air value change on foreign exchange derivatives
462

1,235

947
349

812

924
Net in
terest and finance income/(expense)
(1,921)

(6,067)

(3,186)
3 EARNINGS PER SHARE (EPS) AND NET TANGIBLE ASSETS (NTA)
UNAUDITED AUDITED UNAUDITED
DEC 2019 JUN 2019 DEC 2018
000 000 000
Issued ordinary shares at the end of reporting period 75,484 754,839 754,849
Weighted average number of ordinary shares
Issued ordinary shares at the beginning of reporting period
754,839

754,849

754,849
E
ffect of ordinary shares issued due to 2:1 share split
573,348

–

–
Effect of ordinary shares repurchased and cancelled (573,348) (5) –
Effect of ordinary shares reduced due to 1:10 share consolidation
(516,013)

–

–
W
eighted average number of ordinary shares outstanding
during the reporting period
238,826

754,844

754,849
UNAUDITED AUDITED UNAUDITED
DEC 2019 JUN 2019 DEC 2018

$000 $000
$000
Profit net of tax attributable to Shareholders of the Company 12,756 131,123 140
Profit from continuing operations (net of tax) attributable to Shareholders of the Company 12,761 4,000 9,023
Net tangible assets
T
otal assets 572,446 565,554 931,031
Total liabilities (398,990) (167,290) (657,285)
less intangible assets (17,118) (16,866) (27,886)
less def
erred tax
(7,802)

(9,976)

(22,901)
Net tangible assets
148,536 371,422 222,959

21 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 22
3 EARNINGS PER SHARE (EPS) AND NET TANGIBLE ASSETS (NTA (CONTINUED)
UNAUDITED AUDITED UNAUDITED
D
EC 2019
J
UN 2019
D
EC 2018
$ $ $
Basic EPS on issued ordinary shares at the end of period 0.169 0.174 0.000
Basic EPS on issued ordinary shares at the end of period - continuing operations
0.169

0.005

0.012
Basic EPS on a weighted average basis 0.053 0.174 0.000
Basic EPS on a weighted average basis - continuing operations
0.053

0.005

0.012
NTA per issued ordinary shares at the end of period 1.968 0.492 0.295
4 CASH AND FINANCING FACILITIES
UNAUDITED AUDITED UNAUDITED
DEC 2019 JUN 2019 DEC 2018
$000 $000 $000
Cash and cash equivalents 682 210,491 3,884
Current financing facilities
(40,000)

(2,680)

(79,635)
T
erm financing facilities
(20,000)

–

(130,000)
Net interest-bearing (debt)/cash and cash equivalents (59,318) 207,811 (205,751)
Go livestock receivables
38,584

47,754

30,958
(Net in
terest-bearing debt less Go livestock receivables) /
Cash and cash equivalents plus Go livestock receivables
(20,734)

255,565

(174,793)
F
inancing facilities
On 2 July 2019, the Company entered into a new syndicated bank facility which provides the following:
–
Term debt facility of $50.00 million maturing on 1 August 2021
–

W
orking capital facilities of up to $70.00 million maturing on 1 August 2021
The syndicated facilities fund the general corporate activities of the Group, the seasonal fluctuations in working capital, and the Go livestock
receivables.
The Company has granted a general security deed and mortgage over all its wholly-owned New Zealand assets to a security trust. Bank of New
Zealand acts as facility agent and security trustee for the banking syndicate, which comprises Bank of New Zealand, Cooperatieve Rabobank U.A.
(New Zealand branch) and Westpac New Zealand Limited.
The agreement contains various financial covenants and restrictions that are standard for facilities of this nature, including maximum permissible
ratios for debt leverage and operating leverage, together with limits for Go receivables and capital expenditure.
The syndicated facility agreement allows the Group, subject to certain conditions, to enter into additional facilities outside of the Company's
syndicated facility. The additional facilities are guaranteed by the security trust. These facilities amounted to $9.08 million as at 31 December 2019.
–

O
verdraft facilities of $3.00 million
–

Guarant
ee and trade finance facilities of $6.08 million

23 | PGG WRIGHTSON LIMITEDHALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | PB
PGG WRIGHTSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2019
ADDITIONAL FINANCIAL DISCLOSURES
5 PROPERTY, PLANT AND EQUIPMENT
Acquisitions
During the period to 31 December 2019, the Group acquired assets with a cost of $2.29 million (30 June 2019: $5.72 million, 31 December 2018:
$7.25 million).
Disposals
Assets with a net book value of $0.52 million were disposed during the period to 31 December 2019 (30 June 2019: $0.42 million, 31 December
2018: $0.19 million), resulting in a gain on disposal of $0.08 million (30 June 2019 Loss: $0.03 million, 31 December 2018 Gain: $0.27 million).
6 SEASONALITY OF OPERATIONS
The Group is subject to significant seasonal fluctuations. The Retail businesses' earnings are weighted towards the first half of the financial year
as demand for New Zealand farming inputs are generally weighted towards the spring season. New Zealand generally has spring calving and
lambing, so Livestock trading is weighted towards the second half of the financial year in order for farmers to maximise their incomes. Other
business units have similar but less material cycles. The Group recognises that this seasonality is the nature of the industry and plans and manages
its business accordingly.
7 EVENTS SUBSEQUENT TO END OF INTERIM PERIOD
Dividend
On 25 February 2020, the Directors of PGG Wrightson Limited resolved to pay an interim dividend of 9.0 cents per share on 3 April 2020 to the
shareholders on the Company's share register as at 5.00pm on 6 March 2020. This dividend will be fully imputed.
8 REPORTING ENTITY
PGG Wrightson Limited (the "Company") is a company domiciled in New Zealand, registered under the Companies Act 1993 and listed on the New
Zealand Stock Exchange. The Company is an FMC Entity in terms of the Financial Markets Conduct Act 2013.
The interim financial statements of PGG Wrightson Limited for the six months ended 31 December 2019 comprise the Company and its
subsidiaries (together referred to as the "Group") and the Group's interest in associates and jointly controlled entities. The interim financial
statements have been prepared in accordance with the requirements of the Financial Markets Conduct Act 2013 and the Financial Reporting Act
2013.
The Group is primarily involved in the provision of goods and services within the agricultural sector.
9 BASIS OF PREPARATION
Statement of Compliance
The interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They
comply with the New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable Financial Reporting
Standards as applicable for profit-oriented entities, and in particular NZ IAS 34 Interim Financial Reporting. They also comply with the International
Financial Reporting Standards issued by the International Accounting Standards Board, as applicable for profit-oriented entities.
The interim financial statements do not include all of the information required for full annual financial statements. Unless otherwise specified, the
same accounting policies and methods of computation are followed in the interim financial statements as applied in the Group's latest annual
audited financial statements. Certain comparative amounts have been reclassified to conform with the current period's presentation.
These interim financial statements were approved by the Board of Directors on 25 February 2020.
Standards and Interpretations That Have Been Issued or Amended But Are Not Yet Effective
A number of new standards and interpretations are not yet effective for the period ended 31 December 2019 and have not been applied in
preparing these interim financial statements. These include:
–

A var
iety of minor improvements to standards have been made to clarify various treatments of specific transactions. These are not expected
to have an impact on the Group's financial results.

PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019
| 24
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2019
ADDITIONAL FINANCIAL DISCLOSURES
FOREIGN
CURRENC
Y
REALISED
CAPITAL
NON-
SHARE TRANSLATION AND REVALUATION DEFINED BENEFIT FAIR VALUE RETAINED CONTROLLING TOTAL
CAPITAL RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2018 606,324 (3,723) 23,999 (9,042) (2,587) (329,987) 2,478 287,462
Adjustment on adoption of NZ IFRS 9, net of tax
–

–

–

–

–

(324)

–

(324)
A
djusted balance at 1 July 2018
606,324

(3,723)

23,999

(9,042)

(2,587)

(330,311)

2,478

287,138
T
otal comprehensive income for the period
Profit or loss
–

–

–

–

–

140

180

320
O
ther comprehensive income:
Foreign currency translation differences
–

(1,419)

–

–

–

–

129

(1,290)
D
efined benefit plan actuarial gain/(loss), net of tax – – – (2,596) – – – (2,596)
Total other comprehensive income
–

(1,419)

–

(2,596)

–

–

129

(3,886)
T
otal comprehensive income for the period
–

(1,419)

–

(2,596)

–

140

309

(3,566)
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Dividends to shareholders
–

–

–

–

–

(9,688)

(138)

(9,826)
T
otal contributions by and distributions to shareholders
–

–

–

–

–

(9,688)

(138)

(9,826)
T
ransfer to retained earnings
–

–

–

530

–

(530)

–

–
Balanc
e at 31 December 2018 606,324 (5,142) 23,999 (11,108) (2,587) (340,389) 2,649 273,746
Balance at 1 January 2019 606,324 (5,142) 23,999 (11,108) (2,587) (340,389) 2,649 273,746
Total comprehensive income for the period
Profit or loss
–

–

–

–

–

130,983

503

131,486
O
ther comprehensive income:
Foreign currency translation differences
– 552 – – – – (146) 406
Changes in asset revaluation reserve – – 403 – – – – 403
Changes in fair value of equity instrument, net of tax
–

–

–

–

21

–

–

21
D
efined benefit plan actuarial gain/(loss), net of tax
–

–

–

(2,802)

–

–

–

(2,802)
T
otal other comprehensive income
–

552

403

(2,802)

21

–

(146)

(1,972)
T
otal comprehensive income for the period
–

552

403

(2,802)

21

130,983

357

129,514
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation
(6)

–

–

–

–

–

–

(6)
Dividends t
o shareholders
–

–

–

–

–

(5,579)

(1,051)

(6,630)
T
otal contributions by and distributions to shareholders
(6)

–

–

–

–

(5,579)

(1,051)

(6,636)
S
ale of PGG Wrightson Seed Holdings Limited
Reclassification of reserves to Profit & Loss

–

3,741

–

–

–

–

(2,101)

1,640
R
eclassification of reserves to Retained Earnings
–

849

260

–

–

(1,255)

146

–
T
otal reclassification to Profit & Loss
–

4,590

260

–

–

(1,255)

(1,955)

1,640
T
ransfer to retained earnings
–

–

–

2,238

–

(2,238)

–

–
Balanc
e at 30 June 2019
606,318

–

24,662

(11,672)

(2,566)

(218,478)

–

398,264

PGG WRIGHTSON LIMITED
HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019
| 25
PGG WRIGHTSON LIMITED
INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2019
ADDITIONAL FINANCIAL DISCLOSURES
FOREIGN
CURRENC
Y
REALISED
CAPITAL
NON-
SHARE TRANSLATION AND REVALUATION DEFINED BENEFIT FAIR VALUE RETAINED CONTROLLING TOTAL
CAPITAL RESERVE RESERVE PLAN RESERVE RESERVE EARNINGS INTEREST EQUITY
$000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 July 2019 606,318 – 24,662 (11,672) (2,566) (218,478) – 398,264
Total comprehensive income for the period
Profit or loss

–

–

–

–

–

12,756

–

12,756
O
ther comprehensive income:
Defined benefit plan actuarial gain/(loss), net of tax
–

–

–

2,149

–

–

–

2,149
T
otal other comprehensive income – – – 2,149 – – – 2,149
T
otal comprehensive income for the period
–

–

–

2,149

–

12,756

–

14,905
T
ransactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation

(234,000)

–

–

–

–

–

–

(234,000)
Dividends t
o shareholders
–

–

–

–

–

(5,713)

–

(5,713)
T
otal contributions by and distributions to shareholders
(234,000)

–

–

–

–

(5,713)

–

(239,713)
Balanc
e at 31 December 2019
372,318

–

24,662

(9,523)

(2,566)

(211,435)

–

173,456

HALF YEAR REPORT FOR PERIOD ENDED 31 DECEMBER 2019 | 26
PGG WRIGHTSON LIMITED
CORPORATE DIRECTORY
Board of Directors
for the six months ended
31 December 2019
Rodger Finlay
Chairman
Joo Hai Lee
Deputy Chairman
David Cushing
Sarah Brown
U Kean Seng
Seah Lim Siang (Ronald)
(retired 31 August 2019)
Executive Team
for the six months ended 31
December 2019
Stephen Guerin
Chief Executive Officer
Julian Daly
General Manager Corporate Affairs/
Company Secretary
Grant Edwards
General Manager Wool
Peter Moore
General Manager Livestock
Peter Newbold
General Manager Real Estate
Peter Scott
Chief Financial Officer
Natalie Thain (Acting)
General Manager Human Resources
Nick Berry
General Manager Retail & Water
Registered Office
PGG Wrightson Limited
1 Robin Mann Place
Christchurch Airport
Christchurch 8053
PO Box 292
Christchurch 8140
Telephone:
0800 10 22 76 (NZ only)
+64 3 372 0800 (International)
Email: enquiries@pggwrightson.co.nz
Auditors
KPMG
Level 5
79 Cashel Street
PO Box 1739
Christchurch 8140
Telephone +64 3 363 5600
Company number 142962
NZBN 9429040323497
Managing your shareholding online:
To change your address, update your payment instructions and to
view your investment portfolio, including transactions, please visit:
www.investorcentre.com/nz
General enquiries can be directed to:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
enquiry@computershare.co.nz
Private Bag 92119, Auckland 1142,
Ne
w Zealand
Telephone +64 9 488 8777
Facsimile +64 9 488 8787
Please assist our registrar by quoting your CSN
or shareholder number.

Fruitfed Supplies Technical Horticultural
Representative Rob Wards with Nick and
Carey White of Mill Orchard in Loburn,
Canterbury, in October 2019.

---

For the six months ended 31 December 2019For the six months ended 31 December 2019
Half Year Results PresentationHalf Year Results Presentation

2020 Half Year Result
Key Points
•
Strong performances in our Fruitfed Supplies and Li
vestock businesses.
o
bidr® (PGW’s online auction trading platform) grown t
o six accredited agencies independent of PGW.
•
Impressive growth in PGW Livestock’s innovative
Go
livestock products, which were launched
as a pilot programme in 2015.
o
Go-Lamb
: in December the millionth lamb was purchased.
o
Go-Beef
: equally impressive growth.
•
Retail and Water group revenue was up $5.0 million
on same period last year.
o
Fruitfed Supplies remains well placed to benefit from t
his growth as it builds on its reputation as the market
leader in delivering technical expertise, products and se
rvice.
•
The distribution arrangements between PGW Retail a
nd PGG Wrightson Seeds continues to
operate seamlessly since the divestment of the Seed
and Grain business in May last year.

2020 Half Year Result
Financial Reporting Changes
•
Financial reporting has changed due to:
1. The impact of the new lease accounting standard
(NZ IFRS 16):
•
The lease standard was adopted from 1 July 2019 using a
modified retrospective approach, meaning
the change only impacts the current period and not the
comparative period’s profit and loss, cash flow
and statement of financial position.
•
For the half-year to 31 December 2019 operating lea
ses are now recognised on balance sheet with a
right of use asset and corresponding lease liability recor
ded. Rental payments for operating leases are
now treated as an interest and principal repayments wit
h an associated depreciation on the right of use
assets.
2. The sale of the Seed and Grain business:
•
For the Statement of Profit and Loss for the comparat
ive period ended 31 December 2018, we have
removed the impact of Seed & Grain from the respective
profit or loss lines and disclosed Seed &
Grain’s result in a separate discontinued operations line
.
•
The comparative periods include the Seed & Grain busin
ess up until the date of sale.

2020 Half Year Result
Trading Performance & Capital Return
•
Half year Operating EDITDA of $34.5 million was 33
% higher than the comparative period at
$23.7 million (excluding the impact of NZ IFRS 16).
•
Net profit after tax of $12.8 million; up $12.5 mi
llion from the comparative period which included
the results of the Seed and Grain business classifi
ed as a discontinued operation.
•
In August 2019 PGW made a capital return to shareh
olders of $234.0 million and declared a
dividend payment of 7.5 cents per share ($5.7 milli
on).

2020 Half Year Result
Half Year Result Operating EBITDA- Three Year Summary
1
A $1.8 million one-off claim event cost which was n
ot recoverable.
2
Negatively impacted by Wool and Real Estate trading
, and a first half timing delay for our Livestock b
usiness.
3
Increase due to strategic review costs.
4
Including NZ IFRS 16.

2020 Half Year Result
Interim Dividend
•
An interim dividend of 9 cents per share has been
declared.
•
Dividend to be fully imputed.
•
To be paid on 3 April 2020 to shareholders on the
share register on 6 March 2020.

2020 Half Year Result
Outlook For FY2020 (Full Year to 30 June 2020)
•
The Directors are pleased with the progress achieved in the
first half and the financial results.
•
At this early stage, the Directors currently expect Operat
ing EBITDA from continuing businesses
for the full year to be around $30 million excluding changes d
ue to the lease accounting
standard. The Directors note there are still many months of t
rading to complete and there could
be some volatility to earnings due to the impacts of COVID-19
on agricultural trade flows.

2020 Half Year Result
Disclaimer
This presentation has been prepared by PGG Wrightso
n (“PGW) with due care and attention.
The Half Year Results 2020 are to 31 December 2019.Forward looking statements regarding the potential
future performance of PGW have been
expressed by management using information currently
available. These are based on current
expectations, estimates and assumptions and do not
guarantee or predict future performance.
Actual results may differ from those predicted as t
here are a number of uncertainties and risks
beyond PGW’s control that may affect the results.Please read this presentation in conjunction with H
alf Year Results 2020 Announcement and Report.

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer PGG Wrightson 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
$474,079 +0.1%
Total Revenue $474,196 -32.3%
Net profit/(loss) from
continuing operations
$12,761 +41.4%
Total net profit/(loss) $12,756 +3,886.3%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.09
Imputed amount per Quoted
Equity Security
$0.035
Record Date 06/03/2020
Dividend Payment Date 03/04/2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.968

$0.295

A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the accompanying market commentary and financial
statements.

Total revenue and total net profit for the prior comparable period,
which impact on the percentage change figures above, include
the results from discontinued operations (Seed and Grain
segment).

The net tangible assets (NTA) per share for the current period
and the prior comparable period are not directly comparable.
The NTA per share for the prior comparable period was based
on 754,848,774 issued ordinary shares. There had been a
capital distribution, followed by a 1 for 10 share consolidation,
during the current period. As a result, the NTA for the current
period is calculated based on 75,484,083 issued ordinary shares
(i.e. post consolidation basis).

Authority for this announcement
Name of person

authorised
to make this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 5533373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

26/02/2020

Unaudited financial statements accompany this announcement.

---

Template
Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer PGG Wrightson Limited
Financial product name/description Ordinary shares
NZX ticker code PGW
ISIN (If unknown, check on NZX
website)
NZREIE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 06/03/2020
Ex-Date (one business day before the
Record Date)
05/03/2020
Payment date (and allotment date for
DRP)
03/04/2020
Total monies associated with the
distribution
1

$6,793,567.47000000
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.12500000
Gross taxable amount
3
$0.12500000
Total cash distribution
4
$0.09000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01588235
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.03500000
Resident Withholding Tax per
financial product
$0.00625000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Julian Daly
Contact person for this
announcement
Julian Daly
Contact phone number 027 5533373
Contact email address jdaly@pggwrightson.co.nz
Date of release through MAP

26/02/2020





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.