Comvita Announces Half Year Result

27 February 2020

COMVITA ANNOUNCES HALF YEAR RESULT

Financial results for the six months ended
31 December
2019
unaudited
31 December
2018
unaudited
Revenue $94m $78m
NPAT* $(12.97)m $(2.68)m
Non-operating items $5.8m $(0.7)m
Underlying EBITDA** $1.34m $1.01m
Net debt $93m $104m
Net operating cashflows $0.9m $6.3m

*NPAT: Net profit after tax
**Underlying EBITDA: earnings before interest, tax, depreciation and amortisation adjusted for non-operating and one-off items. EBITDA, operating
and underlying are non-GAAP measures. We monitor these as key performance indicators and believe it assists investors in assessing the performance
of the core operations of our business.

Headlines:
• $12.97m loss including $2.3m impairment of Australian asset due to bush fires
• Underlying EBITDA +32% year on year
• $15m cost out and business transformation plan launched
• Simplification of business model to take place
• China earnings improved by 30%
• Core products Propolis and Mānuka honey (over 90% of revenue) have known anti-viral and
immunity benefits
• Honey harvest encouraging
• Capital raise announced

$15m cost out and business transformation plan launched and capital raise announced as China
strategy shows early promise

Comvita (NZX:CVT) has today announced performance for the six months ending 31 December 2019,
reporting a net profit after tax (NPAT) at a loss of $12.97m. Non-operating items accounted for $5.8m
of this NPAT loss. This figure included a non-cash impairment of an asset in Australia as a result of the
Australian bush fires and the release of an acquisition fair value adjustment related to Comvita China’s
inventory. Revenue for the period increased by 20.7% as a result of the integration of our new
subsidiary in China, following the purchase of the joint venture in May 2019.

When allowing for one-off costs and non-operating costs, underlying EBITDA** increased by 32% to
$1.34m, highlighting decisions taken during the strategic review conducted last year were already
starting to benefit the company and set the business up to a return to profitability.

Brett Hewlett, Chair, commented “We are hugely disappointed by another negative result which has
seen a loss for the third reporting period in a row. We are working tirelessly to turnaround performance
and deliver the result we know the business is capable of. As we shared at the Annual Shareholders’
Meeting in October 2019, this is a year to stabilise, reset and refocus the business. We are on track to
restore underlying net earnings growth, we are generating positive cashflows, paying down debt and
now have our new CEO, David Banfield, on board. Under David’s leadership, we are setting ourselves up
for a rebound into FY21”.


$15m business transformation plan launched

CEO David Banfield, today launched the Comvita business transformation plan which aims to improve
gross margin by 5.0 percentage points (500bps) and decrease fixed costs by at least $5m per annum
over the next three years. We expect to see fixed cost savings benefit the business in FY21 with the full
benefit seen in FY22/23. Margin improvement is also expected to flow through in FY22/23. Banfield said
“It’s evident from our performance that our current cost base is too high and incapable of supporting
delivery of our long-term earnings growth targets. Our transformation plan is designed to bring the
focus back to the business, simplify operations and ensure we have sustainable profitable returns from
all of our investments”.


Business simplification

David Banfield shared his initial findings having started with Comvita in January 2020. His review
highlighted how the overall business has become overly complex, cumbersome and slow to react to
external factors, both positive and negative. The key to delivering longer-term opportunities will be to
simplify the Comvita operating structure. Banfield said “I see this as phase two of the work the Board
and Executive Director, Brett Hewlett, started during the first half of 2020. Our ability to free up cash by
simplifying and integrating processes will enable us to spend our time focusing on places where we win,
in-market in front of customers and consumers. Here in Paengaroa, New Zealand, we have renamed our
head office as our Market Support Centre to emphasise our role to help markets win”.


China market shows early promise

Comvita completed the acquisition of 100% of its China joint venture in May 2019, having formed a joint
venture with its long-term distributor in July 2017. Winning in China is crucial to enable long-term
profitable growth and as such, we were delighted to see revenue on a like-for-like basis increased by
15%. China’s net contribution increased by 30% year-on-year, despite an increase in marketing
investment of over $1m during this period designed to further grow the Comvita market leadership in
China.

From a commercial perspective, we are seeing sales impacted in the short-term by dramatically reduced
shopper traffic (footfall) as a result of travel bans and people remaining at home following Chinese New
Year. Where people are shopping, we are seeing strong demand for our Propolis and Mānuka honey
products which are known to support immunity. Propolis and Mānuka honey have known anti-viral,
anti-microbial and immunity benefits and represent over 90% of our revenue. Comvita is pleased to be
part of a solution to help consumers build immunity and have been increasing inventory in-market to
ensure we can capture elevated demand once shopper habits return to normal. Historically we have
seen a significant uplift in sales as consumers boost immunity following an outbreak of flu.


Honey harvest encouraging

Comvita is 50% of the way through the extraction of the current 2020 harvest and 25% through testing
the quality. Initial signs are encouraging with volumes well ahead of both 2019 and 2020 budgeted
harvests. All extraction plants are operating at full capacity. A full assessment of quality (Mānuka UMF
grade) will be completed by the end of April at which time Comvita will update the market.


Capital raise

With the announcement of a broad reset of the business with a new Chair, new CEO and a new strategy,
Comvita announced its intention to undertake a capital raise, including a renounceable rights issue to
existing shareholders, enabling it to deleverage the business and build resilience for the company during
this phase. Craigs Investment Partners and Forsyth Barr have been appointed as joint lead managers for
the raise. Details of the rights issue are expected to be announced in mid-March. Hewlett said “While
various industry analysts have expressed their concern over the Comvita gearing, the Board was
comfortable that elevated debt was covered by inventory that increases in value whilst in-stock. The
Board now feels that given the reset mentioned above, the time is right to address the concerns raised
and in the process, de-risk the business”.

Hewlett continued, “Prior to the strategic review, the Comvita business model had become too
inflexible and the business had become too slow or unable to adapt to changes in market conditions.
This meant it was very difficult to mitigate the external impacts of poor honey harvests, daigou channel
or regulatory changes that have negatively impacted our performance and share price over recent
years. Solving these issues has been a real area of focus and we are pleased to have moved to a new
supply model that effectively mitigates downside risk during poor harvests, whilst still giving upside
opportunity. With the purchase of 100% of our China joint venture, we are also able to manage the
daigou channels holistically. This will mean that these short-term trading challenges are largely behind
us.”

Conclusion

Comvita are in the middle of a reset with a new CEO, new Board structure, an absolute focus on
simplifying the business and the product categories where they aim to extend their leadership. The
Board is confident that the business will start to show tangible improvements to underlying
performance as a company and demonstrate the true potential of the Comvita premium global brand
which in turn will be reflected in the market and restore intrinsic value to the share price.


For a more detailed analysis regarding the first half of FY20, please refer to the Financial Statements
and Investor Presentation respectively, loaded onto the Comvita website, (www.comvita.co.nz) and
the NZX (www.nzx.com).

Ends.


For further information:
Comvita Chair, Brett Hewlett, 021 740 160
Comvita CEO, David Banfield, 027 720 9082

Background information
About Comvita (www.comvita.co.nz)
Comvita (NZX:CVT) is a global natural health company committed to the development of innovative products, backed
by ongoing investment in scientific research.

---

Results announcement
for Comvita Limited


Results for announcement to the market
Name of issuer Comvita 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
$93,854 20.7%
Total Revenue $93,854 20.7%
Net profit/(loss) from
continuing operations
$(12,970) (384)%
Total net profit/(loss) $(12,970) (384)%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Board of Directors do not propose to pay an interim
dividend.
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
$2.36 $3.26
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to profit announcement and attachments for
commentary.
Authority for this announcement
Name of person

authorised
to make this announcement
David Banfield, CEO
Contact person for this
announcement
Brett Hewlett, Comvita Chair
Contact phone number +64 21 740 160
Contact email address Brett.Hewlett@comvita.com
Date of release through MAP 27/02/2020

Unaudited financial statements and the investor presentation accompany this announcement.

---

Comvita Condensed Interim Financial Statements 2020 - PI
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
COMVITA LIMITED
FINANCIAL
STATEMENTS
CONDENSED INTERIM

Comvita Condensed Interim Financial Statements 2020 - P1
DIRECTORS’ DECLARATION
CONDENSED INTERIM INCOME STATEMENT
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
CONDENSED INTERIM STATEMENT OF CASH FLOWS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
COMPANY DIRECTORY
2
3
4
5
6
7
8 - 17
18 - 19
CONTENTS

Comvita Condensed Interim Financial Statements 2020 - P2Comvita Condensed Interim Financial Statements 2020 - P3
In the opinion of the directors of Comvita Limited, the interim financial statements and the notes, on pages 3 to 17:
• comply with New Zealand generally accepted accounting practice and fairly state the financial position of the
Group as at 31 December 2019 and the results of their operations and cash flows for the period ended on that
date
• have been prepared using appropriate accounting policies, which unless otherwise stated have been consistently
applied and supported by reasonable judgements and estimates
The Directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the
determination of the financial position of the Group and facilitate compliance of the financial statements with the
Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013.
The Directors consider that they have taken adequate steps to safeguard the assets of the Group, and to prevent
and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide
reasonable assurance as to the integrity and reliability of the financial statements.
The Directors are pleased to present the financial statements of Comvita Limited for the period ended
31 December 2019.
DIRECTORS’ DECL A R ATION
CONDENSED INTERIM INCOME
STATEMENT

Brett Hewlett Luke Bunt
26 February 2020 26 February 2020
For the 6 months ended
In thousands of New Zealand dollars
Note
31 December
2019
Unaudited
31 December
2018
Unaudited
Revenue93,854
77,741
Cost of sales(55,027)
(45,856)
Gross profit38,827
31,885
Other income584
762
Selling and marketing expenses(32,104)
(20,952)
Distribution expenses(5,025)
(4,135)
Research and development expenses(746)
(1,060)
Administrative expenses(12,041)
(9,759)
Operating (loss) before financing costs(10,505)
(3,259)
Finance income6164
1,131
Finance expenses6(3,497)
(2,735)
Net finance costs(3,333)
(1,604)
Share of profit of equity accounted investees911
798
Impairment of equity accounted investees9(2,310)
(101)
(Loss) before income tax(16,137)
(4,166)
Income tax benefit3,167
1,488
Loss for the period(12,970)
(2,678)
Earnings per share:
Basic earnings per share (NZ cents)7(26.17)(5.91)
Diluted earnings per share (NZ cents)7(26.17)(5.91)
The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.

Comvita Condensed Interim Financial Statements 2020 - P4Comvita Condensed Interim Financial Statements 2020 - P5
For the 6 months ended 31 December
In thousands of New Zealand dollars
Share
capital
Foreign
currency
translation
on reserve
Hedging
reserve
Retained
earningsTotal
Balance at 1 July 2018137,744(1,659)(2,348)55,955189,692
Total comprehensive income for the period
Loss after tax for the period---(2,678)(2,678)
Other comprehensive income (net of tax):
Foreign investor tax credits received---1010
Foreign currency translation differences for foreign operations-(1,267)--(1,267)
Effective portion of changes in fair value of cash flow hedges--398-398
Total other comprehensive income for the period-(1,267)39810(859)
Total comprehensive income for the period-(1,267)398(2,668)(3,537)
Transactions with owners, recorded directly in equity
Share based payment---334334
Issue of ordinary shares
- executive share scheme531---531
- staff share scheme19---19
Issue of treasury stock580--305885
Dividend paid ---(918)(918)
Total transactions with owners1,130--(279)851
Balance at 31 December 2018138,874(2,926)(1,950)53,008187,006
Balance at 1 July 2019151,245(4,467)(1,723)28,300173,355
Total comprehensive income for the period
Loss after tax for the period---(12,970)(12,970)
Other comprehensive income (net of tax):
Foreign currency translation differences for equity accounted
investees
-(540)--(540)
Foreign currency translation differences for foreign operations-(408)--(408)
Effective portion of changes in fair value of cash flow hedges--819-819
Total other comprehensive income for the period-(948)819(12,920)(13,099)
Total comprehensive income for the period-(948)819(12,970)(13,099)
Transactions with owners, recorded directly in equity
Share based payments---239239
Issue/ redemption of ordinary shares(12)---(12)
Purchase of treasury stock(318)---(318)
Supplier share scheme502--(43)459
Total transactions with owners172--196368
Balance at 31 December 2019151,417(5,415)(904)15,526160,624
For the 6 months ended
In thousands of New Zealand dollars
31 December
2019

Unaudited
31 December
2018
Unaudited
Loss for the period(12,970)(2,678)
Items that are or may be reclassified subsequently to the income
statement
Foreign currency translation differences for foreign operations (505)(1,760)
Foreign currency translation differences for equity accounted
investees
(540)-
Effective portion of changes in fair value of cash flow hedges1,137553
Foreign investor tax credits received-10
Income tax on these items (221)338
Income and expense recognised directly in other
comprehensive income
(129)(859)
Total comprehensive income for the period (13,099)(3,537)
CONDENSED INTERIM STATEMENT
OF COMPREHENSI V E INCOME
CONDENSED INTERIM STATEMENT
OF CHANGES IN EQUITY
The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.

Comvita Condensed Interim Financial Statements 2020 - P6Comvita Condensed Interim Financial Statements 2020 - P7
As at
In thousands of New Zealand dollars
31 December
2019
31 December
2018
30 June
2019
Note
UnauditedUnauditedAudited
Assets
Property, plant and equipment58,34554,24856,921
Biological assets4,0984,1594,048
Intangible assets and goodwill40,28032,07241,082
Investment in equity accounted investees
9
8,91640,9919,755
Right of use assets11,498--
Other investments2,64882,648
Deferred tax asset9,6423,0826,757
Total non-current assets135,427134,560121,211
Inventory
11
116,139119,040132,192
Trade receivables28,91340,77130,878
Sundry receivables
8
12,74618,35516,289
Cash and cash equivalents
12
10,1998,02610,314
Derivatives
10
383,827192
Tax receivable5082,392553
Assets held for sale--1,414
Total current assets168,543192,411191,832
Total assets303,970326,971313,043
Equity
Issued capital151,417138,874151,245
Retained earnings15,52653,00828,300
Reserves
(6,319)
(4,876)(6,190)
Total equity160,624187,006173,355
Liabilities
Loans and borrowings
12
103,350111,70099,250
Lease liabilities11,646--
Deferred tax liability2,346-3,321
Employee benefits405430446
Total non-current liabilities117,747112,130103,017
Trade and other payables20,43122,21529,471
Employee benefits2,9413,0054,041
Tax payable1,055115739
Derivatives
10
1,1722,5002,420
Total current liabilities25,59927,83536,671
Total liabilities143,346139,965139,688
Total equity and liabilities303,970326,971313,043
For the 6 months ended
In thousands of New Zealand dollars
31 December
2019
31 December
2018
Note
UnauditedUnaudited
Receipts from customers93,63189,095
Payments to suppliers and employees(89,810)(79,091)
Interest received13161
Interest paid(2,374)(2,468)
Taxation paid(573)(1,360)
Net cash flows from operating activities138876,337
Deposit for business combination -(600)
Payment for investment in equity accounted investees-(6,513)
Interest from related parties28-
Payment for loans and prepayments to equity accounted investees(1,304)(922)
Payment for the acquisition of property, plant and equipment(1,731)(9,859)
Receipt from disposal of property, plant and equipment255319
Payment for the acquisition of intangibles(278)(336)
Net cash flows from investing activities(3,030)(17,911)
Proceeds from the issue of shares-550
Payment for redemption of employee shares(12)-
Payment for purchase of treasury stock(318)-
Payment of dividend-(918)
Repayment of lease liabilities(1,527)-
Drawdown of loans and borrowings4,10015,000
Net cash flows from financing activities2,24314,632
Net increase in cash and cash equivalents1003,058
Cash and cash equivalents at the beginning of the period10,3144,947
Effect of exchange rate fluctuations on cash held(215)21
Cash and cash equivalents at the end of the period10,1998,026
Represented as:
Cash and cash equivalents1210,1998,026
Total10,1998,026
CONDENSED INTERIM STATEMENT OF
FINANCIAL POSITION
CONDENSED INTERIM STATEMENT OF
CASH FLOWS
The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.

Comvita Condensed Interim Financial Statements 2020 - P8Comvita Condensed Interim Financial Statements 2020 - P9
1. REPORTING ENTITY
Comvita Limited (the “Company”) is a Company domiciled in New
Zealand, and registered under the Companies Act 1993 and listed
on the New Zealand Stock Exchange (“NZX”). The Company is an
issuer in terms of the Financial Reporting Act 2013 and Financial
Markets Conduct Act 2013. The financial statements of the
Group 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 equity accounted investees.
The principal activity of the Group is that of manufacturing and
marketing quality natural health products, apiary ownership and
management.
2. BASIS OF PREPARATION
(a) Statement of compliance
The Company is a FMC reporting entity for the purposes of the
Financial Reporting Act 2013 and under Part 7 of the Financial
Markets Conduct Act 2013. These Financial Statements comply
with these Acts and have been prepared in accordance with the
New Zealand Equivalents to International Financial Reporting
Standards as appropriate for profit-oriented entities.
The condensed interim financial statements do not include all of
the information required for full annual financial statements and
should be read in conjunction with the group financial statements
as at and for the year ended 30 June 2019.
The condensed interim financial statements were approved by the
Board of Directors on 26 February 2020.
(b) Basis of measurement
The financial statements have been prepared on the historical
cost basis except for derivative financial instruments, financial
instruments designated as fair value through other comprehensive
income and biological assets which are measured at fair value. Fair
values have been determined for measurement and/or disclosure
purposes on the same basis as those applied by the Group in the
financial statements as at and for the year ended 30 June 2019.
There has been a change to reported segments, in the current
period comparatives of the Statement of Financial Position, see
note 4 and note 5 respectively.
(c) Functional and presentation currency
These financial statements are presented in New Zealand dollars
($), which is the Company’s functional currency. Amounts have
been rounded to the nearest thousand.
(d) Use of estimates and judgements
The preparation of condensed interim financial statements in
accordance with NZ IAS 34 Interim Financial Reporting requires
management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
In preparing these condensed interim financial statements, the
significant judgements made by management in applying the
Groups accounting policies and the key sources of estimation
uncertainty were the same as those applied to the financial
statements as at and for the year ended 30 June 2019, except for
those changed with adopting NZ IFRS 16 Leases. The effect of
these changes in accounting policies are shown below.
3. SIGNIFICANT ACCOUNTING
POLICIES
Except as described below, the accounting policies applied in these
condensed interim financial statements are the same as those
applied in the Group’s consolidated financial statements as at and
for the year ended 30 June 2019.
NZ IFRS 16 Leases (NZ IFRS 16) replaces NZ IAS 17 Leases and
removes the classification of leases as either operating leases or
finance leases – for the lessee – effectively treating all leases as
finance leases. This has resulted in the Group recognising right of
use assets and related lease liabilities in the statement of financial
position. Lease payments previously recorded as operating lease
expenses in profit or loss are now split between interest expense
and repayment of finance lease liabilities. Amortisation of right of
use assets is recognised on a straight line basis over the lease term
in profit or loss.
The Group transitioned to NZ IFRS 16 with a date of initial
application of 1 July 2019 using the modified retrospective
approach and has not restated comparative amounts for the
period prior to first adoption. The Group has utilised practical
expedients permitted by NZ IFRS 16 in respect of short-term and
low value leases where appropriate.
The impact of adoption of NZ IFRS 16 in the Group’s Consolidated
Statement of Financial Position in the table below:
Consolidated
Statement of
Financial Position
effect
In thousands of shares
31 December
2019

Unaudited
1 July
2019
Unaudited
Right of use assets 11,49810,743
Lease liabilities(11,646)(10,743)
Change in net assets(148)-
When compared to the accounting policies applied in the prior
comparative period, the adoption of NZ IFRS 16 on the Group’s
Consolidated Statement of Comprehensive Income for the six
months ended 31 December 2019 is summarised in the table below:
31 December
2019

Unaudited
Other operating expenses(1,727)
Depreciation 1,613
Interest expense200
The weighted average incremental borrowing cost applied to lease
liabilities at 1 July 2019 was 5.3%. $924,000 of rental and vehicle
lease expense has not been captured by NZ IFRS 16 as they are
short-term and/or are of low value.
4. SEGMENT REPORTING
Segment information is presented in the condensed interim
financial statements in respect of the Group’s contribution
segments which are the primary basis of decision making. The
contribution segment reporting format reflects the Group’s
management and internal reporting structure.
Performance is measured based on contribution which is a measure
of profitability that the segment contributes to the Group.
4. SEGMENT REPORTING (CONTINUED)
Contribution is used to measure performance as management believes that such information is most relevant in evaluating the results of
certain segments. Inter-segment pricing is determined on an arms-length basis.
Each segment sells Comvita’s range of products. Comvita’s range of products primarily include products with apiary and other natural
ingredients.
The Company is organised primarily by geographic location of its subsidiaries.
The Group has five reportable segments as described below:
Greater ChinaThis segment reports both revenue and related costs for the China and Hong Kong markets. This includes sales
to our China Joint Venture and our share of the China Joint Venture’s profits up to 31 May 2019. From that date,
Comvita China was consolidated, refer note 5.
ANZAustralia and New Zealand (ANZ) segment captures both revenue and related costs for the ANZ market.
Rest of AsiaThis segment captures both revenue and related costs of all of our Asian operations and customers excluding
Greater China.
North AmericaThis segment reports both revenue and related costs for sales to customers in North American.
EMEAThe Europe, Middle East and Africa (EMEA) segment captures both revenue and related costs for the EMEA
markets.
For the 6 months to 31 December 2019 and 31 December 2018 unaudited
In thousands of New Zealand dollars
Contribution
segmentsANZ
Greater
ChinaRest of AsiaNorth AmericaEMEA
Total reportable
segments
Other
segmentsTotal
2019201820192018201920182019201820192018201920182019201820192018
Revenue
31,18236,72140,66418,9088,4978,8808,4148,0533,4443,12792,20175,6891,7272,08493,92877,773
Contribution
8,5659,9374,3901,6851,4951,3059571,178(909)(279)14,49813,82629034914,78814,175
Non attributable (other corporate expenses)
(25,877)(18,196)
Financial income and expenses (Note 6)
(3,333)(1,604)
Other income
584762
Share of profit of equity accounted investees
(Note 9)
1,21011(412)11798
Impairment of equity accounted investees
(Note 9)
(2,310)(101)(2,310)(101)
Net loss before tax
(16,137)(4,166)
Total reportable segment assets
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018

Unaudited
30 June
2019
Audited
Total assets for reportable segments124,834123,019128,162
Other investments2,64882,648
Investment in equity accounted investees8,91640,9919,755
Other unallocated assets167,572162,953172,478
Consolidated total assets303,970326,971313,043
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2020 - P10Comvita Condensed Interim Financial Statements 2020 - P11
5. BUSINESS COMBINATIONS – COMVITA CHINA
Effective 31 May 2019 the Company owned 100% of Comvita Food (China) Limited and Comvita China Limited, collectively referred
to as Comvita China. In the 30 June 2019 financial statements, it was noted that the identification of the fair value of assets and
liabilities acquired was incomplete. A Distribution Network intangible asset has now been recognised effective 31 May 2019 for NZD
$9,870,00 reducing goodwill on acquisition at 31 May 2019 of $17,794,000.
6. FINANCIAL INCOME AND EXPENSES
In thousands of New Zealand dollars
Note
31 December
2019
Unaudited
31 December
2018
Unaudited
Net gain in fair value of derivatives designated at fair value through the income
statement:
- SeaDragon options10-831
Interest income156298
Dividend income82
Finance income1641,131
Interest expense on financial liabilities measured at amortised cost(2,174)(2,468)
Interest expense on lease liabilities(200)-
Net foreign exchange loss(969)(77)
Net loss in fair value of derivatives designated at fair value through the income
statement:
- Other-(184)
- SeaDragon options and convertible loan notes10(154)(6)
Finance expense(3,497)(2,735)
7. EARNINGS PER SHARE
Basic earnings per share - weighted average number of ordinary shares
In thousands of shares
31 December
2019
Unaudited
31 December
2018
Unaudited
Issued ordinary shares at beginning of year 49,55545,164
Effect of shares issued during the period(3)173
Weighted average number of ordinary shares at the end of the period49,55245,337
Basic earnings per share (NZ cents)(26.17)(5.91)
Diluted earnings per share – weighted average number of ordinary shares
In thousands of shares
31 December
2019
31 December
2018
Weighted average number of ordinary shares (basic)49,55245,337
Effect of stock entitlements issued5821,214
Weighted average number of diluted shares at the end of the period50,13446,551
Diluted earnings per share (NZ cents)(26.17)(5.91)
The effect of stock entitlements is nil where the exercise price is higher than the average share price for the year, in accordance with NZ
IAS 33 Earnings per share. When there is a net loss the diluted earnings per share cannot be less than the basic earnings per share.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
8. SUNDRY RECEIVABLES
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Prepayments4,3857,0343,393
Loans to equity accounted investees (note 9c)5,6618,6789,119
Loan receivable – related parties (note 9d)1,2241,1881,206
Other receivables 1,4761,4552,571
Total sundry receivables12,74618,35516,289
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
(a) Investments in Equity Accounted Investees comprises:
Country of
Incorporation
Ownership
Interest Held
Balance
Date
Principal
Activity
Makino Station Limited
New Zealand50%30 JuneApiary and land ownership
Gan Supply JV Limited *
New Zealand33%30 JuneApiary
Putake Group Holdings Limited
New Zealand50%30 June Apiary
Manuka Research Partnership Limited
New Zealand31.77%30 June Research and development
Medibee Pty Limited**
Australia50%30 June Apiary
Apiter S.A.
Uruguay20%31 July
Manufacturing, selling and
distribution
Kaimanawa Honey Limited Partnership
New Zealand50%30 June
Ceased operating
10 November 2019
*On 30 September 2019 Nga Pi Honey Limited changed its name to Gan Supply JV Limited and Gan Enterprises Limited changed its name to Nga Pi Honey Limited.
**Medibee Apiaries has a funding arrangement with HSBC and Comvita has signed a several guarantee for its share of the facility, which is AUD $5,500,000.
(b) Carrying value of Investments in Equity Accounted Investees
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Opening balance – 1 July9,75530,62130,621
Acquisition – Apiter
-9,0489,048
Dividend
--(519)
Impairment
-(101)(2,401)
Share of profit
11798448
Profit elimination *
-5711,623
Transfer share of (profit)/loss to receivable
(310)5462
Foreign exchange movements recognised in other
comprehensive income
(540)-(1,707)
Derecognition of EAI – China
--(26,711)
Derecognition of EAI – SeaDragon
--(709)
Closing Balance
8,91640,9919,755
*The profit elimination (sales less cost of sales) results from the movement in inventories sold from the Group to the equity accounted
investee, still on hand at reporting date.

Comvita Condensed Interim Financial Statements 2020 - P12Comvita Condensed Interim Financial Statements 2020 - P13
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (CONTINUED)
(c) Loans to equity accounted investees
In thousands of New Zealand dollars
Note31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Loan receivable
Makino
3,9113,7203,815
Medibee
-**2,2832,469
Kaimanawa
-*1,1151,133
Putake
925875875
Apiter
573426575
Gan Supply JV
252252252
Comvita China
-7-
Total 8
5,6618,6789,119
All loans to equity accounted investees are repayable on demand.
* The Kaimanawa shareholder loan totalling $1,673,000 was written off when the Joint Venture ceased.
** The loan to Medibee has been impaired, with an impairment expense of $2,310,000 recognised in profit and loss.
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Interest receivable
Makino
577386481
SeaDragon - convertible note
-60-
Apiter
1454
Total
591451485
Interest income from Makino was $96,000 for the six months ended 31 December 2019 (31 December 2018: $96,000). Interest income
from Apiter was $9,000 for the six months ended 31 December 2019 (31 December 2018: $5,000).
(d) Loans to related parties
In thousands of New Zealand dollars
Note31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Nga Pi Honey Ltd (Gan Supply JV)
567567567
Casa Base Trustees (Putake)
657621639
Total 8
1,2241,1881,206
Loans to Nga Pi Honey Limited and Casa Base Trustees are secured over their investment in the equity accounted investee.
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (CONTINUED)
(d) Loans to related parties (continued)
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Interest receivable
Nga Pi Honey Ltd (Gan Supply JV)
--4
Casa Base Trustees (Putake)
925674
Total
925678
The Group’s interest income on the loan to Nga Pi Honey Ltd was $18,000 for the six months ended 31 December 2019 (31 December 2018:
$18,000). Interest income on the loan to Casa Base Trustees was $18,000 for the six months ended 31 December 2019 (31 December
2018: $18,000).
(e) Transactions with equity accounted investees
In thousands of New Zealand dollars
Sale of goods and services
Purchases of goods and services
Transaction value
Balance due fromTransaction valueBalance owing to
31 December 2019
Kaimanawa609
-537*-
Makino 210
-451-
Gan Supply JV6
3348-
Putake46
17336
Apiter -
-1,164-
31 December 2018
Comvita China 1,659
1,342--
Kaimanawa885
88519-
Makino -
-144-
Gan Supply JV12
12572-
Putake-
-772
Apiter -
-2,174-
SeaDragon30
---
* This number includes hives and equipment totalling $518,000 purchased by Kiwibee Medical Limited related to the wind-up of the
Joint Venture.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2020 - P14Comvita Condensed Interim Financial Statements 2020 - P15
10. DERIVATIVES
The table below analyses financial instruments carried at fair value, by valuation method. These are all level 2 on the fair value hierarchy, as
they include inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e., as prices)
or indirectly (i.e., derived from prices). There have been no transfers between levels in either direction during the period.
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Derivatives – SeaDragon options
38832192
Derivatives – SeaDragon convertible loan notes
-2,995-
Total assets
383,827192
Derivatives – liabilities (hedging instrument)
(1,172)(2,500)(2,420)
Total liabilities
(1,172)(2,500)(2,420)
Derivative – assets and liabilities (hedged) and designated at fair value through the income statement
The Group’s Level 2 fair values for simple over-the-counter derivative financial instruments are based on broker quotes. Those quotes
are tested for reasonableness by discounting expected future cash flows using market interest rate for a similar instrument at the
measurement date. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the
Group entity and counterparty when appropriate.
Derivatives – designated at fair value through the income statement – SeaDragon options
The Group determines Level 2 fair value through the application of the Binomial Model (2019: Binomial Model). Inputs include, the share
price (a Level 1 input), risk free rate of the remaining life of the warrant, and the volatility of the share price.
In thousands of New Zealand dollars
Number of
shares
Strike PriceExpiry dateExpected
volatility
Risk free
rate
Options909,090,909$0.003331-03-202075%2.49%
The Convertible Loan Note issued to SeaDragon recognised within ‘Other Investments’ converts to 909,090,909 shares on 31 March 2020.
Fair values
The fair value of all financial assets and liabilities is the same as the carrying amount.
11. INVENTORY
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Raw materials84,31690,90483,996
Work in progress7063,6251,854
Finished goods34,82226,22148,202
Provision (3,705)(1,710)(1,860)
Total inventory116,139119,040132,192
12. LOANS AND BORROWINGS
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings issued and repaid during
the periods presented.
Terms and debt repayment schedule
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
30 June
2019
Audited
Balance at beginning of period99,25096,70096,700
Drawdown from long term borrowings4,10015,0002,550
Balance at end of period103,350111,70099,250
Represented as:
Current loans and borrowings---
Non-current loans and borrowings103,350111,70099,250
Total loans and borrowings103,350111,70099,250
Less: cash and cash equivalents(10,199)(8,026)(10,314)
Total net debt93,151103,76488,936
The Group was in compliance with banking covenants during the period and as at 31 December 2019.
The Group’s loans and borrowings has an expiry date of 1 January 2021.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2020 - P16Comvita Condensed Interim Financial Statements 2020 - P17
13. RECONCILIATION OF THE LOSS FOR THE PERIOD WITH THE NET
CASH FROM OPERATING ACTIVITIES
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
Loss for the period(12,970)(2,678)
Items not involving cash flows:
Depreciation3,9412,253
Amortisation1,1491,068
Gain on disposal of non-current assets (95)(18)
Share based payments240334
Wind-up of equity accounted investees 1,070-
Impairment of equity accounted investees2,310-
Supplier share scheme – inventory purchase459-
Loss on fair value of biological assets72-
Loss/(Gain) on fair value of SeaDragon derivatives 154(825)
Share of profit in equity accounted investees(11)(798)
Loss adjusted for non-cash items(3,681)(664)
Movement in working capital items:
Change in inventories16,053(2,548)
Change in trade receivables1,96515,042
Change in sundry debtors and prepayments103(1,306)
Change in trade and other payables(10,536)(3,391)
Change in derivatives-3,393
Change in tax payable361(3,270)
Change in deferred tax(3,860)(90)
Movement in working capital items from foreign currency translation reserve(363)(1,167)
Other movements:
Movement of deferred tax in equity(222)338
Prepayment to equity accounted investee1,257-
Interest income from investing activities(143)-
Foreign currency reserve(47)-
Net cash from operating activities8876,337
14. RELATED PARTIES
Transactions with key management personnel
Key management and director compensation comprised:
In thousands of New Zealand dollars
31 December
2019
Unaudited
31 December
2018
Unaudited
Short term employee benefits9401,224
Share based payments 90180
Total1,0301,404
Other transactions with key management personnel
Directors and other key management personnel of the Company control 4.17% (30 June 2019: 4.84%, 31 December 2018: 5.29%) of the
voting shares of the Company.
Other related party transactions
Brett Hewlett received $72,000 for consulting services (30 June 2019: $12,000, 31 December 2018: $nil). Luke Bunt received $24,000 for
consulting services (30 June 2019: $nil, 31 December 2018: $nil).
Craigs Investment Partners Limited are considered to be a related party as Neil Craig was Chairman of both entities as at 31 December
2019. Craigs Investment Partners Limited manage the Comvita share purchase program (START Scheme) and facilitated the sale of shares
in the Executive Share Scheme (refer Note 15) for some employees. During the period fees paid to Craigs Investment Partners Limited,
recognised in other expenses for mainly secretarial services totalled $15,000 (six months ended 31 December 2018: $18,000).
15. EXECUTIVE EMPLOYEE SHARE SCHEME
Comvita Limited has an Executive Share Scheme called the Comvita Limited Partly Paid Share Scheme (“The Scheme”). The Scheme is
designed to provide key employees with an opportunity to benefit from share price growth. A summary of the key points is disclosed in the
most recent annual financial statements.
Movements in the number of share entitlements outstanding under the scheme are shown below:
n thousands of New Zealand dollars
December 2019
December 2018
Number of
Entitlements
Weighted average
exercise price
Number of
Entitlements
Weighted average
exercise price
Entitlements on issue
Entitlements outstanding at beginning of period2,028
7.592,0577.67
Entitlements granted-
-5786.33
Entitlements converted to ordinary shares -
-(144)3.67
Entitlements forfeited (700)
8.68(325)7.43
Entitlements outstanding at end of period1,328
7.072,1667.62
16. CAPITAL COMMITMENTS
At 31 December 2019 the Group has committed to spending $4,300,000 over the next three years. The capital commitment mainly relates
to plantation costs.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2020 - P18Comvita Condensed Interim Financial Statements 2020 - P19
DIRECTORS
COMVITA BOARD OF DIRECTORS
Brett Donald Hewlett
Lucas (Luke) Nicholas Elias Bunt
Neil John Craig
Sarah Jane Kennedy
Paul Robert Thomas Reid
Murray John Denyer (retired 16 August 2019)
Robert Malcolm Major (appointed
1 September 2019)
Cheng Dayong (appointed 17 October 2019)
Zhu Guangping (appointed 17 October 2019)
REGISTERED OFFICE
COMVITA LIMITED
23 Wilson Road South, Paengaroa
Private Bag 1, Te Puke 3153
Bay of Plenty, New Zealand
Phone +64 7 533 1426
Fax +64 7 533 1118
Freephone 0800 504 959
Email investor-relations@comvita.com
www.comvita.com
DIRECTORYDIRECTORY
NORTH AMERICA
Comvita USA Inc.
Comvita USA Inc.,
506 Chapala Street
Santa Barbara, CA 93101 | USA
Phone +1 855 449 2201
usacustomerservice@comvita.com
CHINA
Comvita Food (China) Limited
2501 - 2502 No. 7018 Sunhope E-Metro
Caitan Road
Futian District
Shenzhen | China
Phone +86 755 8366 1958
comvita@comvita.com.cn
UNITED KINGDOM
Comvita UK Limited
2nd Floor, 47a High Street
Maidenhead, SL61JT
United Kingdom
Phone +44 1628 779 460
info@comvita.co.uk
NEW ZEALAND
Comvita New Zealand Limited
23 Wilson Road South | Paengaroa
Private Bag 1 | Te Puke 3153
Bay of Plenty | New Zealand
Phone +64 7 533 1426
Freephone 0800 504 959
info@comvita.com
HONG KONG
Comvita Hong Kong Limited
Room 1320 – 1322 Leighton Centre
77 Leighton Road
Causeway Bay
Hong Kong
Phone +852 2562 2335
cs@comvita.com.hk
KOR E A
Comvita Korea Co Limited
18F Gwanghwamun Building,
149 Sejong-daero, Jongno-gu,
Seoul(03186), Korea
Phone +82 2 2631 0041
service.korea@comvita.com
AUSTRALIA
Comvita Australia Pty Limited
10 Edmondstone Street
South Brisbane
Queensland 4101 | Australia
Phone +61 7 3845 1400
Freephone 1800 466 392
Customer Service 1300 653 436
info@comvita.com.au
JAPAN
Comvita Japan Company Limited
Sangenjaya Horisho Bld 4F
1-12-39 Taishido, Setagaya-Ku
Tokyo 154-0004 | Japan
Phone +81 3 6805 4780
info@comvita-jpn.com
BANKERS
WESTPAC BANKING
CORPORATION
Level 8
16 Takutai Square
PO Box 934
Auckland 1140
AUDITORS
KPMG
Level 2
247 Cameron Road
Tauranga 3140
SOLICITORS
SHARP TUDHOPE
Level 4
152 Devonport Road
Private Bag TG12020
Tauranga 3110
SHARE REGISTRY
LINK MARKET SERVICES LIMITED
PO Box 91976
Auckland 1142

---

INVESTOR PRESENTATION
HALF YEAR RESULT FY20 | 27 FEBRUARY 2020
Presented by: David Banfield, CEO | Brett Hewlett, Chair
1

Thispresentationis givenonbehalfofComvitaLimited.
Informationinthispresentation:
•Shouldbereadinconjunctionwith,andis subjectto,ComvitaAnnualReports,InterimReportsandmarket
releasesonNZX;
•Is fromunauditedinterimreportsforthesixmonthsended31December2019;
•Includesnon-GAAPfinancialmeasuressuchasOperating(Loss)/ProfitandOperatingEBITDA. These
measuresdonothavea standardisedmeaningprescribedbyGAAPandthereforemaynotbecomparableto
similarfinancialinformationpresentedbyotherentities. Theyshouldnotbeusedinsubstitutionf o r,or
isolationo f,Comvita'sauditedfinancialstatements. Wemonitorthesenon-GAAPmeasuresaskey
performanceindicatorsandwebelieveitassistsinvestorsinassessingtheperformanceofthecore
operationsofourbusiness.
•Maycontainprojectionsorforward-lookingstatementsaboutComvita. Suchforward-lookingstatementsare
basedoncurrentexpectationsandinvolverisksanduncertainties. Comvita’sactualresultsorperformance
maydiffermateriallyfromthesestatements;
•Includesstatementsrelatingtopastperformance,whichshouldnotberegardedasa reliableindicatorof
futureperformance;
•Is forgeneralinformationpurposesonly,anddoesnotconstituteinvestmentadvice;and
•Is currentatthedateofthispresentation,unlessotherwisestated.
Whileallreasonablecarehasbeentakenincompilingthispresentation,Comvitaacceptsnoresponsibilityforany
errorsoromissions.
AllcurrencyamountsareinNewZealanddollars,unlessotherwisestated.
IMPORTANT NOTICE

AGENDA
1.Introductions
2.Interim Results FY20
3.Cashflow, Inventory and Net Debt
4.Honey Harvest Update
5.Market Segment Performance
6.Key Findings & Turnaround Plan
7.Q&A

INTRODUCTIONS
4

CORONAVIRUS
We are closely monitoring the evolving situation with the Coronavirus in China and
around the world. Our first thought is for our Comvita team and all those that have
been affected.
We have instigated a dedicated team to monitor best practice and ensure we are doing
everything possible to support the team. Foremost, this includes regular contact with
our employees and business partners, to ensure all practicable precautions continue to
be taken from a safety and wellbeing perspective.

INTERIM RESULTS
FY20
6

*Underlying EBITDA is a non-GAAP measure. We monitor this as a key performance indicator and believe it
assists investors in assessing the performance of the core operations of our business.
HEADLINES
•Reported NPAT -$(12.97)m
•Non-operating items - $5.8m including $2.3m impairment of
Australian joint venture due to bush fires
•Underlying EBITDA* +$1.3m +32.5%
•Revenue +20.7% primarily due to China market integration
•China and North America show opportunities for profitable growth
•China earnings +30%on a like-for-like basis
•$15m business transformation plan targeting
•500 basis points (bps) improvement in gross margin per annum
•$5m cost reduction per annum
•Business simplification underway
•Capital raise to deleverage balance sheet including rights offer
•Directors declared that no interim dividend will be paid
7

HALF YEAR IN REVIEW
•NET PROFIT AFTER TAX
$(12.97)m
•NON-OPERATING EBITDA ITEMS
$(6.7)m vs $0.7m in PCP*
•ONE-OFF EBITDA ITEMS
$3.4m vs $0.4m in PCP
•UNDERLYING EBITDA**
+$1.3mvs +$1.0m+32.5% vs PCP
•GROUP REVENUE
$94m + 20.7% vs PCP
•CHINA MARKET –EARNINGS GROWTH
+30%
•INVENTORY
-$2.9m vs PCP
-$16.0m vs June close
•NET DEBT
$93.2m -11.4% vs PCP
•POSITIVE OPERATING CASHFLOW
+$887k
* Previous comparable period.
**Underlying EBITDA is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists investors
in assessing the performance of the core operations of our business.

UNDERLYING RESULT
RECONCILIATION
Note
31 Dec
2019
NPAT
$’000
31 Dec
2019
EBITDA
$’000
31 Dec
2018
NPAT
$’000
31 Dec
2018
EBITDA
$’000
Per financial statements​(12,970)(8,829)​(2,678)1,325
Add back non-operating items:​
Comvita China- release ofinventory fair valueA2,6743,567
Impairment of equity accounted investment2,3102,310
Equity accounted investees on wind up and loan
write off
B669669
Fair valuemovements-SeaDragon​C154154(724)(724)
Fair value movements –biological assets​​D5272
Other(20)(20)
Total adjustments5,8396,752(724)(724)
Operating result(7,131)​(2,077)(3,402)601
One off costs incurred vs PCP:
Inventory write downs1,3001,806
Divestment of Nelson site360500
Restructuring related costs700970295410
Savings from restructure505700
Other increases(395)(560)
Total adjustments2,4703,416295410
Underlying result(4,661)1,339(3,107)1,011
EBITDA: earnings before interest, tax, depreciation and amortisation and EBITDA operating is adjusted for non-operating
items. EBITDA, operating and underlying are non-GAAP measures. We monitor these as a key performance indicators
and believe it assists investors in assessing the performance of the core operations of our business.

CASHFLOW, INVENTORY
& NET DEBT
10

CASHFLOW
Cash flow movements
31 Dec 2019
unaudited
31 Dec 2018
unauditedMovement
Operating cash inflow8876,337(5,450)
Investing activities(3,030)(17,911)14,881
Financing activities2,24314,632(12,389)
Cash and cash equivalents10,1998,0262,173
•Operating cash inflow $887k
•Operating cashflow consistent with operating
loss for 6 months to 31 December 2019 less
working capital improvements including
inventory reduction of $16m
•Prior period operating cashflow had one-off
timing inflow of debtors overdue at prior
period end
•Investing cashflow is lower than prior period
from minimal capital expenditure

INVENTORY & NET DEBT
•Inventory reduced by $2.9m vs 31 December 2018
and $16.0m vs 30 June 2019
•Finished goods reduction across all major markets
•Net debt decrease of $10.6m vs 31 December 2018
due to working capital movements and an increase
of $4.2m vs 30 June 2019 due to net cash outflow
primarily from investing activities
•Banking facility extended to 2021
Key Balance Sheet Ratiosas at
31 Dec
2019
unaudited
$’000
31 Dec
2018
unaudited
$’000
30 June
2019
audited
$'000
Total assets303,970326,971310,043
Total inventory116,139119,040132,192
Trade receivables28,91340,77130,878
Working capital142,944164,576155,161
Net debt93,151103,76488,936
Total equity160,624187,006173,355
Net debt to equity ratio58%55%51%
Weighted average shares on
issue49,55245,33746,302

HONEY HARVEST
U P DAT E
13

14
Early national crop indicators are positive
•Strong settled summer after a volatile spring
•Good flowering and nectar flow reported across the country
•Mānuka harvest underway
•Early quality results promising
Comvita crop forecasted to exceed budget and prior year
•Mānuka harvest underway - 50% harvested and 25% tested
•Expect to exceed 2019 actuals and 2020 plans
•All extraction plants operating at capacity
•Hives re-queened with improved genetics
•New queen breeding facility performing well, breeder queens
introduced to the network
HONEY CROP 2020

MARKET SEGMENT
PERFORMANCE
15

NORTH AMERICA
$8.4m
(2018 : $8.1m)
Figures are based on unaudited results to 31 December2019.Other sales of $1.7m (2018: $2.1m).
SALES FOR THE HALF YEAR ENDED 31 DECEMBER 2019
EMEA***
$3.4m
(2018 : $3.1m)
REST OF ASIA
$8.5m
(2018 : $8.9m)
CHINA*
AUSTRALIA
/ NZ (ANZ) & CBEC**
$31.2m
(2018 :$36.7m)
16
* China sales include Hong Kong.To enable comparison, the 2018 sales includes the in-market sales of the China Joint Venture (JV) which were not included in Comvita group
revenue
** Cross Border E-commerce
*** Europe, Middle East and Africa
$40.7m
(2018 : $38.1m)
16

CHINA ( LIKE- FOR- LIKE PERFORMANCE)
First full six month period of China integration
•Like-for-like revenue in China +15%
•$1m incremental investment in marketing activity
•China contribution +30%
6 months6 months
Variance
Fav/(Unfav)
Variance %
NZD ($’000)
Dec-2019Dec-2018
Sales29,66925,8423,82715%
Net Contribution3,7442,88685830%
Net Contribution %12.6%11.2%
Net Contribution is a non-GAAP measure. We monitor this as a key
performance indicator and believe it assists investors in assessing the
performance of the core operations of our business
.

CHINA includingHONG KONG
•Total revenue plus 115% due to consolidation of China subsidiary
•Net contribution +160% due to consolidation of China subsidiary
•Hong Kong performance negatively impacted by unrest
•Hong Kong contribution -30%
6 months6 months
Variance
Fav/(Unfav)
Variance %
NZD ($’000)
Dec-2019Dec-2018
Sales40,66418,90821,756115%
Net Contribution4,3901,6852,704160%
Net Contribution %11%9%2%

19
IMPACT OF CORONAVIRUS ON PERFORMANCE
General
•Propolis and Mānuka honey (over 90% of revenue) have known anti-viral, anti-microbial and immunity benefits,
we are pleased to be part of a solution to help our consumers build general immunity
•Where footfall is unaffected by the Coronavirus, revenue +35% vs PCP
•In China, footfall is significantly reduced in offline outlets
•Once footfall recovers, sales growth is expected to perform at +30%
•Where online providers are operating normally, sales have increased by 38%
•Currently forecasting a 10% revenue impact on our second half performance in China
•In ANZ, footfall through key tourist dominant partners is materially reduced along with daigou channels who are
unable to supply their in-market customers (outside ANZ)
•We are forecasting a second half revenue impact of up to 20% in ANZ
•Good inventory levels in-market. Boosting local inventory to meet anticipated inflated demand
•We believe any impacts to our business are short-term related and as soon as footfall returns our performance will
show material improvement
•Naturally it is an evolving situation and we will update the market as new information emerges

REST OF ASIA
Revenue -4% due to timing of activity in Japan
•Strong double digit sales growth in Korea
•First flagship store launched in Malaysia
Contribution +15% due to emphasis on profitable growth
6 months 6 months
Variance
Fav/(Unfav)
Variance %
NZD ($’000)
Dec-2019Dec-2018
Sales8,4978,880(383)-4%
Net Contribution1,4951,30519015%
Net Contribution %18%15%3%
20

21
ANZ & CBEC
New Zealand export changes
•Changes to MPI small parcel export requirements impacted
revenue by -$2.7m on last year, however, work between the
industry and MPI has sales being exported once again though
not expected to recover the loss in this year
Australian customer overstock in PCP
•Revenue -$4.3m on last year due to a customer purchasing 10
months stock artificially inflating sales in PCP; the customer has
now cleared the stock and orders are coming back to normal
6 months 6 months
Variance
Fav/(Unfav)
Variance %
NZD ($’000)
Dec-2019Dec-2018
Sales31,18236,721(5,539)-15%
Net Contribution8,5659,937(1,372)-14%
Net Contribution %27%27%0%

NORTH AMERICA
•Revenue +4.5% with good performance across major customers
•Contribution margin impacted by customer set up costs
•Comvita.com shows market potential with Black Friday period sales
+51% year-on-year, in which half the sales came from new customers
•Launched new Comvita Kids line in Whole Foods nationally in
September, supported by a successful PR campaign gaining
awareness with natural food focused parents
•New listings in several hundred new independent and regional
natural health accounts
6 months 6 months
Variance
Fav/(Unfav)
Variance %
NZD ($’000)
Dec-2019Dec-2018
Sales8,4148,0533614.5%
Net Contribution9571,178(221)(18.7%)
Net Contribution %11%15%(3.3%)

EUROPE, MIDDLE EAST
AND AFRICA (EMEA)
•Revenue +10% vs PCP
•Contribution -$630K due to clearance of slow moving and obsolete stock
•New distribution to come online in second half of the year supporting
double digit growth
6 months 6 months
Variance
Fav/(Unfav)
Variance %
NZD ($’000)
Dec-2019Dec-2018
Sales3,444 3,127 31710%
Net Contribution(909)(279)(630)226%
Net Contribution %-26%-9%-17%
23

KEY FINDINGS
AND TURNAROUND PLAN
24

KEY FINDINGS
•Market leader in Mānuka and key bee products categories
•Technical leader in Mānuka
•Quality leader in honey and propolis
•Role as category guardian
•Highly relevant to current macro economic and megatrends
•Highly capable and committed team members
Arotahi

•Loss of focus, complicatedbusiness
•Organisationdisconnected from market needs and slowto react
•Unsustainable costs
•COGS
•OPEX
•Elevated gearing covered by saleable inventory but key processes
inefficient
Arotahi
KEY FINDINGS

AROTAHI (FOCUS)
•Focus on key growth markets – China and North America
•Total addressable market US$1.5 bn
•Profitable growth ANZ and all other regions
•$15mbusiness transformation
•Simplified and integrated operations
•Capital structure supporting growth

SIZE OF PRIZE –CHINA
•Total addressable market US$1.2 bn
•Imported honey 12.5% of total
•Double digit CAGR forecasted
•Mānuka / imported forecast to over index
•Key attribute – Trust and heritage
28
Comvita in China
•Comvita is the market leader in China
•Significant brand equity
•Experienced team in-market
•Focus on delivering model city performance in China - $500m
•Modelling market potential on a per capita basis
•Full integration of former JV to be completed
•Investment in brand and capability

•Total addressable market US$340m
•Current imported honey market circa 30% -US$102m
•High single figure CAGR expected over the next five years
•Strong adoption by millennials and rapidly expanding availability through
online and mass retail
Comvita in North America
•Encouraging performance across major customers
•Black Friday results show the potential to significantly grow overall business
•New distribution agreements in place
•Disruptive market leading D2C
•Geographical balance to group (Asia / North America)
Comvita in ANZ
•Our home market where we need to protect leadership
•Stabilise revenue and associated earnings
•Investment in brand equity
•Organisation simplification
SIZE OF PRIZE –NORTH AMERICA

$15m transformation programme launched
Goals
•500 bps improvement in gross margin per annum
•$5m reduction in fixed costsper annum
•Automation and integration of key internal processes to improve
efficiency, scalability and accuracy
•Simplification of operating companies and investment – Supply and
Brand side
ACTIONS –AROTAHI
( FOCUS)

•In order to reduce risk and build resilience for the company during
strategic reset and business transformation programme, Comvita
plans to recapitalise the business
•This will include a renounceable rights issue to existing shareholders
•Details will be announced in the coming weeks
•Craigs Investment Partners and Forsyth Barr have been appointed as
joint lead managers
CAPITAL RAISE

QUESTIONS AND
ANSWERS
32

33
THANK YOU