PGW delivers positive result in challenging year

PGG Wrightson Ltd | NZX Announcement 1
18 AUGUST 2020
PGW delivers positive result
in challenging year

Group Performance
PGG Wrightson Limited* (PGW) announced for the year ended 30 June 2020 a full year operating
earnings before interest, tax, depreciation and amortisation (Operating EBITDA)** of $45.2 million. This
includes the impact of the new accounting lease standard which has led to an increase of Operating
EBITDA of $21.7 million. Excluding the impact of the lease adjustment, Operating EBITDA was $23.4
million. Net profit after tax (NPAT) was $7.8 million.
PGW Chairman Rodger Finlay said, “While the result for FY2020 was not what we had targeted at the
start of the year it nevertheless reflects well on the resilience of the business, our people and the support
from our customers in what has been an extraordinary year. To deliver a trading performance similar to
last year after the level of disruption that we have experienced is heartening and demonstrates that the
business is in good health.”
“I am particularly proud of the manner in which our people stepped up and continued to serve customers
and the sector as a provider of essential services through the lockdown and various alert levels. Our
team adapted quickly and a number of our business units traded right through this demanding period
and as a Group, PGW has recorded a very credible operating result. Trading in line with the prior year
is positive when you consider that our Real Estate, Water and Wool businesses and our Livestock
saleyards were effectively unable to operate for the duration of the lockdown.”
Reflecting on some of the other events and milestones during the year:

During the first half to 31 December 2019, the business traded well to record an Operating EBITDA
(excluding the impact of the new accounting standard for leases) of $23.7 million, (up 33% on the
prior comparative period) and an NPAT of $12.8 million from continuing operations.

Operating EBITDA for the full year (excluding the impact of the new lease standard) was within our
guidance range at $23.4 million.

Second half trading results were impacted by the global pandemic and consequential operational
disruption.

A shareholder approved capital distribution of $234 million was made on 14 August 2019.

Targeted cost savings in excess of $2.5 million were realised through the implementation of
initiatives to recalibrate our corporate support functions following the divestment of the Seed & Grain
business.

There has been positive uptake in the use of the bidr® online platform for livestock trading during
the pandemic lockdown and various alert levels, with more customers and agents seeing the benefits
of this channel for their businesses.

The successful initial launch of PGW’s eCommerce offering went live in June and we are seeing
increasing customer interest and appetite for this online channel.

In recognition of the priority PGW places on its people and its responsibilities as a good employer,
all employees as at 1 July 2020 are now paid at least the equivalent of a living wage.

With the reduced trading and disruption to our Real Estate, Water, Livestock and Wool businesses
over the period of the COVID-19 lockdown, PGW applied for and received $4.1 million through the
government wage subsidy scheme.
Mr Finlay said “While the Board is pleased with the manner in which the business has come through the
year, the trading results are back on pre-COVID-19 expectations and the effects of the global pandemic
are continuing to be felt. Export demand and prices for New Zealand agricultural commodities has
remained strong despite the fact that food service remains compromised in many markets internationally.”
“While we remain optimistic about the prospects for the sector it is prudent to be wary given the degree
of uncertainty being experienced throughout much of the world. In view of that background, the Board
has determined to take a cautious distribution approach in the interim, while greater certainty is obtained
about how these events will flow through and impact demand for agri-inputs in the year ahead.”

PGG Wrightson Ltd | NZX Announcement 2
“Reflecting the extraordinary nature of this year and ongoing global challenges and the fact that the
company has made a net loss of $4.9 million in the second half, the Board has determined not to pay a
final dividend. However, the Board intends to resume the payment of regular dividends when the market
stabilises.”
Retail & Water Group
PGW CEO, Stephen Guerin said, “Retail & Water’s Operating EBITDA was a pleasing $34.7 million
($22.0 million excluding NZ IFRS 16, up $2.7 million on the FY2019 result).”
“We continue to see anecdotal evidence of market share gains attributable to our strong technical
offering. Our customers value the support they receive through our field representatives whom are
supported by our Technical and R&D teams.”
“Our Rural Supplies business and market leading Fruitfed Supplies business again performed well. The
horticultural sector has experienced good returns and yields and maintains a positive outlook. This was
highlighted recently by the record levels paid in the recent kiwifruit licence tenders. Our business is
diversified across a variety of crops and continues to adapt to market needs with Fruitfed Supplies
maintaining a strong share in grapes, pipfruit, stone fruit and kiwifruit, and we are increasing our
presence in avocados and cherries which continue to see investment.”
“Our independent Agritrade wholesale business continued its growth year-on-year with revenue up on
the same period last year. This was achieved through growth in our existing range as well as product
acquisition and providing distribution services for existing suppliers looking to Agritrade to get their
products to market.”
Agency Group
“Our Agency group incorporates the Livestock, Wool and Real Estate businesses. Trading for this group
is weighted towards the second half of the financial year. Operating EBITDA was $15.7 million ($8.4
million excluding NZ IFRS 16), compared to $15.9 million for the comparative year’s period.”
“Our Livestock business experienced a strong first six months underpinned by buoyant livestock trading
volumes and values. In the second half of the year widespread drought conditions resulted in high
demand and a shortage of processing capacity. The pandemic impacted the supply chain in
international markets and further restrictions on processing capacity were implemented when the
country went into Level 4 lockdown. These events, together with the significant impact caused through
the temporary closure of saleyards under level 4 and 3 lockdowns, had a significant impact.”

“The benefits of bidr®, our real time online trading platform, came into stark focus during the lockdown
where necessity showcased the advantages of this channel and innovation. The bidr® team responded
well and accelerated modifications to the platform to permit access for new users in response to demand,
as well as the launch of the new hybrid auction option.”
“Requests for our Go grazing contracts continued to grow strongly with the balance peaking at just under
$50 million. Customer demand for the convenience and versatility of the Go programme continues, and
we expect to see further growth in the current year.”
“PGW Wool has come through a difficult year with depressed crossbred wool prices and associated
worldwide wool demand challenges through the global pandemic. COVID-19 is arguably the most
significant issue the wool industry has experienced in a generation and it has impacted the international
wool supply chain. This has resulted in a decline in wool demand, orders, and prices across all wool
types.”
“As a consequence of the pandemic, our wool brokering business has facilitated the sale of less wool
bales and at lower margins. Farmer growers have elected to hold wool rather than sell into the current
market. Additionally, wool auctions were placed on hold for two months.”
“The rural real estate market continued to be challenged with lower volumes in all sectors throughout
the financial year, while the lifestyle and residential markets in the provinces remained positive.
Notwithstanding the challenging macro conditions, PGW Real Estate improved market share in its key
lifestyle segment and rural regions.”

PGG Wrightson Ltd | NZX Announcement 3
Outlook
Mr Finlay said, “While there is scope for optimism with good demand and commodity pricing for New
Zealand export produce, there remains a degree of caution with continuing volatility in global markets.
Consumers in some key export markets have been shielded from the impacts of COVID-19 through
unprecedented fiscal support which has underpinned retail spending on food. However, with infection
rates continuing to increase globally and secondary lockdowns occurring, a degree of uncertainty
remains as to how this will impact trade flows over the coming year.”
“In this context, while it is too early to provide guidance about expectations for FY2021, there is a healthy
measure of optimism with solid production returns continuing in dairy, red meat and horticulture. We
are seeing growers and farmers gear up for the busy spring period and would expect to be in a position
to provide a trading update by the time of our Annual Shareholders Meeting in October.”
All media enquiries to:

Julian Daly
General Manager Corporate Affairs
PGG Wrightson Limited
Mobile: +64 27 553 3373

*All references to PGG Wrightson Limited or the Group 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. Please refer to our full accounts for details of how Operating EBITDA relates
to GAAP. 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

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PGG
WRIGHTSON
LIMITED
$
CONSOLIDATED
FINANCIAL
STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2020

PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
DIRECTORS’ RESPONSIBILITY STATEMENT
FOR THE YEAR ENDED 30 JUNE 2020
The Directors are responsible for ensuring that the consolidated financial statements give a true and fair view of the
financial position of the Group as at 30 June 2020 and the financial performance and cash flows for the year ended
on that date.
The Directors consider that the consolidated financial statements of the Group have been prepared using appropriate
accounting policies, consistently applied and supported by reasonable judgements and estimates and that all of the
relevant financial reporting and accounting standards have been followed.
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 consolidated financial statements
with the Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013.
The Directors are pleased to present the consolidated financial statements for PGG Wrightson Limited and its
controlled entities (together the “Group” ) set out on pages 1 to 45 for the year ended 30 June 2020.
The consolidated financial statements contained on pages 1 to 45 have been authorised for issue on 17 August 2020.
For and on behalf of the Board.
Rodger Finlay David Cushing
Chairman Director and Audit Committee Chairman

PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 30 June 2020
PGG WRIGHTSON LIMITED | 1
2020* 2019**
NOTE $000 $000
Continuing operations
Operating revenue 1 788,036 798,834
Cost of sales 2 (583,855) (579,280)
Gross profit 204,181 219,554

Other income 292 241
Employee expenses 6 (113,964) (123,137)
Other operating expenses 3 (45,327) (71,721)
Equity accounted earnings/(losses) of investees 8 (40)
Operating EBITDA 27(D) 45,190 24,897

Non–operating gains/(losses) 132 (2,170)
Impairment and fair value gains/(losses) 4 (807) (3,187)
Depreciation and amortisation expense (29,464) (9,333)
EBIT 27(D) 15,051 10,207

Net interest and finance costs 5 (5,032) (6,067)
Profit from continuing operations before income tax 10,019 4,140

Income tax benefit/(expense) 7 (2,886) 370
Profit from continuing operations, net of income tax 7,133 4,510

Discontinued operations
Results from discontinued operations, net of income tax (371) (6,985)
Gain on sale of discontinued operations, net of income tax 1,078 134,281
Profit/(loss) from discontinued operations, net of income tax 707 127,296
Net profit after tax
7,840 131,806
Profit attributable to:
Shareholders of the Company 7,840 131,123
Non-controlling interest – 683
Net profit after tax
7,840 131,806
Basic & diluted earnings per share (EPS)
2020 2019
$ $
Basic & diluted EPS on issued ordinary shares at the end of the period 8, 27(D) 0.104 0.174
Basic & diluted EPS on issued ordinary shares at the end of the period – continuing operations 8, 27(D) 0.094 0.006
Basic & diluted EPS on a weighted average basis 8 0.050 0.174
Basic & diluted EPS on a weighted average basis – continuing operations 8 0.045 0.006
* The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. Under this approach, the 2020
reporting period includes NZ IFRS 16 adjustments; however, the comparative period excludes such adjustments. Excluding NZ IFRS 16, the
Operating EBITDA and NPAT for the June 2020 period were $23.4 million and $9.8 million, respectively. Refer to page 3 for the impact of
the standard on the June 2020 profit or loss.
** The 2019 comparatives have been restated to present the Standardbred business as a discontinued operation and reclassifications. Refer to Note 26
Basis of Preparation.
The accompanying notes form an integral part of these consolidated financial statements.

2 | PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2020
2020 2019
NOTE $000 $000
Net profit after tax 7,840 131,806
Other comprehensive income/(loss):
Continuing operations
Items that will never be reclassified to profit or loss
Changes in fair value of equity instruments – 21
Remeasurements of defined benefit liability 18 (3,942) (6,101)
Deferred tax on remeasurements of defined benefit liability 7 1,104 703
(2,838) (5,377)
Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations – (884)
– (884)
Other comprehensive income/(loss) for continuing operations (2,838) (6,261)
Discontinued operations
Items that will never be reclassified to profit or loss
Changes in asset revaluation reserve – 403
Other comprehensive income/(loss) for discontinued operations – 403
Total other comprehensive income/(loss) for the period (2,838) (5,858)
Total comprehensive income for the period 5,002 125,948

Total comprehensive income/(loss) attributable to:
Shareholders of the Company 5,002 125,282
Non-controlling interest – 666
Total comprehensive income for the period 5,002 125,948
The accompanying notes form an integral part of these consolidated financial statements.

PGG WRIGHTSON LIMITED | 3
PGG WRIGHTSON LIMITED
IMPACT OF NZ IFRS 16 LEASES
For the year ended 30 June 2020
On 1 July 2019, the Group adopted NZ IFRS 16 Leases using the modified retrospective approach. The Group recognised right-of-use assets
($109.17 million) and a corresponding amount of lease liabilities ($106.63 million) and make good provisions ($2.54 million) as at 1 July 2019. The
transition to NZ IFRS 16 did not have an impact on retained earnings as at that date.
Under the modified retrospective approach, comparative information is not restated and continues to be reported under NZ IAS 17. Refer to Note
15 Right-of-Use Assets and Lease Liabilities for the change in accounting policy in respect of leases.
The impact of NZ IFRS 16 on the consolidated financial statements for the year ended 30 June 2020 is significant. The following tables show the
impact on the consolidated statement of profit or loss, consolidated statement of financial position and consolidated statement of cash flows.
These tables are intended to provide comparability to the prior year results.
A. Impact on the consolidated statement of profit or loss
2020
2020 EXCLUDING
INCLUDING NZ IFRS 16 NZ IFRS 16
NZ IFRS 16 IMPACT (NON-GAAP) 2019
$000 $000 $000 $000
Continuing operations
Operating revenue 788,036 – 788,036 798,834
Cost of sales (583,855) – (583,855) (579,280)
Gross profit 204,181 – 204,181 219,554
Other income 292 – 292 241
Employee expenses (113,964) – (113,964) (123,137)
Other operating expenses (45,327) (21,744) (67,071) (71,721)
Equity accounted earnings/(losses) of investees 8 – 8 (40)
Operating EBITDA 45,190 (21,744) 23,446 24,897
Non-operating gains/(losses) 132 (853) (721) (2,170)
Impairment and fair value gains/(losses) (807) 852 45 (3,187)
Depreciation and amortisation expense (29,464) 20,265 (9,199) (9,333)
EBIT 15,051 (1,480) 13,571 10,207
Net interest and finance income/(expense) (5,032) 4,183 (849) (6,067)
Profit/(loss) from continuing operations before income tax 10,019 2,703 12,722 4,140
Income tax benefit/(expense) (2,886) (756) (3,642) 370
Profit/(loss) from continuing operations, net of income tax 7,133 1,947 9,080 4,510
Discontinued operations
Profit/(loss) from discontinued operations, net of income tax 707 1 708 127,296
Net profit after tax 7,840 1,948 9,788 131,806

4 | PGG WRIGHTSON LIMITED
B. Impact on the consolidated statement of financial position
2020
2020 EXCLUDING
INCLUDING NZ IFRS 16 NZ IFRS 16
NZ IFRS 16 IMPACT (NON-GAAP) 2019
$000 $000 $000 $000
Total current assets 280,212 – 280,212 495,292
Total non-current assets 179,241 (105,382) 73,859 70,262
Total assets 459,453 (105,382) 354,071 565,554
Total current liabilities 179,669 (16,049) 163,620 159,714
Total non-current liabilities 123,083 (91,281) 31,801 7,576
Total liabilities 302,751 (107,330) 195,421 167,290
Total equity as at 30 June 2020 156,702 1,948 158,650 398,264
C. Impact on the consolidated statement of cash flows
2020
2020 EXCLUDING
INCLUDING NZ IFRS 16 NZ IFRS 16
NZ IFRS 16 IMPACT (NON-GAAP) 2019
$000 $000 $000 $000
Net cash inflow/(outflow) from operating activities 34,227 (17,586) 16,641 (49,001)
Net cash inflow/(outflow) from investing activities (11,020) – (11,020) 379,280
Net cash inflow/(outflow) from financing activities (216,830) 17,586 (199,244) (130,714)
Total cash inflow/(outflow) (193,623) – (193,623) 199,565
PGG WRIGHTSON LIMITED
IMPACT OF NZ IFRS 16 LEASES CONTINUED
For the year ended 30 June 2020

PGG WRIGHTSON LIMITED | 5
PGG WRIGHTSON LIMITED
SEGMENT REPORT
For the year ended / as at 30 June 2020
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:
– Agency: This segment derives its revenue primarily from
commissions in respect of rural Livestock, Wool, Insurance, Real
Estate and Finance transactions. This segment also derives revenue
from wool and velvet product sales, and interest revenue from its
Go receivables (refer to Note 12 Go Livestock Receivables for further
explanation regarding this programme).
– Retail & Water: This segment includes Rural Supplies and Fruitfed
Supplies retail operations, PGG Wrightson Water, PGW Consulting,
Agritrade, ancillary sales support and supply chain functions. This
segment derives its revenue primarily from the sale of goods as
well as the design, installation and servicing of irrigation solutions.
– Other: Other relates to certain Group Corporate activities
including Governance, Finance, Treasury, Risk and Assurance, HR,
IT, Marketing and other support services (including corporate
property services) and includes consolidation/elimination
adjustments. The Marketing function derives sales revenue from its
rewards and on-charging programmes.
– Discontinued operations: Relates to PGG Wrightson Seeds
Holdings Limited together with its subsidiaries and investments
in jointly controlled entities (formerly the Seed & Grain segment)
which was sold in May 2019; and PGW Rural Capital Limited
(PGWRC) which 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. Also includes the
Standardbred business (previously included within Agency) which
was closed in January 2020.
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. Similarly,
the profit/loss for each business unit combines to form total profit/
loss of the Agency and Retail & Water business segments. Certain other
revenues and expenses are recorded at the Corporate level for the
Corporate functions noted above.
Corporate costs allocation
The Group allocates certain corporate costs to an operating segment
where they can be directly attributed to that segment or using the
following methods:
– IT hardware, support, licence and other costs are allocated on a per
user basis.
– Property 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 to the operating segment to which overdue accounts
relate.
Other costs such as non-operating gains/losses, impairment and fair
value gains/losses, 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 Governance, Finance,
Treasury, Risk and Assurance and HR 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.

6 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 7
C. Operating Segment Information
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 72,154 84,171 604,409 577,899 2,816 4,962 – – 679,379 667,032
Commission revenue 88,770 105,142 97 80 112 133 – – 88,979 105,355
Construction contract revenue – – 13,640 20,985 – – – – 13,640 20,985
Interest revenue on Go livestock receivables 4,258 3,900 – – – – – – 4,258 3,900
Debtor interest charges 659 629 962 781 159 152 – – 1,780 1,562
Total external operating revenues 165,841 193,842 619,108 599,745 3,087 5,247 – – 788,036 798,834

Operating EBITDA 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Non-operating gains/(losses) 78 96 31 1,318 23 (3,584) – – 132 (2,170)
Impairment and fair value gains/(losses) 243 (2,286) (1,425) – 375 (901) – – (807) (3,187)
Depreciation and amortisation expense (8,907) (1,682) (16,388) (4,922) (4,169) (2,729) – – (29,464) (9,333)
EBIT 7,120 11,993 16,947 15,692 (9,016) (17,478) – – 15,051 10,207
Net interest and finance costs (1,672) 1,460 (3,062) (357) (298) (7,170) – – (5,032) (6,067)
Profit/(loss) from continuing operations before income tax 5,448 13,453 13,885 15,335 (9,314) (24,648) – – 10,019 4,140
Income tax benefit/(expense) (1,686) (3,323) (3,707) (3,860) 2,507 7,553 – – (2,886) 370
Profit/(loss) from continuing operations, net of income tax 3,762 10,130 10,178 11,475 (6,807) (17,095) – – 7,133 4,510
Profit/(loss) from discontinued operations, net of income tax – – – – – – 707 127,296 707 127,296
Net profit/(loss) after tax 3,762 10,130 10,178 11,475 (6,807) (17,095) 707 127,296 7,840 131,806

Segment assets 184,714 168,661 241,827 154,299 32,872 239,066 – 1,202 459,413 563,228
Assets held for sale – – 40 218 – 2,108 – – 40 2,326
Total segment assets 184,714 168,661 241,867 154,517 32,872 241,174 – 1,202 459,453 565,554
Total segment liabilities (87,481) (81,876) (145,907) (66,373) (69,345) (19,041) (18) – (302,751) (167,290)
Capital expenditure 5,571 2,857 14,807 5,064 8,639 2,736 – 7,251 29,017 17,908
D. Impact of NZ IFRS 16
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Operating EBITDA including NZ IFRS 16 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Less NZ IFRS16 adjustments:
Other operating expenses 7,300 – 12,773 –
1,671 – – – 21,744 –
Operating EBITDA excluding NZ IFRS 16 8,406 15,865 21,956 19,296 (6,916) (10,264) – – 23,446 24,897

NZ IFRS 16 impact on the consolidated statement of financial position
Segment assets 25,111 – 71,230 –
9,041 – – – 105,382 –
Segment liabilities (25,565) – (72,322) – (9,443) – – – (107,330) –
Capital expenditure 4,175 – 7,835 – 5,132 – – – 17,142 –
* The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. The 2020 reporting period includes NZ IFRS 16
adjustments; however, the comparative period excludes such adjustments.
** The comparative period has 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 comparative period has also been restated to reflect the reclassification of the
Standardbred division, which was previously included within Agency, to Discontinued Operations during the period.
PGG WRIGHTSON LIMITED
SEGMENT REPORT CONTINUED
For the year ended / as at 30 June 2020
6 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 7
C. Operating Segment Information
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 72,154 84,171 604,409 577,899 2,816 4,962 – – 679,379 667,032
Commission revenue 88,770 105,142 97 80 112 133 – – 88,979 105,355
Construction contract revenue – – 13,640 20,985 – – – – 13,640 20,985
Interest revenue on Go livestock receivables 4,258 3,900 – – – – – – 4,258 3,900
Debtor interest charges 659 629 962 781 159 152 – – 1,780 1,562
Total external operating revenues 165,841 193,842 619,108 599,745 3,087 5,247 – – 788,036 798,834

Operating EBITDA 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Non-operating gains/(losses) 78 96 31 1,318 23 (3,584) – – 132 (2,170)
Impairment and fair value gains/(losses) 243 (2,286) (1,425) – 375 (901) – – (807) (3,187)
Depreciation and amortisation expense (8,907) (1,682) (16,388) (4,922) (4,169) (2,729) – – (29,464) (9,333)
EBIT 7,120 11,993 16,947 15,692 (9,016) (17,478) – – 15,051 10,207
Net interest and finance costs (1,672) 1,460 (3,062) (357) (298) (7,170) – – (5,032) (6,067)
Profit/(loss) from continuing operations before income tax 5,448 13,453 13,885 15,335 (9,314) (24,648) – – 10,019 4,140
Income tax benefit/(expense) (1,686) (3,323) (3,707) (3,860) 2,507 7,553 – – (2,886) 370
Profit/(loss) from continuing operations, net of income tax 3,762 10,130
10,178 11,475 (6,807) (17,095) – – 7,133 4,510
Profit/(loss) from discontinued operations, net of income tax – – – – – – 707 127,296 707 127,296
Net profit/(loss) after tax 3,762 10,130 10,178 11,475 (6,807) (17,095) 707 127,296 7,840 131,806

Segment assets 184,714 168,661 241,827 154,299 32,872 239,066 – 1,202 459,413 563,228
Assets held for sale – – 40 218 – 2,108 – – 40 2,326
Total segment assets 184,714 168,661 241,867 154,517 32,872 241,174 – 1,202 459,453 565,554
Total segment liabilities (87,481) (81,876) (145,907) (66,373) (69,345) (19,041) (18) – (302,751) (167,290)
Capital expenditure 5,571 2,857 14,807 5,064 8,639 2,736 – 7,251 29,017 17,908
D. Impact of NZ IFRS 16
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Operating EBITDA including NZ IFRS 16 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Less NZ IFRS16 adjustments:
Other operating expenses 7,300 – 12,773 – 1,671 – – – 21,744 –
Operating EBITDA excluding NZ IFRS 16 8,406 15,865 21,956 19,296 (6,916) (10,264) – – 23,446 24,897

NZ IFRS 16 impact on the consolidated statement of financial position
Segment assets 25,111 – 71,230 – 9,041 – – – 105,382 –
Segment liabilities (25,565) – (72,322) – (9,443) – – – (107,330) –
Capital expenditure 4,175 – 7,835 – 5,132 – – – 17,142 –
* The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. The 2020 reporting period includes NZ IFRS 16
adjustments; however, the comparative period excludes such adjustments.
** The comparative period has 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 comparative period has also been restated to reflect the reclassification of the
Standardbred division, which was previously included within Agency, to Discontinued Operations during the period.
PGG WRIGHTSON LIMITED
SEGMENT REPORT CONTINUED
For the year ended / as at 30 June 2020
6 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 7
C. Operating Segment Information
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 72,154 84,171 604,409 577,899 2,816 4,962 – – 679,379 667,032
Commission revenue 88,770 105,142 97 80 112 133 – – 88,979 105,355
Construction contract revenue – – 13,640 20,985 – – – – 13,640 20,985
Interest revenue on Go livestock receivables 4,258 3,900 – – – – – – 4,258 3,900
Debtor interest charges 659 629 962 781 159 152 – – 1,780 1,562
Total external operating revenues 165,841 193,842 619,108 599,745 3,087 5,247 – – 788,036 798,834

Operating EBITDA 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Non-operating gains/(losses) 78 96 31 1,318 23 (3,584) – – 132 (2,170)
Impairment and fair value gains/(losses) 243 (2,286) (1,425) – 375 (901) – – (807) (3,187)
Depreciation and amortisation expense (8,907) (1,682) (16,388) (4,922) (4,169) (2,729) – – (29,464) (9,333)
EBIT 7,120 11,993 16,947 15,692 (9,016) (17,478) – – 15,051 10,207
Net interest and finance costs (1,672) 1,460 (3,062) (357) (298) (7,170) – – (5,032) (6,067)
Profit/(loss) from continuing operations before income tax 5,448 13,453 13,885 15,335 (9,314) (24,648) – – 10,019 4,140
Income tax benefit/(expense) (1,686) (3,323) (3,707) (3,860) 2,507 7,553 – – (2,886) 370
Profit/(loss) from continuing operations, net of income tax 3,762 10,130 10,178 11,475 (6,807) (17,095) – – 7,133 4,510
Profit/(loss) from discontinued operations, net of income tax – – – – – – 707 127,296 707 127,296
Net profit/(loss) after tax 3,762 10,130 10,178 11,475 (6,807) (17,095) 707 127,296 7,840 131,806

Segment assets 184,714 168,661 241,827 154,299 32,872 239,066 – 1,202 459,413 563,228
Assets held for sale – – 40 218 – 2,108 – – 40 2,326
Total segment assets 184,714 168,661 241,867 154,517 32,872 241,174 – 1,202 459,453 565,554
Total segment liabilities (87,481) (81,876) (145,907) (66,373) (69,345) (19,041) (18) – (302,751) (167,290)
Capital expenditure 5,571 2,857 14,807 5,064 8,639 2,736 – 7,251 29,017 17,908
D. Impact of NZ IFRS 16
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Operating EBITDA including NZ IFRS 16 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Less NZ IFRS16 adjustments:
Other operating expenses 7,300 – 12,773 –
1,671 – – – 21,744 –
Operating EBITDA excluding NZ IFRS 16 8,406 15,865 21,956 19,296 (6,916) (10,264) – – 23,446 24,897

NZ IFRS 16 impact on the consolidated statement of financial position
Segment assets 25,111 – 71,230 –
9,041 – – – 105,382 –
Segment liabilities (25,565) – (72,322) – (9,443) – – – (107,330) –
Capital expenditure 4,175 – 7,835 – 5,132 – – – 17,142 –
* The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. The 2020 reporting period includes NZ IFRS 16
adjustments; however, the comparative period excludes such adjustments.
** The comparative period has 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 comparative period has also been restated to reflect the reclassification of the
Standardbred division, which was previously included within Agency, to Discontinued Operations during the period.
PGG WRIGHTSON LIMITED
SEGMENT REPORT CONTINUED
For the year ended / as at 30 June 2020
6 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 7
C. Operating Segment Information
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 72,154 84,171 604,409 577,899 2,816 4,962 – – 679,379 667,032
Commission revenue 88,770 105,142 97 80 112 133 – – 88,979 105,355
Construction contract revenue – – 13,640 20,985 – – – – 13,640 20,985
Interest revenue on Go livestock receivables 4,258 3,900 – – – – – – 4,258 3,900
Debtor interest charges 659 629 962 781 159 152 – – 1,780 1,562
Total external operating revenues 165,841 193,842 619,108 599,745 3,087 5,247 – – 788,036 798,834

Operating EBITDA 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Non-operating gains/(losses) 78 96 31 1,318 23 (3,584) – – 132 (2,170)
Impairment and fair value gains/(losses) 243 (2,286) (1,425) – 375 (901) – – (807) (3,187)
Depreciation and amortisation expense (8,907) (1,682) (16,388) (4,922) (4,169) (2,729) – – (29,464) (9,333)
EBIT 7,120 11,993 16,947 15,692 (9,016) (17,478) – – 15,051 10,207
Net interest and finance costs (1,672) 1,460 (3,062) (357) (298) (7,170) – – (5,032) (6,067)
Profit/(loss) from continuing operations before income tax 5,448 13,453 13,885 15,335 (9,314) (24,648) – – 10,019 4,140
Income tax benefit/(expense) (1,686) (3,323) (3,707) (3,860) 2,507 7,553 – – (2,886) 370
Profit/(loss) from continuing operations, net of income tax 3,762 10,130 10,178 11,475 (6,807)
(17,095) – – 7,133 4,510
Profit/(loss) from discontinued operations, net of income tax – – – – – – 707 127,296 707 127,296
Net profit/(loss) after tax 3,762 10,130 10,178 11,475 (6,807) (17,095) 707 127,296 7,840 131,806

Segment assets 184,714 168,661 241,827 154,299 32,872 239,066 – 1,202 459,413 563,228
Assets held for sale – – 40 218 – 2,108 – – 40 2,326
Total segment assets 184,714 168,661 241,867 154,517 32,872 241,174 – 1,202 459,453 565,554
Total segment liabilities (87,481) (81,876) (145,907) (66,373) (69,345) (19,041) (18) – (302,751) (167,290)
Capital expenditure 5,571 2,857 14,807 5,064 8,639 2,736 – 7,251 29,017 17,908
D. Impact of NZ IFRS 16
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Operating EBITDA including NZ IFRS 16 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Less NZ IFRS16 adjustments:
Other operating expenses 7,300 – 12,773 – 1,671 – – – 21,744 –
Operating EBITDA excluding NZ IFRS 16 8,406 15,865 21,956 19,296 (6,916) (10,264) – – 23,446 24,897

NZ IFRS 16 impact on the consolidated statement of financial position
Segment assets 25,111 – 71,230 – 9,041 – – – 105,382 –
Segment liabilities (25,565) – (72,322) – (9,443) – – – (107,330) –
Capital expenditure 4,175 – 7,835 – 5,132 – – – 17,142 –
* The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. The 2020 reporting period includes NZ IFRS 16
adjustments; however, the comparative period excludes such adjustments.
** The comparative period has 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 comparative period has also been restated to reflect the reclassification of the
Standardbred division, which was previously included within Agency, to Discontinued Operations during the period.
PGG WRIGHTSON LIMITED
SEGMENT REPORT CONTINUED
For the year ended / as at 30 June 2020
6 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 7
C. Operating Segment Information
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Sales revenue 72,154 84,171 604,409 577,899 2,816 4,962 – – 679,379 667,032
Commission revenue 88,770 105,142 97 80 112 133 – – 88,979 105,355
Construction contract revenue – – 13,640 20,985 – – – – 13,640 20,985
Interest revenue on Go livestock receivables 4,258 3,900 – – – – – – 4,258 3,900
Debtor interest charges 659 629 962 781 159 152 – – 1,780 1,562
Total external operating revenues 165,841 193,842 619,108 599,745 3,087 5,247 – – 788,036 798,834

Operating EBITDA 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Non-operating gains/(losses) 78 96 31 1,318 23 (3,584) – – 132 (2,170)
Impairment and fair value gains/(losses) 243 (2,286) (1,425) – 375 (901) – – (807) (3,187)
Depreciation and amortisation expense (8,907) (1,682) (16,388) (4,922) (4,169) (2,729) – – (29,464) (9,333)
EBIT 7,120 11,993 16,947 15,692 (9,016) (17,478) – – 15,051 10,207
Net interest and finance costs (1,672) 1,460 (3,062) (357) (298) (7,170) – – (5,032) (6,067)
Profit/(loss) from continuing operations before income tax 5,448 13,453 13,885 15,335 (9,314) (24,648) – – 10,019 4,140
Income tax benefit/(expense) (1,686) (3,323) (3,707) (3,860) 2,507 7,553 – – (2,886) 370
Profit/(loss) from continuing operations, net of income tax 3,762 10,130 10,178 11,475 (6,807) (17,095) –
– 7,133 4,510
Profit/(loss) from discontinued operations, net of income tax – – – – – – 707 127,296 707 127,296
Net profit/(loss) after tax 3,762 10,130 10,178 11,475 (6,807) (17,095) 707 127,296 7,840 131,806

Segment assets 184,714 168,661 241,827 154,299 32,872 239,066 – 1,202 459,413 563,228
Assets held for sale – – 40 218 – 2,108 – – 40 2,326
Total segment assets 184,714 168,661 241,867 154,517 32,872 241,174 – 1,202 459,453 565,554
Total segment liabilities (87,481) (81,876) (145,907) (66,373) (69,345) (19,041) (18) – (302,751) (167,290)
Capital expenditure 5,571 2,857 14,807 5,064 8,639 2,736 – 7,251 29,017 17,908
D. Impact of NZ IFRS 16
AGENCY RETAIL & WATER OTHER DISCONTINUED OPERATIONS TOTA L
2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019** 2020* 2019**
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Operating EBITDA including NZ IFRS 16 15,706 15,865 34,729 19,296 (5,245) (10,264) – – 45,190 24,897
Less NZ IFRS16 adjustments:
Other operating expenses 7,300 – 12,773 – 1,671 – – – 21,744 –
Operating EBITDA excluding NZ IFRS 16 8,406 15,865 21,956 19,296 (6,916) (10,264) – – 23,446 24,897

NZ IFRS 16 impact on the consolidated statement of financial position
Segment assets 25,111 – 71,230 – 9,041 – – – 105,382 –
Segment liabilities (25,565) – (72,322) – (9,443) – – – (107,330) –
Capital expenditure 4,175 – 7,835 – 5,132 – – – 17,142 –
* The Group adopted NZ IFRS 16 Leases from 1 July 2019 using the modified retrospective approach. The 2020 reporting period includes NZ IFRS 16
adjustments; however, the comparative period excludes such adjustments.
** The comparative period has 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 comparative period has also been restated to reflect the reclassification of the
Standardbred division, which was previously included within Agency, to Discontinued Operations during the period.
PGG WRIGHTSON LIMITED
SEGMENT REPORT CONTINUED
For the year ended / as at 30 June 2020

8 | PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2020
2020 2019
NOTE $000 $000
Cash flows from operating activities
Cash was provided from:
Receipts from customers 809,733 1,216,387
Dividends received 17 2
Interest received 6,622 6,399
816,372 1,222,788
Cash was applied to:
Payments to suppliers and employees (772,069) (1,238,239)
Lump sum contributions to defined benefit plans (ESCT inclusive) – (10,274)
Interest paid (923) (8,322)
Interest paid on lease liabilities (4,185) –
Income tax paid (4,968) (14,954)
(782,145) (1,271,789)
Net cash inflow/(outflow) from operating activities 34,227 (49,001)
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment and assets held for sale 855 624
Cash acquired on purchase of investments – 1,523
Proceeds from sale of investments – 425,851
855 427,998
Cash was applied to:
Purchase of property, plant and equipment (5,419) (11,571)
Purchase of intangibles (6,456) (4,934)
Investment sale costs – (6,799)
Cash disposed on sale of investments – (25,414)
(11,875) (48,718)
Net cash inflow/(outflow) from investing activities (11,020) 379,280
Cash flows from financing activities
Cash was provided from:
Increase in external borrowings and bank overdraft 47,320 –
47,320 –
Cash was applied to:
Share repurchase and cancellation (234,000) (6)
Dividends paid to shareholders (12,564) (15,267)
Dividends paid to minority interests – (1,189)
Repayment of external borrowings and bank overdraft – (114,252)
Repayment of principal portion of lease liabilities (17,586) –
(264,150) (130,714)
Net cash inflow/(outflow) from financing activities (216,830) (130,714)
Net increase/(decrease) in cash held (193,623) 199,565
Opening cash 210,491 10,926
Cash and cash equivalents 9 16,868 210,491
The accompanying notes form an integral part of these consolidated financial statements.

PGG WRIGHTSON LIMITED | 9
PGG WRIGHTSON LIMITED
RECONCILIATION OF PROFIT AFTER TAX
WITH NET CASH FLOW FROM OPERATING ACTIVITIES
For the year ended 30 June 2020
2020 2019
$000 $000
Net profit after tax 7,840 131,806
Add/(deduct) non-cash/non-operating items:
Depreciation and amortisation 29,503 13,891
Impairment and fair value losses 807 4,079
Bad debts written off (net) 489 2,519
Loss/(profit) on sale of assets/investments (1,259) (134,218)
Loss/(profit) from equity accounted investees (8) 6,412
Foreign exchange loss/(gain) 135 (5,879)
Deferred tax expense/(benefit) 788 2,111
Defined benefit expense/(gain) 13 (817)
Pension contributions not expensed through profit or loss – (10,274)
Other non-cash/non-operating items (302) (2,357)
38,006 7,273
Add/(deduct) movement in working capital items:
Change in working capital due to sale/purchase of businesses – (199,376)
Change in inventories (1,110) 176,575
Change in accounts receivable and prepayments 22,825 85,936
Change in trade creditors, provisions and accruals (22,222) (112,759)
Change in income tax payable/receivable (3,661) (4,997)
Change in other current assets/liabilities 389 (1,653)
(3,779) (56,274)
Net cash flow from operating activities 34,227 (49,001)
Cash Flows Accounting Policies
In the statement of cash flows, cash receipts and payments on behalf of customers which reflect the activities of the customer rather than
those of the Group are reported on a net basis.

10 | PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2020
2020 2019
NOTE $000 $000
ASSETS
Current
Cash and cash equivalents 9 16,868 210,491
Short-term derivative assets 10 707 614
Trade and other receivables 11 122,946 145,881
Go livestock receivables 12 48,111 47,754
Income tax receivable 2,369 –
Inventories 13 87,111 85,969
Intangible assets 14 2,056 2,222
Assets classified as held for sale 40 2,326
Other current assets 4 35
Total current assets 280,212 495,292
Non-current
Long-term derivative assets 10 235 387
Deferred tax asset 7 10,292 9,976
Investments in equity accounted investees 79 71
Other investments 471 470
Intangible assets 14 17,180 14,644
Right-of-use assets 15 104,625 –
Property, plant and equipment 16 46,330 44,702
Other non-current assets 29 12
Total non-current assets 179,241 70,262
Total assets
459,453 565,554
LIABILITIES
Current
Debt due within one year 9 30,000 2,680
Short-term derivative liabilities 10 562 280
Accounts payable and accruals 17 132,601 155,903
Short-term lease liabilities 15 16,506 –
Income tax payable – 851
Total current liabilities 179,669 159,714
Non-current
Long-term debt 9 20,000 –
Long-term derivative liabilities 10 45 62
Long-term lease liabilities 15 90,398 –
Long-term provisions 17 2,802 1,631
Defined benefit liability 18 9,838 5,883
Total non-current liabilities 123,083 7,576
Total liabilities
302,751 167,290
EQUITY
Share capital 28 372,318 606,318
Reserves 28 7,586 10,424
Retained earnings 28 (223,202) (218,478)
Total equity
156,702 398,264
Total liabilities and equity
459,453 565,554
The accompanying notes form an integral part of these consolidated financial statements.

ANNUAL REPORT 2020 | 11
ADDITIONAL
FINANCIAL
DISCLOSURES
INCLUDING NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2020
$

12 | PGG WRIGHTSON LIMITED
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
1 OPERATING REVENUE
2020 2019
$000 $000
Revenue from contracts with customers
Sales revenue 679,379 667,032
Commission revenue 88,979 105,355
Construction contract revenue 13,640 20,985
Other operating revenue
Interest revenue on Go livestock receivables 4,258 3,900
Debtor interest charges 1,780 1,562
788,036 798,834
Income Recognition Accounting Policies
The Group adopted NZ IFRS 15 Revenue from Contracts with Customers from 1 July 2018. Revenue is recognised to the extent that it is
probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognised.
Sales revenue
Sales revenue comprises the sale value of transactions where the Group acts as a principal; for example, retail store sales, and sales of wool
and velvet products. Revenue is measured at the transaction price when control is transferred to which an entity expects to be entitled
in exchange for transferring goods or services to a customer. For sale of goods, the transfer of control occurs when the risks and rewards,
physical possession and the legal title of the goods have been transferred and accepted by the customer and the customer has a present
obligation to make the payment.
Our customers may be entitled to discounts/rebates for certain items and/or volumes purchased, under varying categories. These
discounts/rebates are defined as variable consideration and are included in the transaction price as a component of operating revenue
upon the completion of our performance obligations. These discounts/rebates are contractual in nature and known at balance date,
therefore no assumptions or estimates are required.
The Group offers a range of payment terms, and in some cases can be up to 12 months. The Group does not recognise a financing element
for contracts with terms of 12 months or less.
When part of the Group’s performance obligation in selling its products is to arrange freight and/or insurance, the Group is considered to be
acting as an agent and these costs are recognised net against freight recoveries.
The Group offers warranties and returns as required by New Zealand law and/or per the terms and conditions of the contracts with
customers. The Group recognises the obligations under these warranties as a provision.
Commission revenue
Commission revenue comprises commission for transactions where the Group acts as an agent. For agency commissions, the Group
does not take inventory risk or title for inventories, or for the Group’s Livestock and Real Estate businesses, biological assets and properties
respectively. The Group generates commissions from acting as an agent for organising the sale of livestock or real estate, and from the
successful referral of clients to unrelated lending and insurance partners.
Revenue is recognised at a point in time upon completion of service.
Construction contract revenue
Construction services are provided to customers in the Water business to construct pivots and irrigation systems. Most contracts contain a
single performance obligation. The size and duration of the contracts can vary significantly, and customers are invoiced as work progresses.
Most contracts are completed within 12 months; therefore, the unearned revenue on these contracts has not been disclosed.
The Group accounts for revenue over time, which best depicts the pattern of transfer of the construction services to the customer. The
Group uses an input method to recognise revenue based on a percentage of cost completed. This method involves judgements relating to
a contract’s expected margin and its stage of completion.
Interest and similar income and expense
The Group recognises the fixed fees charged to customers under its Go programme as interest revenue. Refer to Note 12 Go Livestock
Receivables for further explanation regarding this programme. This interest revenue is recognised over the term of the Go contracts.
The Group also recognises interest revenue and establishment fees on an accruals basis when the services are rendered using the
effective interest method. Refer to the accounting policies under Note 5 Net Interest and Finance Costs for further explanation on
the effective interest method.

PGG WRIGHTSON LIMITED | 13
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
2 COST OF SALES
2020 2019
NOTE $000 $000
Depreciation and amortisation 181 182
Employee benefits including commissions 23,953 30,754
Inventories, finished goods, work in progress, raw materials and consumables 13 534,366 534,811
Other 25,355 13,533
583,855 579,280
3 OTHER OPERATING EXPENSES
2020 2019
$000 $000
Audit of annual consolidated financial statements of the Company by KPMG 3(A) 190 290
Regulatory and other assurance services provided by KPMG 11 14
Directors’ fees 611 718
Donations 1 1
Increase/(decrease) in provision for impaired debtors 343 1,305
Net bad debts written off/(recovered) 147 298
IT & telecommunication costs 11,641 9,721
Marketing 3,818 4,037
Motor vehicle costs 5,804 6,575
Travel costs 3,044 4,105
Rental and operating lease costs 279 21,869
Occupancy costs (excluding rental and operating lease) 5,542 5,022
Other staff costs 6,558 7,535
Other expenses 7,338 10,231
45,327 71,721
A. Audit fees
In FY19, the Group paid additional fees of $0.34 million to KPMG which were disclosed separately within the results of discontinued operations.
These additional fees were for the audit of PGG Wrightson Seeds Holdings Limited’s balance sheets as part of the sale of the Seed & Grain segment,
and for the audit of annual consolidated financial statements of the subsidiaries and equity accounted investees within the Seed & Grain segment.
4 IMPAIRMENT AND FAIR VALUE GAINS/(LOSSES)
2020 2019
$000 $000
Net impairment reversal/(impairment) – Property, plant and equipment 4(A) 253 (2,260)
Net impairment reversal/(impairment) – Right-of-use assets 4(B) (852) –
Fair value gains/(losses) – Assets held for sale 16(A) (198) (181)
Impairment – Investment in equity accounted investee – (720)
Fair value gains/(losses) – Biological assets (10) (26)
(807) (3,187)

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
4 IMPAIRMENT AND FAIR VALUE GAINS/(LOSSES) (CONTINUED)
A. Saleyards
During the year, the Group reviewed the status of each saleyard as strategic or non-strategic, and tested them for impairment. The Group
recognised impairments of $0.41 million on two saleyards which management no longer considers strategic. The Group also reversed $0.66 million
of previously recognised impairment losses on five saleyards based on updated valuations. The net impairment reversal recognised in the profit or
loss is $0.25 million.
B. Right-of-use assets
The Group reviewed its right-of-use assets for indicators of impairment and has recognised an impairment of $2.25 million in respect of three
leased properties. Most of the impairment relates to the Water business following the Group’s decision to restructure that business. The Group also
recorded an impairment reversal of $1.40 million on a leased property previously treated as an onerous lease, as there is no longer an indication
that site is impaired. The net impairment loss recognised in the profit or loss is $0.85 million.
Impairment Accounting Policies
The carrying value of the Group’s assets are reviewed at each reporting date to determine whether there is any objective evidence of
impairment. An impairment loss is recognised whenever the carrying amount exceeds its recoverable amount. Impairment losses directly
reduce the carrying value of assets and are recognised in profit or loss unless the asset is carried at a revalued amount in accordance with
another standard.
Non-financial assets
The carrying amounts of the Group’s non-financial assets (other than biological assets, inventories and deferred tax assets) are reviewed at
each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amount
of the asset or the cash-generating unit (CGU) to which the asset relates is estimated. A CGU is the smallest identifiable asset group that
generates cash flows that are largely independent from other assets and groups.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the
estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are
recognised in profit or loss.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
14 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
5 NET INTEREST AND FINANCE COSTS
2020 2019
$000 $000
Interest income 579 771
Interest funding expense
Bank interest on loans and overdrafts (923) (4,928)
Other interest expense – (312)
Bank facility fees (683) (1,885)
(1,606) (7,125)
Net interest on interest rate derivatives – (761)
Fair value gain/(loss) on interest rate derivatives – 535
Effective interest on defined benefit pension ESCT payments – (299)
(1,606) (7,650)
Net interest income/(expense) excluding interest on lease liabilities (1,027) (6,879)
Interest on lease liabilities (4,183) –
Foreign exchange income/(expense)
Net gain/(loss) on foreign denominated items 502 (423)
Fair value gain/(loss) on foreign exchange derivatives (324) 1,235
178 812
Net interest and finance income/(expense) (5,032) (6,067)
Interest and Finance Income/Expense Accounting Policies
Interest and similar income and expense
For all financial instruments measured at amortised cost, interest income or expense is recorded at the effective interest rate, which is the
rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter
period, where appropriate, to the net carrying amount of the financial asset or financial liability. The calculation takes into account all
contractual terms of the financial instrument (for example, prepayment options) and includes any fees or incremental costs that are directly
attributable to the instrument and are an integral part of the effective interest rate, but not future credit losses. Once the recorded value of a
financial asset or a group of similar financial assets has been reduced due to an impairment loss, interest income continues to be recognised
using the original effective interest rate applied to the new carrying amount.
Fair value change on foreign exchange derivatives
The Group undertakes transactions denominated in foreign currencies and exposure to movements in foreign currency arises from these
activities. The Group uses forward, spot foreign exchange contracts and foreign exchange options to manage these exposures. These
derivatives are recorded at their fair value with mark-to-market fair value movements flowing through fair value change on foreign
exchange derivatives in the profit or loss. A portion of the underlying hedged future sale or purchase transactions have not yet been
recognised by the Group. For this portion, no corresponding offsetting net gain/(loss) on foreign denominated items has been recognised.
PGG WRIGHTSON LIMITED | 15

Refer to
Accounting
Policies
– page 18.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
6 GOVERNMENT GRANT
COVID-19 wage subsidy
On 11 March 2020, the World Health Organisation declared the outbreak of Coronavirus ("COVID-19") a pandemic. The Group's financial
performance for 2020 has been significantly impacted by COVID-19. Whilst the Group's retail stores and warehouse supplies facilities continued
operating as an "essential service" during all of New Zealand's alert levels, the Group's Water, Wool, Real Estate and Livestock saleyard businesses
were closed at alert level 4 and only reopened under alert level 3 following strict protocols.
The Group received $4.11 million under the Government’s COVID-19 wage subsidy scheme which is aimed at supporting employers affected by
the COVID-19 lockdown to continue to employ staff. $3.15 million of this subsidy has been recognised in the profit or loss within the Employee
Expenses line, with the remaining $0.96 million being recognised as deferred income on the balance sheet as at balance date. There are no
unfulfilled conditions or other contingencies attaching to these grants.
The Group did not benefit directly from any other forms of government assistance during the year.
Government Grant Accounting Policies
Government grants are recognised when there is reasonable assurance that the entity will comply with the conditions attaching to them
and the grants will be received. Government grants relating to costs are recognised in profit or loss on a systematic basis over the periods in
which the entity recognises as expenses the related costs for which the grants are intended to compensate.
7 INCOME TAXES
A. Income tax recognised in profit or loss
2020 2019
$000 $000
Current tax benefit/(expense)
Current year (2,201) 1,982
Adjustments for prior years 103 612
(2,098) 2,594
Deferred tax benefit/(expense)
Origination and reversal of temporary differences (973) (2,559)
Adjustments for prior years 185 335
(788) (2,224)
Income tax benefit/(expense) (2,886) 370
Reconciliation
Profit from continuing operations before income tax 10,019 4,140
Income tax using the Company’s domestic tax rate (28%) (2,805) (1,159)
Non-deductible expenditure (792) (625)
Tax exempt income 481 260
Defined benefit scheme contributions – 777
Tax credits 109 170
Over/(under) provided in prior years 288 947
Other (167) –
Income tax benefit/(expense) (2,886) 370
16 | PGG WRIGHTSON LIMITED

Refer to
Accounting
Policies
– page 18.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
7 INCOME TAXES CONTINUED
B. Income tax recognised directly in equity
2020 2019
$000 $000
Deferred tax on movement of actuarial gains/losses on employee benefit plans 1,104 703
Deferred tax on transition adjustment upon adoption of NZ IFRS 9 – 126
Income tax benefit/(expense) recognised directly in equity 1,104 829
C. Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
ASSETS ASSETS LIABILITIES LIABILITIES NET NET
2020 2019 2020 2019 2020 2019
$000 $000 $000 $000 $000 $000
Property, plant and equipment 616 818 – – 616 818
Intangible assets – – (1,549) (759) (1,549) (759)
Right-of-use assets – – (29,350) – (29,350) –
Lease liabilities 29,987 – – – 29,987 –
Employee benefits 6,361 6,294 – – 6,361 6,294
Provisions 4,227 3,623 – – 4,227 3,623
Deferred tax asset/(liability) 41,191 10,735 (30,899) (759) 10,292 9,976
RECOGNISED RECOGNISED IN RECOGNISED IN
IN PROFIT IN PROFIT OTHER RECOGNISED ACQUISITION /
BALANCE OR LOSS OR LOSS COMPREHENSIVE IN RETAINED SALE OF BALANCE
1 JUL 2019 (CONTINUING) (DISCONTINUED) INCOME EARNINGS SUBSIDIARIES 30 JUN 2020
$000 $000 $000 $000 $000 $000 $000
Property, plant 818 (202) – – – – 616
and equipment
Intangible assets (759) (790) – – – – (1,549)
Right-of-use assets – (29,350) – – – – (29,350)
Lease liabilities – 29,987 – – – – 29,987
Employee benefits 6,294 (1,037) – 1,104 – – 6,361
Provisions 3,623 604 – – – – 4,227
9,976 (788) – 1,104 – – 10,292
RECOGNISED RECOGNISED IN RECOGNISED IN
IN PROFIT IN PROFIT OTHER RECOGNISED ACQUISITION /
BALANCE OR LOSS OR LOSS COMPREHENSIVE IN RETAINED SALE OF BALANCE
1 JUL 2018 (CONTINUING) (DISCONTINUED) INCOME EARNINGS SUBSIDIARIES 30 JUN 2019
$000 $000 $000 $000 $000 $000 $000
Property, plant (162) 1,175 (983) – – 788 818
and equipment
Intangible assets (97) (524) 2,600 – – (2,738) (759)
Employee benefits 10,689 (3,973) (329) 703 – (796) 6,294
Provisions 4,878 1,098 (2,582) – 126 103 3,623
Other items 951 – – – – (951) –
16,259 (2,224) (1,294) 703 126 (3,594) 9,976
PGG WRIGHTSON LIMITED | 17

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
7 INCOME TAXES CONTINUED
D. Unrecognised tax losses and temporary differences
At 30 June 2020, the Group has no unrecognised deferred tax assets relating to tax losses and temporary differences (2019: Nil).
E. Imputation credits
The Group has $8.8 million imputation credits as at 30 June 2020 (2019: $7.1 million).
Income Tax Accounting Policies
Income tax expense comprises current and deferred taxation and is recognised in profit or loss except to the extent that it relates to items
recognised directly in other comprehensive income or equity, in which case it is recognised directly in other comprehensive income or
equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, calculated using tax rates enacted or substantively enacted at
the reporting date. Current tax includes any adjustment to tax payable with respect to previous periods. Current tax assets and liabilities are
offset only if certain criteria are met.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the
temporary differences when they reverse, based on the laws that have been enacted or substantially enacted at the reporting date.
Deferred tax is not recognised for:
– taxable temporary differences arising on the initial recognition of goodwill;
– temporary differences relating to subsidiaries, associates and jointly controlled entities to the extent that the Group is able to control the
timing of the reversal of the temporary differences and it is probable they will not reverse in the foreseeable future;
– temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither accounting nor taxable profit or loss.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary
differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be recognised.
Deferred tax assets and liabilities are offset only if certain criteria are met.
18 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
8 EARNINGS PER SHARE AND NET TANGIBLE ASSETS
A. Earnings per share (EPS)
The calculation of EPS, as disclosed in the consolidated statement of profit or loss, is based on the following profit figures and number of
authorised shares.
WEIGHTED AVERAGE
ISSUED ORDINARY SHARES NUMBER OF ORDINARY SHARES
2020 2019 2020 2019
000 000 000 000
Issued ordinary shares at 1 July 754,839 754,849 754,839 754,849
Ordinary shares issued due to 2:1 share split 754,839 – 663,845 –
Ordinary shares repurchased and cancelled (754,839) (10) (663,845) (5)
Ordinary shares reduced due to 1:10 share consolidation (679,355) – (597,460) –
Balance at 30 June 75,484 754,839 157,379 754,844
There are no dilutive shares or options (2019: Nil).
2020 2019
$000 $000
Profit (net of tax) attributable to Shareholders of the Company 7,840 131,123
Profit from continuing operations (net of tax) attributable to Shareholders of the Company 7,133 4,510
B. Net tangible assets (NTA)
The calculation of NTA per share is based on the following NTA figure and the Company’s issued ordinary shares at the end of the period.
2020 2019
$000 $000
Total assets 459,453 565,554
Total liabilities (302,751) (167,290)
less intangible assets (19,236) (16,866)
less deferred tax (10,292) (9,976)
Net tangible assets 127,174 371,422
2020 2019
$ $
Basic & diluted EPS on issued ordinary shares at the end of the period 0.104 0.174
Basic & diluted EPS on issued ordinary shares at the end of the period – continuing operations 0.094 0.006
Basic & diluted EPS on a weighted average basis 0.050 0.174
Basic & diluted EPS on a weighted average basis – continuing operations 0.045 0.006
NTA per issued ordinary shares at the end of period 1.685 0.492
Earnings Per Share Accounting Policies
The Group presents basic and diluted EPS data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to
shareholders by the weighted average number of shares outstanding during the period. Diluted EPS is determined by adjusting the profit or
loss attributable to shareholders and the number of shares outstanding to include the effects of all potential dilutive shares.
PGG WRIGHTSON LIMITED | 19

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
9 CASH AND FINANCING FACILITIES
2020 2019
$000 $000
Cash and cash equivalents 16,868 210,491
Current financing facilities (30,000) (2,680)
Term financing facilities (20,000) –
Net interest-bearing (debt)/cash and cash equivalents (33,132) 207,811
Go livestock receivables 12 48,111 47,754
Net interest-bearing (debt) / cash and cash equivalents
after adjusting for Go livestock receivables 14,979 255,565
Financing 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
– Working capital facilities of up to $70.00 million maturing on 1 August 2021 (subject to an annual Clean Down)
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,
capital expenditure and asset disposals.
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 $6.58 million as at 30 June 2020 (2019:
$9.58 million).
– Overdraft facilities of $3.00 million
– Guarantee, letters of credit and trade finance facility of $3.58 million
20 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
10 DERIVATIVE FINANCIAL INSTRUMENTS
The Group uses forward foreign exchange contracts, spot foreign exchange contracts and foreign exchange options to manage its exposure to
foreign currency fluctuations. The Group may also use interest rate swaps and options to hedge its exposure to changes in the market rates of
variable and fixed interest rates. In accordance with the Group’s treasury policy, the Group does not hold these derivative instruments for trading
purposes. The Group does not currently apply hedge accounting.
Where the Group enters into derivative transactions, these agreements do not meet the criteria for offsetting in the consolidated statement of
financial position. Amounts in the consolidated statement of financial position are the gross amounts.
2020 2019
$000 $000
Derivative assets held for risk management
Current 707 614
Non-current 235 387
942 1,001
Derivative liabilities held for risk management
Current (562) (280)
Non-current (45) (62)
(607) (342)
Net derivative asset/(liability) held for risk management 335 659
Derivative Financial Instruments Accounting Policies
Derivative financial instruments are recognised initially at fair value and transaction costs are expensed immediately. Subsequent to initial
recognition, derivative financial instruments are stated at fair value, and changes therein are generally recognised in profit or loss.
The fair value of forward exchange contracts is based on broker quotes, if available. If broker quotes are not available, then fair value is
estimated by discounting the difference between the contractual forward price and the current forward price at the reporting date for the
residual maturity of the contract using a risk-free interest rate based on government bonds.
PGG WRIGHTSON LIMITED | 21

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
11 TRADE AND OTHER RECEIVABLES
2020 2019
$000 $000
Accounts receivable due from unrelated parties 108,547 136,798
Accounts receivable due from related parties 49 40
Gross accounts receivable 108,596 136,838
less Provision for impaired debtors (4,025) (4,635)
Net accounts receivable 104,571 132,203
Other receivables 16,410 11,373
Prepayments 1,965 2,305
Trade and other receivables 122,946 145,881
Analysis of movements in provision for impaired debtors
Balance at beginning of year (4,635) (6,887)
Movement in provision 610 (2,025)
Increase in provision upon adoption of NZ IFRS 9 – (450)
Increase in provision due to acquisition of subsidiary – (4,956)
Reduction in provision due to sale of Seed & Grain – 9,683
Balance at end of year
(4,025) (4,635)
The aging status of the accounts receivable at the reporting date is as follows:

TOTA L TOTA L
DEBTORS PROVISION DEBTORS PROVISION
2020 2020 2019 2019
$000 $000 $000 $000
Not past due 99,860 (705) 125,625 (1,403)
Past due 1– 30 days 4,297 (311) 6,474 (41)
Past due 31 – 60 days 930 (204) 978 (20)
Past due 61 – 90 days 314 (157) 1,523 (987)
Past due 90 plus days 3,195 (2,648) 2,238 (2,184)
108,596 (4,025) 136,838 (4,635)
Trade and Other Receivables Accounting Policies
Recognition and measurement
A trade receivable without a significant financing component is initially measured at the transaction price and classified as financial assets
measured at amortised cost. Accounts receivables include accrued interest.
Impairment
Specific provisions are maintained to cover identified impaired debtors. Judgement is required in determining the impairment provision.
The Group recognises loss allowances on expected credit loss (ECL) on trade receivables. The Group measures loss allowances for trade
receivables at an amount equal to lifetime ECL. The ECL is a probability-weighted estimate of credit losses (i.e. present value of all cash
shortfalls). The ECL is discounted at the effective interest rate of the financial asset, although receivables with short duration are not
discounted.
When estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost and
effort. This includes both qualitative and quantitative information and analysis, based on the Group’s historical experience and informed
credit assessment, that includes forward-looking information. The Group assumes that the credit risk has increased significantly if it is more
than 60 days past due. The Group considers a financial asset to be in default when when the debtor is unlikely to pay its credit obligations to
the Group in full, without recourse by the Group to actions such as realising security (if any is held).
On a monthly basis, the Group via its Credit Committee assesses whether trade receivables are credit-impaired. All individual instruments
that are considered significant are subject to this approach. A financial asset is credit-impaired when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired
includes observable data such as significant financial difficulty of the debtor.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. The gross
carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its
entirety or a portion thereof.
22 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
12 GO LIVESTOCK RECEIVABLES
The Group holds receivables in respect of its Go range of livestock products. The Go range allows farmers to defer payment for the purchase
of livestock. The counterparty to the Go product is fully exposed to the risks and rewards of ownership. To mitigate credit risk, the Group
retains title to the livestock until sale. Fee income received in respect of the Go range of livestock receivables is recognised by the Group
as interest income over the respective contract period and is included within operating revenue of the Agency operating segment
(refer to Note 1 Operating Revenue).
2020 2019
$000 $000
Go livestock receivables – less than one year 48,111 47,754
Go livestock receivables – greater than one year – –
less Provision for impairment – Go livestock receivables – –
48,111 47,754
The status of the Go livestock receivables at the reporting date is as follows:
Not past due 48,111 47,754
Past due – –
48,111 47,754
Included within Trade and Other Receivables is accrued interest of $1.69 million (2019: $1.64 million).
13 INVENTORY
2020 2019
$000 $000
Merchandise 68,639 67,892
Work in progress & finished goods 21,732 20,686
less provision for inventory write down (3,260) (2,609)
87,111 85,969
During the year ended 30 June 2020, inventories of $534.37 million (2019: $534.81 million) are included in cost of sales in the profit or loss (refer
to Note 2 Cost of Sales). Included within this amount are write-down of inventories of $1.93 million (2019: $1.75 million) to net realisable value and
reversals of write-down of $0.09 million (2019: $0.45 million).
Inventories Accounting Policies
Raw materials and finished goods are stated at the lower of cost or net realisable value. Cost is determined on a weighted average cost
basis. In the case of manufactured goods, cost includes direct materials, labour and production overheads. Judgement is required in
determining the net realisable value for inventories.
PGG WRIGHTSON LIMITED | 23

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
14 INTANGIBLE ASSETS
TRADEMARKS,
SOFTWARE PATENTS & RIGHTS GOODWILL TOTAL
$000 $000 $000 $000
Cost
Balance at 1 July 2018 29,015 3,194 – 32,209
Additions 7,442 131 – 7,573
Added as part of a business combination/amalgamation – – 13,741 13,741
Disposals and reclassifications (2,531) – – (2,531)
Disposed as part of a business disposal (4,983) (1,479) (13,741) (20,203)
Effect of movement in exchange rates (67) (28) – (95)
Balance at 30 June 2019 28,876 1,818 – 30,694
Balance at 1 July 2019 28,876 1,818 – 30,694
Additions 9,914 98 – 10,012
Disposals and reclassifications (3,573) – – (3,573)
Balance at 30 June 2020 35,217 1,916 – 37,133
Amortisation and impairment losses
Balance at 1 July 2018 14,768 1,783 – 16,551
Amortisation for the year 4,978 23 – 5,001
Impairment – – 1,190 1,190
Disposals and reclassifications (2,647) – – (2,647)
Disposed as part of a business disposal (4,562) (493) (1,190) (6,245)
Effect of movement in exchange rates (8) (14) – (22)
Balance at 30 June 2019 12,529 1,299 – 13,828
Balance at 1 July 2019 12,529 1,299 – 13,828
Amortisation for the year 3,994 92 – 4,086
Disposals and reclassifications (17) – – (17)
Balance at 30 June 2020 16,506 1,391 – 17,897
Carrying amounts
At 1 July 2018 14,247 1,411 – 15,658
At 30 June 2019 16,347 519 – 16,866
At 30 June 2020 18,711 525 – 19,236
Intangible Assets Accounting Policies
Software
Software is a finite life intangible and is recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a
straight line basis over an estimated useful life between 1 and 15 years. The estimated useful life and amortisation method is reviewed at the
end of each annual reporting period and adjusted if appropriate.
Rights
Manufacturing and production rights are finite life intangibles and are recorded at cost less accumulated amortisation and impairment.
Amortisation is charged on a straight line basis over an estimated useful life between 2 and 10 years. The estimated useful life and
amortisation method is reviewed at the end of each annual reporting period and adjusted if appropriate.
Impairment
The carrying amounts of the Group’s intangible assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, then the recoverable amount of the asset is estimated. For intangible assets that have indefinite
lives, the recoverable amount is estimated at each reporting date. An impairment loss is recognised in the profit or loss if the carrying
amount of an asset exceeds the recoverable amount. Refer to the accounting policy under Note 4 Impairment and Fair Value Gains/(Losses)
for further explanation.
24 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
15 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
The Group leases many assets, including:
– leases of land and buildings from 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 vehicles 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. There was no impact on retained earnings 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 various practical expedients including:
– The 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.
– The Group elects to measure right-of-use assets at an amount equal to the lease liabilities upon transition.
– The Group applied a single discount rate to a portfolio of leases with reasonably similar characteristics.
– The Group excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application.
– The Group used hindsight in determining the lease term.
– The 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.
In the process of adopting the new standard, a number of judgements and estimates have been made. These include:
– incremental borrowing rate at the time of adoption
– lease terms, 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.
2020
$000
Amounts in consolidated statement of profit or loss
Depreciation on right-of-use assets – continuing operations (20,265)
Interest on lease liabilities (4,183)
Short-term or low-value lease expenses (333)
Variable lease payments not included in the measurement of lease liabilities (168)
Income from sub-leasing right-of-use assets 1,149
Amounts in consolidated statement of cash flows
Cash outflow for interest on lease liabilities (operating activities) (4,185)
Cash outflow for principal portion of lease liabilities (financing activities) (17,586)
Total cash outflow for leases (21,771)
PGG WRIGHTSON LIMITED | 25

Refer to
Accounting
Policies
– page 27.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
15 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONTINUED)
Amounts in consolidated 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
Additions 11,498 5,644 17,142
Modifications and terminations (881) 342 (539)
Depreciation charge for the period (13,623) (6,669) (20,292)
Net Impairment (852) – (852)
Balance at 30 June 2020 93,226 11,399 104,625
2020
$000
Lease liabilities
Current lease liabilities 16,506
Non-current lease liabilities 90,398
Total recognised lease liabilities 106,904
Maturity analysis - minimum contractual undiscounted cash flows
Less than one year 18,334
One to five years 39,174
More than five years 12,731
Total undiscounted lease liabilities at 30 June 2020 70,239
Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period.
Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are
exercisable only by the Group and not by the lessors. The Group assesses at lease commencement date whether it is reasonably certain to exercise
the extension options. The Group reassesses whether it is reasonable certain to exercise the options if there is significant event or significant
changes in circumstances within its control. The Group has estimated that the potential future lease payments, should it exercise all the extension
options, would result in an increase in lease liability of $65.0 million.
2020
$000
Reconciliation of recognised lease liabilities to operating lease commitments
Operating lease commitments at 30 June 2019 as disclosed in the Group’s consolidated financial statements 84,403
Operating lease commitments at 30 June 2019 discounted at the incremental borrowing rate at 1 July 2019 74,905
Value of operating leases not commenced as at 1 July 2019 (9,560)
Recognition exemption for short-term leases (402)
Value of additional leases and future lease renewal options reasonably certain to be exercised 41,683
Lease liabilities recognised on initial adoption date of 1 July 2019 106,626
26 | PGG WRIGHTSON LIMITED

Refer to
Accounting
Policies
– page 29.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
15 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONTINUED)
Lease Accounting Policies
The Group assesses at the inception of a contract as to whether the contract is, or contains, a lease as defined in NZ IFRS 16 Leases.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
Right-of-use assets
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 periodically reduced by impairment losses (if any) and 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, or recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
16 PROPERTY, PLANT AND EQUIPMENT
PLANT AND CAPITAL WORKS
LAND BUILDINGS EQUIPMENT PROJECT* TOTAL
NOTE $000 $000 $000 $000 $000
Cost
Balance at 1 July 2018 20,987 47,441 128,508 3,822 200,758
Additions 6 700 10,812 54 11,572
Added as part of a business combination 1,306 6,584 3,019 – 10,909
Disposals and transfers to other asset classes (71) (164) (2,142) – (2,377)
Disposed as part of a business disposal (8,741) (40,042) (89,019) (1,072) (138,874)
Effect of movements in exchange rates (304) (274) (1,500) – (2,078)
Balance at 30 June 2019 13,183 14,245 49,678 2,804 79,910
Balance at 1 July 2019 13,183 14,245 49,678 2,804 79,910
Additions – 119 5,362 (62) 5,419
Reclassification from/(to) assets held for sale 16(A) 322 1,706 – – 2,028
Disposals and transfers (3) (727) (3,045) – (3,775)
Balance at 30 June 2020 13,502 15,343 51,995 2,742 83,582
PGG WRIGHTSON LIMITED | 27

Refer to
Accounting
Policies
– page 29.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
16 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
PLANT AND CAPITAL WORKS
LAND BUILDINGS EQUIPMENT PROJECT* TOTAL
NOTE $000 $000 $000 $000 $000
Depreciation and impairment losses
Balance at 1 July 2018 – 7,997 68,541 – 76,538
Depreciation for the year – 848 6,800 – 7,648
Depreciation recovered to COGS – – 182 – 182
Added as part of a business combination – 526 1,237 – 1,763
Disposals and transfers to other asset classes – (64) (1,766) – (1,830)
Disposed as part of a business disposal – (5,119) (44,686) – (49,805)
Impairment – 2,256 – – 2,256
Effect of movements in exchange rates – (104) (1,440) – (1,544)
Balance at 30 June 2019 – 6,340 28,868 – 35,208
Balance at 1 July 2019 – 6,340 28,868 – 35,208
Depreciation for the year – 285 4,828 – 5,113
Depreciation recovered to COGS – – 181 – 181
Reclassification from/(to) assets held for sale 16(A) – (60) – – (60)
Disposals and transfers – (702) (2,368) – (3,070)
Impairment / (impairment reversal) – (254) 133 – (121)
Balance at 30 June 2020 – 5,610 31,642 – 37,252
Carrying amounts
At 1 July 2018 20,987 39,444 59,967 3,822 124,220
At 30 June 2019 13,183 7,905 20,810 2,804 44,702
At 30 June 2020 13,502 9,734 20,353 2,742 46,330
* Capital works projects are recorded net of transfers to other asset classes.
Capital gains on the sale of property, plant and equipment of $0.15 million were recognised in non-operating items in the current period
(2019: $0.20 million loss).
A. Reclassification from/(to) assets held for sale
During the year, the Group reclassified four properties which were previously classified as assets held for sale back to property, plant and
equipment on the basis the likelihood of their sale in the next 12 months is low. These properties are remeasured at their carrying amount
(adjusted for any depreciation that would have been recognised had the asset not previously been classified as held for sale) of $2.1 million.
The loss on the remeasurement of the properties of $0.2 million was recognised in the profit or loss.
28 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
16 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Property, Plant & Equipment Accounting Policies
Recognition and measurement
Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that
is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any
other costs directly attributable to bringing the asset to a working condition for its intended use, and the cost of dismantling and removing
the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment
is capitalised as part of that equipment. Borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of that asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.
Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to
the Group and the cost can be measured reliably. The costs of day-to-day servicing of property, plant and equipment is recognised in profit
or loss as incurred.
Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each item of property, buildings, plant
and equipment. Leasehold assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The
estimated useful lives for the current and comparative periods are between 2 and 40 years for plant and equipment and 50 years for
buildings. Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted if appropriate.
Impairment
The carrying amounts of the Group’s property, plant & equipment assets are reviewed at each reporting date to determine whether there
is any indication of impairment. If any such indication exists, then the recoverable amount of the asset is estimated. An impairment loss is
recognised in the profit or loss if the carrying amount of an asset exceeds the recoverable amount. Refer the accounting policy under
Note 4 Impairment and Fair Value Gains/(Losses) for further explanation.
17 TRADE AND OTHER PAYABLES
2020 2019
NOTE $000 $000
Trade creditors 81,835 96,802
Goods received but not invoiced 5,799 7,343
Deposits received in advance 1,474 1,042
Wage subsidy received in advance 6 958 –
Loyalty reward programme 21 998 1,015
Employee entitlements 13,960 16,821
Make good provision on leased properties 17(A) 2,680 90
Accruals and other liabilities 26,941 30,486
Other provisions (including product warranty provisions) 757 3,935
135,403 157,534
Payable within 12 months 132,601 155,903
Payable beyond 12 months 2,802 1,631
135,403 157,534
A. Make good provision on leased properties
The Group has recognised a provision of $2.54 million for estimated make good costs in respect of its leased properties upon the adoption of NZ
IFRS 16 Leases as at 1 July 2019. During the year, the Group recognised an additional provision of $0.14 million in respect of new leased properties
which it signed up to. The balance of the make good provision as at 30 June 2020 is $2.68 million. These costs have been capitalised to the right-of-
use assets and are amortised over the life of the right-of-use assets.
The Group expects to settle this liability over the next 10–15 years as the leases expire.
PGG WRIGHTSON LIMITED | 29

Refer to
Accounting
Policies
– page 31.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
18 DEFINED BENEFIT LIABILITY
The Group makes contributions to the PGG Wrightson Employee Benefits Plan (the Plan), a defined benefit plan that provides a range of
superannuation and insurance benefits for employees and former employees. The Plan is registered under the Financial Markets Conduct Act
2013. The Plan is not open to new members. The Plan’s retired employees are entitled to receive an annual pension payment payable for their
remaining life, and in some cases, for the remaining life of a surviving spouse.
In June 2019, the Group brought the Plan to an actuarial equilibrium position (calculated on a different basis to the IFRS amounts below).
2020 2019 2018 2017 2016
$000 $000 $000 $000 $000
Present value of funded obligations (62,563) (61,624) (66,814) (71,106) (73,417)
Fair value of plan assets 52,725 55,741 59,092 58,835 52,702
Total defined benefit asset/(liability) (9,838) (5,883) (7,722) (12,271) (20,715)
The Group expects to pay $0.85 million in contributions to defined benefit plans in 2021 (2020: expected $1.01 million and paid $0.69 million).
Member contributions are expected to be $0.59 million in 2021 (2020: expected $0.65 million and paid $0.83 million).
As at 30 June 2020, the weighted average duration of the defined benefit obligation (DBO) is 12.5 years for the Plan (2019: 12.4 years).
A. Plan assets
2020 2019
% %
Consist of:
Equities 58 54
Fixed interest 29 28
Cash 13 18
100 100
Plan assets do not include any exposure to the Company’s ordinary shares (2019: Nil).
B. Actuarial assumptions at the reporting date
2020 2019
% %
Discount rate used (10 year New Zealand Government Bond rate) 0.91 1.57
Inflation 1.50 2.00
Future salary increases 2.00 3.00
Future pension increases 1.50 2.00
2020 2019
YEARS YEARS
Assumptions regarding future mortality are based on published statistics and experience.
Current longevities underlying the DBO values at the reporting date:
Longevity at age 65 for current pensioners
– Males 21 21
– Females 24 24
Longevity at age 65 for current members aged 45
– Males 24 24
– Females 28 28
30 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
18 DEFINED BENEFIT LIABILITY (CONTINUED)
C. Sensitivity analysis
The sensitivity of the DBO to changes in the weighted principal assumptions is:
2020 2020 2019 2019
DBO (INCREASE) DBO (INCREASE) DBO (INCREASE) DBO (INCREASE)
/ DECREASE WITH / DECREASE WITH / DECREASE WITH / DECREASE WITH
INCREASE IN DECREASE IN INCREASE IN DECREASE IN
ASSUMPTION ASSUMPTION ASSUMPTION ASSUMPTION
$000 $000 $000 $000
Discount rate (0.50% movement) 1,689 (2,252) 1,541 (1,849)
Salary growth rate (0.50% movement) (188) 63 (185) 123
Pension growth rate (0.25% movement) (1,001) 876 (801) 616
Life expectancy (1 year movement) (2,127) 2,127 (1,787) 1,787
D. Movement in net defined benefit liability
NET DEFINED BENEFIT ASSET/
DEFINED BENEFIT OBLIGATION FAIR VALUE OF PLAN ASSETS (LIABILITY)
2020 2019 2020 2019 2020 2019
$000 $000 $000 $000 $000 $000
Balance at 1 July (61,624) (66,814) 55,741 59,092 (5,883) (7,722)
Included in profit or loss:
Current service costs (613) (842) – – (613) (842)
Interest costs (937) (1,734) 845 1,623 (92) (111)
Included in other comprehensive income:
Gains/(losses) from change in financial assumptions (799) (3,797) – – (799) (3,797)
Experience gains/(losses) (3,059) (1,213) – – (3,059) (1,213)
Expected return on plan assets – – (84) (653) (84) (653)
Other:
Employer contributions – – 692 8,455 692 8,455
Member contributions (832) (1,268) 832 1,268 – –
Benefits paid by the plan 5,301 14,044 (5,301) (14,044) – –
Balance at 30 June (62,563) (61,624) 52,725 55,741 (9,838) (5,883)
Employee Benefits Accounting Policies
Defined benefit plans
The Group’s net obligation with respect to defined benefit plans is calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior periods, discounting that amount and deducting the fair value of any plan
assets is deducted. The discount rate is the yield at the reporting date on bonds that have maturity dates approximating the terms of the
Group’s obligations. The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation
results in a potential asset for the Group, the recognised asset is limited to the lower of the net assets of the plan or the current value of the
contributions holiday that is expected to be generated.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan assets, are recognised
directly in other comprehensive income and the defined benefit plan reserve in equity. Net interest expense and other expenses related to
defined benefit plans are recognised in profit or loss.
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the undiscounted amount of
short-term employee benefits expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result
of past service provided by the employee and the obligation can be estimated reliably.
Long-term employee benefits
Provisions made with respect to employee benefits which are not expected to be settled within twelve months are measured as the present
value of the estimated future cash outflows to be made by the Group with respect to services provided by employees up to reporting date.
Remeasurements are recognised in profit or loss in the period in which they arise.
PGG WRIGHTSON LIMITED | 31

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT
A. Accounting classifications and fair values
The tables below set out the Group’s classification of each class of financial assets and liabilities, and their fair values.
FAIR VALUE MANDATORILY
THROUGH OTHER AT FAIR VALUE
COMPREHENSIVE THROUGH PROFIT AT AMORTISED TOTAL CARRYING FAIR
INCOME OR LOSS COST AMOUNT VALUE
$000 $000 $000 $000 $000
2020
Assets
Cash and cash equivalents – – 16,868 16,868 16,868
Derivative financial instruments – 942 – 942 942
Trade and other receivables – – 104,571 104,571 104,571
Go livestock receivables – – 48,111 48,111 48,111
Other investments – – 471 471 471
– 942 170,021 170,963
Liabilities
Debt – – 50,000 50,000 50,000
Derivative financial instruments – 607 – 607 607
Trade and other payables – – 81,835 81,835 81,835
Lease liabilities – – 106,904 106,904
– 607 238,739 239,346
2019
Assets
Cash and cash equivalents – – 210,491 210,491 210,491
Derivative financial instruments – 1,001 – 1,001 1,001
Trade and other receivables – – 132,203 132,203 132,203
Go livestock receivables – – 47,754 47,754 47,754
Other investments – – 470 470 470
– 1,001 390,918 391,919
Liabilities
Debt – – 2,680 2,680 2,680
Derivative financial instruments – 342 – 342 342
Trade and other payables – – 96,802 96,802 96,802
– 342 99,482 99,824
The Group’s banking facilities are based on floating interest rates. Therefore, the fair value of the banking facilities equals the carrying value.
32 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
A. Accounting classifications and fair values (continued)
Fair value hierarchy
The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows:
– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
– Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie. as prices) or
indirectly (ie. derived from prices)
– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
$000 $000 $000 $000
2020
Assets
Derivative financial instruments – 942 – 942
Liabilities
Derivative financial instruments – 607 – 607
2019
Assets
Derivative financial instruments – 1,001 – 1,001
Liabilities
Derivative financial instruments – 342 – 342
There have been no material movements between the fair value hierarchy during the year ended 30 June 2020.
B. Financial management risk
The Group’s primary risks are those of liquidity and funding, credit and market (foreign currency, price and interest rate) risks.
The Group is committed to the management of risk to achieve sustainability of service, employment and profits, and therefore, takes on controlled
amounts of risk when considered appropriate. The Board of Directors is responsible for the review and ratification of the Group’s systems of risk
management, internal compliance and control, code of conduct and legal compliance. The Board maintains a formal set of delegated authorities
(including policies for credit and treasury) that clearly define the responsibilities delegated to Management and those retained by the Board. The
Board approves these delegated authorities and reviews them annually.
The following management committees review and manage key risks:
– The Senior Management Team meets regularly to consider new and emerging risks, review actions required to manage and mitigate key risks,
and to monitor progress.
– The Credit Committee, comprising of management appointees, meets regularly to review credit risk, account limits and provisioning.
Management formally reports on all aspects of key risks to the Audit Committee at least two times each year.
(i) Liquidity and funding risks
Liquidity risk is the risk that the Group will encounter difficulties in raising funds at short notice to meet commitments associated with financial
instruments. Funding risk is the risk of over-reliance on a funding source to the extent that a change in that funding source could increase overall
funding costs or cause difficulty in raising funds.
The Group manages liquidity risk by forecasting daily cash requirements and future funding requirements, and maintaining an adequate liquidity
buffer. The Group monitors its liquidity daily, weekly and monthly and maintains appropriate liquid assets and committed bank funding facilities to
meet all obligations in a timely and cost efficient manner. The Group has a policy of funding diversification and utilises a banking syndicate to limit
concentration risk in relation to liquidity and funding. The funding policy augments the Group’s liquidity policy with its aim to ensure the Group
has a stable diversified funding base without over-reliance on any one market sector.
The objectives of the Group’s funding and liquidity policy is to:
– Ensure all financial obligations are met when due;
– Provide adequate protection, even under crisis scenarios; and
– Achieve competitive funding within the limitations of liquidity requirements.
PGG WRIGHTSON LIMITED | 33

Refer to
Accounting
Policies
– page 37.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
B. Financial management risk (continued)
(i) Liquidity and funding risks (continued)
Contractual maturity analysis
The following schedule analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance date
to the contractual maturity date (reported on an undiscounted basis). History demonstrates that such accounts provide a stable source of long
term funding for the Group.
CONTRACTUAL CASH FLOW
WITHIN BEYOND AMOUNT IN
12 MONTHS 1 TO 5 YEARS 5 YEARS TOTAL BALANCE SHEET
$000 $000 $000 $000 $000
2020
Debt 31,456 20,103 – 51,559 50,000
Derivative financial instruments 562 45 – 607 607
Trade and other payables 81,835 – – 81,835 81,835
Lease liabilities 20,296 57,544 47,228 125,068 106,904
134,149 77,692 47,228 259,069 239,346
2019
Debt 2,813 – – 2,813 2,680
Derivative financial instruments 280 62 – 342 342
Trade and other payables 96,802 – – 96,802 96,802
99,895 62 – 99,957 99,824
(ii) Credit risk
Credit risk is the potential for loss that could occur as a result of a counterparty failing to discharge its obligations. This may be due to drought, bio-
security issues or volatility in commodity prices.
Concentrations of credit risk
Financial instruments which potentially subject the Group to concentrations of credit risk principally consist of bank balances, advances, trade
debtors, and forward foreign exchange contracts. The Group places its cash and short term investments with three major trading banks.
Concentrations of credit risk with respect to advances are limited due to the large number of customers included in the Group’s farming customer
base in New Zealand.
(iii) Market risk
Market risk is the potential for change in the value of balance sheet positions caused by a change in the value, volatility or relationship between
market risks and prices. Market risk arises from the mismatch between assets and liabilities, both on and off balance sheet. Market risk includes
price, foreign currency and interest rate risk which are explained as follows.
Concentrations of market risk
The Group has exposure to commodity pricing risk on Wool inventories. This is mitigated by the Group having policies around unmatched
positions. Other inventory is of merchandise nature and the Group has a range of suppliers or has entered into long-term supply agreements.
Foreign currency risk
The Group undertakes transactions denominated in foreign currencies and exposure to movements in foreign currency arises from these activities.
The Group manages this risk by using forward, spot foreign exchange contracts and foreign exchange options to hedge foreign currency risks as
they arise.
34 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
B. Financial management risk (continued)
(iii) Market risk continued
Foreign currency exposure risk
The Group’s exposure to foreign currency risk can be summarised as:
GBP USD AUD EURO
NZ$000 NZ$000 NZ$000 NZ$000
2020
Cash and cash equivalents – 1 13 1
Trade and other receivables 82 2,047 – 1,827
Trade and other payables (532) (8,366) (972) (2,151)
Net balance sheet position
(450) (6,318) (959) (323)
Forward exchange contracts
Notional forward exchange cover 8,356 (1,764) 972 (15,777)
Net unhedged position
(8,806) (4,555) (1,931) 15,454
2019
Cash and cash equivalents – 1 1 1
Trade and other receivables 1,213 2,235 237 4,697
Trade and other payables (565) (5,122) (1,758) (1,991)
Net balance sheet position
648 (2,886) (1,520) 2,707
Forward exchange contracts
Notional forward exchange cover 9,483 1,585 (1,758) 21,356
Net unhedged position
(8,835) (4,471) 238 (18,649)
Interest rate risk
Floating rate borrowings are used for general funding activities. Interest rate risk is the risk that the value of financial instruments and the interest
margin will fluctuate as a result of changes in market interest rates. The risk is that financial assets may be repriced at a different time and/or by a
different amount than financial liabilities.
This risk is managed by operating within approved policy limits using an interest rate duration approach. Interest rate swaps, interest rate options
and forward rate agreements may be used to hedge the floating rate exposure as deemed appropriate. The Group had no interest rate derivatives
at balance date (2019: Nil).
Refer to
Accounting
Policies
– page 37.
PGG WRIGHTSON LIMITED | 35

Refer to
Accounting
Policies
– page 37.
PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
(iii) Market risk continued
Interest rate repricing schedule
The following tables include the Group’s liabilities at their carrying amounts, categorised by the earlier of contractual repricing or maturity dates.
WITHIN 1 TO 2 OVER NON INTEREST
12 MONTHS YEARS 2 YEARS BEARING TOTAL
$000 $000 $000 $000 $000
2020
Debt 30,000 20,000 – – 50,000
Derivative financial instruments – – – 607 607
Trade and other payables – – – 81,835 81,835
30,000 20,000 – 82,442 132,442
2019
Debt 2,680 – – – 2,680
Derivative financial instruments – – – 342 342
Trade and other payables – – – 96,802 96,802
2,680 – – 97,144 99,824
Sensitivity analysis
The Group’s treasury policy effectively insulates earnings from the effect of short-term fluctuations in either foreign exchange or interest rates. Over
the longer term however, permanent changes in foreign exchange rates and interest rates will have an impact on profit. A 1% change in interest
rate has been applied as it is considered a reasonably possible change. The sensitivity of net profit after tax for the period to 30 June 2020, and
shareholders equity at that date, to reasonably possible changes in conditions is shown below.
INTEREST RATES INCREASE BY 1% INTEREST RATES DECREASE BY 1%
2020 2019 2020 2019
$000 $000 $000 $000
Increase/(decrease) in net profit after tax and shareholders’ equity (198) (748) 217 934
Other market risks such as pricing and foreign exchange are not considered likely to lead to material change over the next reporting period. The
Group’s financial assets and liabilities are predominantly held in NZD. For this reason, a sensitivity analysis of these market risks is not included.
C. Capital management
The capital of the Group consists of share capital, reserves, and retained earnings. The policy of the Group is to maintain a strong capital base so
as to maintain investor, creditor and market confidence while providing the ability to develop future business initiatives. This policy has not been
changed during the period.
36 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
19 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT (CONTINUED)
Non-Derivative Financial Instruments Accounting Policies
(i) Non-derivative financial assets
Non-derivative financial assets comprise cash and cash equivalents, trade and other receivables, and investments in equity and debt
securities.
The Group initially recognises financial assets on the date at which the Group becomes a party to the contractual provisions of the
instrument, although trade receivables are initially recognised when they are originated.
Financial assets are initially measured at fair value. If the financial asset is not subsequently measured at fair value through profit or loss, the
initial investment includes transaction costs that are directly attributable to the asset’s acquisition or origination. The Group subsequently
measures financial assets at either fair value or amortised cost.
Financial assets measured at amortised cost
A financial asset is subsequently measured at amortised cost using the effective interest method and net of any impairment loss, if:
– the asset is held within a business model with an objective to hold assets in order to collect contractual cash flows; and
– the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest.
Financial assets measured at fair value
Financial assets other than those classified as financial assets measured at amortised cost are subsequently measured at fair value with all
changes recognised in profit or loss.
However, for investments in equity instruments that are not held for trading, the Group may elect at initial recognition to present gains
and losses through other comprehensive income. For instruments measured at fair value through other comprehensive income gains
and losses are never reclassified to profit and loss and no impairments are recognised in profit and loss. Dividends earned from such
investments are recognised in profit and loss unless the dividends clearly represent a repayment of part of the cost of investment.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with
maturities of three months or less. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash
management are included as a component of cash and cash equivalents.
Trade and other receivables
Trade and other receivables are stated at their amortised cost less impairment losses.
(ii) Non-derivative financial liabilities
Interest-bearing borrowings
Interest-bearing borrowings are classified as other financial liabilities and are initially recognised at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.
Trade and other payables
Trade and other payables are stated at cost.
(iii) Determination of fair values for non-derivative financial instruments
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date.
PGG WRIGHTSON LIMITED | 37

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
20 COMMITMENTS
A. Capital expenditure not provided for
The Group does not have any capital commitments as at 30 June 2020 (2019: $0.11 million).
B. Forward purchase commitments
The Group as part of its ordinary course of business enters into forward purchase agreements with wool growers. These commitments extend for
periods of up to 3 years and are at varying stage of execution. There remains uncertainty associated with yield, quality and market price. Therefore,
the Group is unable to sufficiently quantify the value of these commitments.
21 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A. PGG Wrightson Loyalty Reward Programme
The Group recognises a provision for the expected level of points redemption from the PGG Wrightson Loyalty Reward Programme. As at balance
date, the balance of live points which does not form part of the recognised provision total $0.09 million (2019: $0.09 million). Losses are not
expected to arise from this contingent liability.
B. Contingent liabilities
The Group receives client claims from time to time as part of the ordinary course of business and these claims are reviewed on a case by case
basis to determine validity. As at balance date, the Group was in the process of reviewing certain claims for the supply of goods which are typically
the responsibility of suppliers under terms of trade. The amount of any potential obligation in respect of these claims cannot be estimated with
sufficient reliability and therefore, with the exception of the warranty provision of $0.4 million, the Group has no provisioning in respect of these
claims.
C. Contingent assets
The Group is pursuing a claim against a contractual counterparty for repudiation of contract. The Directors are confident in the validity of the claim,
however no receivable has been recognised at balance date as the outcome of the claim remains uncertain.
22 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. Livestock trading is weighted towards the second half
of the financial year in order for farmers to maximise their income as New Zealand generally has spring calving and lambing. 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.
23 SUBSEQUENT EVENTS
There have been no material events subsequent to balance date that impact on these consolidated financial statements.
38 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
24 RELATED PARTIES
A. Key management personnel compensation
2020 2019
$000 $000
Key management personnel compensation comprised:
Short-term employee benefits 3,216 7,129
Post-employment benefits 96 151
Termination benefits – 1,169
3,312 8,449
Directors fees incurred during the year are disclosed in Note 3 Other Operating Expenses.
B. Other transactions with key management personnel
Several Directors, Senior Executives or their related parties, hold positions in other entities that result in them having control or significant influence
over the financial or operating policies of these entities. A number of these entities transacted with the Group during the reporting period.
The terms and conditions of these transactions with key management personnel and their related parties were no more favourable than those
available, or which might reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an
arm’s length basis.
The aggregate value of transactions and outstanding balances (on a GST inclusive basis) relating to Directors, Senior Executives and entities over
which they have control or significant influence were as follows:
TRANSACTION BALANCE TRANSACTION BALANCE
VALUE OUTSTANDING VALUE OUTSTANDING
2020 2020 2019 2019
$000 $000 $000 $000
Key Management
Personnel/Director Transaction
Nick Berry Purchase of retail goods 2 – – –
(from 1 August 2019)
David Cushing Purchase of retail goods, livestock and wool 2,424 43 392 37
transactions. Also includes real estate
commissions on a property sale
Grant Edwards Purchase of retail goods – – 1 –
Stephen Guerin Purchase of retail goods and livestock transactions 9 1 7 1
Peter Moore Purchase of retail goods and 5 1 – –
fuel on-charge transactions
Peter Newbold Purchase of retail goods 25 3 27 2
Peter Scott Purchase of retail goods and 4 1 – –
fuel on-charge transactions
PGG WRIGHTSON LIMITED | 39

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
25 REPORTING ENTITY
PGG Wrightson Limited (the “Company”) is a company domiciled in New Zealand and registered under the Companies Act 1993 in New Zealand.
The Company’s registered office is at 1 Robin Mann Place, Christchurch. The Company is listed on the New Zealand Stock Exchange and is an FMC
reporting entity for the purposes of the Financial Markets Conduct Act 2013.
The consolidated financial statements of PGG Wrightson for the year ended 30 June 2020 comprise the Company and its subsidiaries (together
referred to as the “Group”). The Group is primarily involved in the provision of goods and services within the agricultural and horticultural sectors.
OWNERSHIP INTEREST
COUNTRY OF 2020 2019
SIGNIFICANT SUBSIDIARIES INCORPORATION DIRECT PARENT % %
Agriculture New Zealand Limited New Zealand PGG Wrightson Limited 100% 100%
AgriServices South America Limited New Zealand PGG Wrightson Limited 100% 100%
Bidr Limited New Zealand PGG Wrightson Limited 100% 100%
Bloch & Behrens Wool (NZ) Limited New Zealand PGG Wrightson Limited 100% 100%
NZ Agritrade Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Investments Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Real Estate Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Trustee Limited New Zealand PGG Wrightson Limited 100% 100%
PGG Wrightson Employee Benefits Plan Trustee Limited New Zealand PGG Wrightson Limited 100% 100%
PGW Rural Capital Limited New Zealand PGG Wrightson Limited 100% 100%
Ag Property Holdings Limited New Zealand PGG Wrightson Investments Limited 100% 100%
PGG Wrightson Employee Benefits Plan Limited New Zealand PGG Wrightson Employee Benefits
Plan Trustee Limited 100% 100%
40 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
26 BASIS OF PREPARATION
Statement of compliance
These consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ
GAAP”). They comply with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board, the New
Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and other applicable Financial Reporting Standards, as appropriate
for a Tier 1 for-profit entity. These consolidated financial statements have also been prepared in accordance with the requirements of the Financial
Markets Conduct Act 2013 and the Financial Reporting Act 2013.
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for the following:
– Derivative financial instruments are measured at fair value.
– Financial instruments at fair value through profit or loss are measured at fair value.
– Assets classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell.
– Biological assets are measured at fair value less point-of-sale costs.
Functional and presentation currency
These consolidated financial statements are presented in New Zealand dollars ($), which is the Group’s functional currency. All amounts have been
rounded to the nearest thousand, unless otherwise indicated.
Use of estimates and judgements
In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application
of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates and assumptions.
Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
Information about critical judgements made in applying accounting policies, assumptions and estimation uncertainties that have the most
significant effect on the amounts recognised in the consolidated financial statements is included in the following notes:
Note
1 Operating revenue from construction contracts
11 Carrying value of trade and other receivables
13 Carrying value of inventories
15 Right-of-use assets and lease liabilities – Lease term (renewal options to be exercised) and discount rates
18 Measurement of defined benefit liability – Key actuarial assumptions
Management has determined that the COVID-19 pandemic has not significantly impacted the estimates and judgements used on the
consolidated statement of financial position as at 30 June 2020. Management will continue to monitor and assess the impacts of future
developments of COVID-19, which are highly uncertain and cannot be predicted, on its judgements and estimates.
Comparative information
Certain comparative amounts have been reclassified to conform with the current period’s presentation, including the treatment of $10.4 million of
fuel oncharge revenue and corresponding cost of sales that have now been netted, resulting in no change to gross profit or net profit after tax. In
addition, the comparatives have been restated to present the Standardbred business as a discontinued operation.
PGG WRIGHTSON LIMITED | 41

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
27 OTHER SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out in these consolidated financial statements have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied consistently by Group entities.
A. Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The consolidated financial statements
of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control
ceases.
Transactions eliminated on consolidation
Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated
financial statements. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the
extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there
is no evidence of impairment.
B. Foreign currency
Transactions in foreign currencies are translated to the respective functional currencies of the group entities at the exchange rates at the dates of
the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting
date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated to the functional currency at the
exchange rate at the date that fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency
are translated to the functional currency at the exchange rate at the date of the transaction. Foreign currency differences arising are recognised in
profit or loss.
C. Discontinued operation
A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the
rest of the Group and which:
– represents a separate major line of business or geographic area of operations;
– is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or
– is a subsidiary acquired exclusively with a view to resale.
When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-presented as if the operation
had been discontinued from the start of the comparative year.
D. Disclosure of non-GAAP financial information
Non-GAAP reporting measures have been presented in the consolidated statement of profit or loss or referenced to in the notes to the
consolidated financial statements. The following non-GAAP measures are relevant to the understanding of the Group financial performance:
– Operating EBITDA represents earnings before net interest and finance costs, income tax, depreciation, amortisation, results from discontinued
operations, fair value adjustments and non-operating items.
– EBITDA represents earnings before net interest and finance costs, income tax, depreciation, amortisation and the results from discontinued
operations.
– Basic & diluted EPS on issued ordinary shares at the end of the period represents the net profit after tax for the reporting period divided by the
outstanding number of shares as at the end of the reporting period.
– Impact of NZ IFRS 16 on the consolidated financial statements for the year ended 30 June 2020.
The Directors and management believe the Operating EBITDA and EBITDA measures provide useful information as they provide valuable insight
on the underlying performance of the business. They are used internally to evaluate the underlying performance of the business and to analyse
trends.
Due to the share consolidation which occurred in August 2019, the Directors and management consider the basic & diluted EPS on issued ordinary
shares at the end of the period measure facilitates a more meaningful comparison against the dividend per share measure for the 2020 year.
These measures are not uniformly defined or utilised by all companies. Accordingly, these measures may not be comparable with similarly titled
measures used by other companies. Non-GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures
reported in accordance with NZ IFRS.
42 | PGG WRIGHTSON LIMITED

PGG WRIGHTSON LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2020
27 OTHER SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Standards issued but not yet effective
A number of new standards and interpretations are not yet effective for the year ended 30 June 2020 and have not been applied in preparing
these consolidated financial statements. These include:
– Definition of Material (Amendment to IAS 1 and IAS 8)
– A variety of minor improvements to standards have been made in order to clarify various treatments of specific transactions.
The above are not expected to have a significant impact on the Group’s consolidated financial statements.
28 CAPITAL AND RESERVES
Share capital
All shares are ordinary fully paid shares with no par value, carry equal voting rights and share equally in any profit on the winding up of the Group.
Foreign currency translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the consolidated financial statements of foreign
operations and the translation of liabilities that hedge the Group’s net investment in a foreign subsidiary. Following the sale of the Seed & Grain
segment which includes all of the Group’s foreign operations and subsidiaries, the amount in the translation reserve has been taken to profit or loss
(within gain on sale in discontinued operations) and the translation reserve was cleared to nil.
Realised capital and revaluation reserve
The realised capital reserve comprises the cumulative net capital gains that have been realised. The revaluation reserve relates to historic
revaluations of property, plant and equipment. The balances relating to the Seed & Grain segment have been transferred to retained earnings.
Defined benefit plan reserve
The defined benefit plan reserve contains actuarial gains and losses on plan assets and defined benefit obligations. During the year ended 30 June
2020, no amount was transferred from the defined benefit reserve to retained earnings (30 June 2019: $2.77 million which represented the tax
impact of lump sum cash contributions made during that year).
Fair value reserve
The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets and equity investments elected at
fair value through other comprehensive income until the investments are derecognised or impaired.
Retained earnings
Retained earnings equals accumulated undistributed profit.
Dividends
The following dividends were declared and paid by the Company during the year.
PAYMENT DATE $ PER SHARE
2020 interim dividend – fully imputed (post-share consolidation) 3 April 2020 0.09000
2019 final dividend – fully imputed (post-share consolidation) 2 October 2019 0.07500
2019 interim dividend – fully imputed (pre-share consolidation) 5 April 2019 0.00750
2018 final dividend – fully imputed (pre-share consolidation) 3 October 2018 0.01250
Share Capital Accounting Policies
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction
from equity.
Repurchase of ordinary shares
When shares recognised as equity are repurchased, the amount of the consideration paid, including directly attributable costs, is recognised
as a deduction from equity. Repurchased shares are cancelled. However, treasury stock for which unrestricted ownership has not yet been
transferred are not cancelled.
PGG WRIGHTSON LIMITED | 43

ADDITIONAL FINANCIAL DISCLOSURES
44 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 45
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND REVALUATION
DEFINED BENEFIT FAIR VALUE RETAINED NON-CONTROLLING TOTA L
CAPITAL RESERVE RESERVES 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)
Adjusted balance at 1 July 2018 606,324 (3,723) 23,999 (9,042) (2,587) (330,311) 2,478 287,138
Total comprehensive income for the period
Profit or loss – – –
– – 131,123 683 131,806
Other comprehensive income
Foreign currency translation differences – (867) – – – – (17) (884)
Changes in asset revaluation reserve – – 403 – – – – 403
Changes in fair value of equity instruments, net of tax – – – – 21 – – 21
Defined benefit plan actuarial gain/(loss), net of tax – – – (5,398) – – – (5,398)
Total other comprehensive income – (867) 403 (5,398) 21 – (17) (5,858)
Total comprehensive income for the period – (867) 403 (5,398) 21 131,123 666 125,948
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (6) – – – – – – (6)
Dividends to shareholders – – – – – (15,267) (1,189) (16,456)
Total contributions by and distributions to shareholders (6) – – – – (15,267) (1,189) (16,462)
Sale of PGG Wrightson Seed Holdings Limited
Reclassification of reserves to profit or loss – 3,741 – – – – (2,101) 1,640
Reclassification of reserves to retained earnings – 849 260 – – (1,255) 146 –
Total reclassification to profit or loss – 4,590 260 – – (1,255) (1,955) 1,640
Transfer to retained earnings – – – 2,768 – (2,768) – –
Balance at 30 June 2019 606,318 – 24,662 (11,672) (2,566) (218,478) – 398,264
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 – – –
– – 7,840 – 7,840
Other comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax – – – (2,838) – – – (2,838)
Total other comprehensive income – – – (2,838) – – – (2,838)
Total comprehensive income for the period – – – (2,838) – 7,840 – 5,002
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (234,000) – –
– – – – (234,000)
Dividends to shareholders – – – – – (12,564) – (12,564)
Total contributions by and distributions to shareholders (234,000) – – – – (12,564) – (246,564)
Balance at 30 June 2020 372,318 – 24,662 (14,510) (2,566) (223,202) – 156,702
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
44 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 45
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND REVALUATION
DEFINED BENEFIT FAIR VALUE RETAINED NON-CONTROLLING TOTA L
CAPITAL RESERVE RESERVES 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)
Adjusted balance at 1 July 2018 606,324 (3,723) 23,999 (9,042) (2,587) (330,311) 2,478 287,138
Total comprehensive income for the period
Profit or loss – – –
– – 131,123 683 131,806
Other comprehensive income
Foreign currency translation differences – (867) – – – – (17) (884)
Changes in asset revaluation reserve – – 403 – – – – 403
Changes in fair value of equity instruments, net of tax – – – – 21 – – 21
Defined benefit plan actuarial gain/(loss), net of tax – – – (5,398) – – – (5,398)
Total other comprehensive income – (867) 403 (5,398) 21 – (17) (5,858)
Total comprehensive income for the period – (867) 403 (5,398) 21 131,123 666 125,948
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (6) – – – – – – (6)
Dividends to shareholders – – – – – (15,267) (1,189) (16,456)
Total contributions by and distributions to shareholders (6) – – – – (15,267) (1,189) (16,462)
Sale of PGG Wrightson Seed Holdings Limited
Reclassification of reserves to profit or loss – 3,741 – – – – (2,101) 1,640
Reclassification of reserves to retained earnings – 849 260 – – (1,255) 146 –
Total reclassification to profit or loss – 4,590 260 – – (1,255) (1,955) 1,640
Transfer to retained earnings – – – 2,768 – (2,768) – –
Balance at 30 June 2019 606,318 – 24,662 (11,672) (2,566) (218,478) – 398,264
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 – – –
– – 7,840 – 7,840
Other comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax – – – (2,838) – – – (2,838)
Total other comprehensive income – – – (2,838) – – – (2,838)
Total comprehensive income for the period – – – (2,838) – 7,840 – 5,002
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (234,000) – –
– – – – (234,000)
Dividends to shareholders – – – – – (12,564) – (12,564)
Total contributions by and distributions to shareholders (234,000) – – – – (12,564) – (246,564)
Balance at 30 June 2020 372,318 – 24,662 (14,510) (2,566) (223,202) – 156,702
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
44 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 45
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND REVALUATION DEFINED BENEFIT FAIR VALUE RETAINED NON-CONTROLLING TOTA L
CAPITAL RESERVE RESERVES 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)
Adjusted balance at 1 July 2018 606,324 (3,723) 23,999 (9,042) (2,587) (330,311) 2,478 287,138
Total comprehensive income for the period
Profit or loss – – – – – 131,123 683 131,806
Other comprehensive income
Foreign currency translation differences – (867) – – – – (17) (884)
Changes in asset revaluation reserve – – 403 – – – – 403
Changes in fair value of equity instruments, net of tax – – – – 21 – – 21
Defined benefit plan actuarial gain/(loss), net of tax – – – (5,398) – – – (5,398)
Total other comprehensive income – (867) 403 (5,398) 21 – (17) (5,858)
Total comprehensive income for the period – (867) 403 (5,398) 21 131,123 666 125,948
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (6) – – – – – – (6)
Dividends to shareholders – – – – – (15,267) (1,189) (16,456)
Total contributions by and distributions to shareholders (6) – – – – (15,267) (1,189) (16,462)
Sale of PGG Wrightson Seed Holdings Limited
Reclassification of reserves to profit or loss – 3,741 –
– – – (2,101) 1,640
Reclassification of reserves to retained earnings – 849 260 – – (1,255) 146 –
Total reclassification to profit or loss – 4,590 260 – – (1,255) (1,955) 1,640
Transfer to retained earnings – – – 2,768 – (2,768) – –
Balance at 30 June 2019 606,318 – 24,662 (11,672) (2,566) (218,478) – 398,264
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 – – – – – 7,840 – 7,840
Other comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax – – – (2,838) – – – (2,838)
Total other comprehensive income – – – (2,838) – – – (2,838)
Total comprehensive income for the period – – – (2,838) – 7,840 – 5,002
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (234,000) – – – – – – (234,000)
Dividends to shareholders – – – – – (12,564) – (12,564)
Total contributions by and distributions to shareholders (234,000) – – – – (12,564) – (246,564)
Balance at 30 June 2020 372,318 – 24,662 (14,510) (2,566) (223,202) – 156,702
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
44 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 45
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND REVALUATION DEFINED BENEFIT FAIR VALUE RETAINED NON-CONTROLLING TOTA L
CAPITAL RESERVE RESERVES 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)
Adjusted balance at 1 July 2018 606,324 (3,723) 23,999 (9,042) (2,587) (330,311) 2,478 287,138
Total comprehensive income for the period
Profit or loss – – – – – 131,123 683 131,806
Other comprehensive income
Foreign currency translation differences – (867) – – – – (17) (884)
Changes in asset revaluation reserve – – 403 – – – – 403
Changes in fair value of equity instruments, net of tax – – – – 21 – – 21
Defined benefit plan actuarial gain/(loss), net of tax – – – (5,398) – – – (5,398)
Total other comprehensive income – (867) 403 (5,398) 21 – (17) (5,858)
Total comprehensive income for the period – (867) 403 (5,398) 21 131,123 666 125,948
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (6) – – – – – – (6)
Dividends to shareholders – – – – – (15,267) (1,189) (16,456)
Total contributions by and distributions to shareholders (6) – – – – (15,267) (1,189) (16,462)
Sale of PGG Wrightson Seed Holdings Limited
Reclassification of reserves to profit or loss – 3,741 – –
– – (2,101) 1,640
Reclassification of reserves to retained earnings – 849 260 – – (1,255) 146 –
Total reclassification to profit or loss – 4,590 260 – – (1,255) (1,955) 1,640
Transfer to retained earnings – – – 2,768 – (2,768) – –
Balance at 30 June 2019 606,318 – 24,662 (11,672) (2,566) (218,478) – 398,264
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 – – – – – 7,840 – 7,840
Other comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax – – – (2,838) – – – (2,838)
Total other comprehensive income – – – (2,838) – – – (2,838)
Total comprehensive income for the period – – – (2,838) – 7,840 – 5,002
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (234,000) – – – – – – (234,000)
Dividends to shareholders – – – – – (12,564) – (12,564)
Total contributions by and distributions to shareholders (234,000) – – – – (12,564) – (246,564)
Balance at 30 June 2020 372,318 – 24,662 (14,510) (2,566) (223,202) – 156,702
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
ADDITIONAL FINANCIAL DISCLOSURES
44 | PGG WRIGHTSON LIMITEDPGG WRIGHTSON LIMITED | 45
FOREIGN CURRENCY REALISED CAPITAL
SHARE TRANSLATION AND REVALUATION DEFINED BENEFIT FAIR VALUE RETAINED NON-CONTROLLING TOTA L
CAPITAL RESERVE RESERVES 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)
Adjusted balance at 1 July 2018 606,324 (3,723) 23,999 (9,042) (2,587) (330,311) 2,478 287,138
Total comprehensive income for the period
Profit or loss – – – – – 131,123 683 131,806
Other comprehensive income
Foreign currency translation differences – (867) – – – – (17) (884)
Changes in asset revaluation reserve – – 403 – – – – 403
Changes in fair value of equity instruments, net of tax – – – – 21 – – 21
Defined benefit plan actuarial gain/(loss), net of tax – – – (5,398) – – – (5,398)
Total other comprehensive income – (867) 403 (5,398) 21 – (17) (5,858)
Total comprehensive income for the period – (867) 403 (5,398) 21 131,123 666 125,948
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (6) – – – – – – (6)
Dividends to shareholders – – – – – (15,267) (1,189) (16,456)
Total contributions by and distributions to shareholders (6) – – – – (15,267) (1,189) (16,462)
Sale of PGG Wrightson Seed Holdings Limited
Reclassification of reserves to profit or loss – 3,741 – – – –
(2,101) 1,640
Reclassification of reserves to retained earnings – 849 260 – – (1,255) 146 –
Total reclassification to profit or loss – 4,590 260 – – (1,255) (1,955) 1,640
Transfer to retained earnings – – – 2,768 – (2,768) – –
Balance at 30 June 2019 606,318 – 24,662 (11,672) (2,566) (218,478) – 398,264
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 – – – – – 7,840 – 7,840
Other comprehensive income
Defined benefit plan actuarial gain/(loss), net of tax – – – (2,838) – – – (2,838)
Total other comprehensive income – – – (2,838) – – – (2,838)
Total comprehensive income for the period – – – (2,838) – 7,840 – 5,002
Transactions with shareholders recorded directly in equity
Contributions by and distributions to shareholders
Share repurchase and cancellation (234,000) – – – – – – (234,000)
Dividends to shareholders – – – – – (12,564) – (12,564)
Total contributions by and distributions to shareholders (234,000) – – – – (12,564) – (246,564)
Balance at 30 June 2020 372,318 – 24,662 (14,510) (2,566) (223,202) – 156,702
The accompanying notes form an integral part of these consolidated financial statements.
PGG WRIGHTSON LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Independent Auditor’s Report
To the shareholders of PGG Wrightson Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of PGG Wrightson Limited
(the ’company’) and its subsidiaries (the 'Group') on
pages
i.present fairly in all material respects the Group’s
financial position as at 30 June 2020 and its
financial performance and cash flows for the
year ended on that date; and
ii.comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
—the consolidated statement of financial position
as at 30 June 2020;
—the consolidated statements of profit or loss,
other comprehensive income, cash flows and
changes in equity for the year then ended;
—the segment report as at and for the year
ended 30 June 2020; and
—additional financial disclosures, including notes
to the financial statements.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 (Revised) Code of
Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (‘IESBA
Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the Group in relation to regulatory assurance. Subject to certain
restrictions, partners and employees of our firm may also deal with the Group on normal terms within the
ordinary course of trading activities of the business of the Group. These matters have not impaired our
independence as auditor of the Group. The firm has no other relationship with, or interest in, the Group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $1,000,000 determined with reference to a combined benchmark of Group
revenue and profit before tax. We chose the benchmark because, in our view, this is a key measure of the
Group’s performance that incorporated the impact of one-off events.
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46 | PGG WRIGHTSON LIMITED

Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements
The key audit matter How the matter was addressed in our audit
Economic Risk Factors – Impact of commodity price movements on the recoverability of trade
receivables ($122.9m – refer note 11) and carrying value of inventory ($87.1m – refer note 13)
The Group is exposed to both
domestic and international
economic risk due to
movements in commodity
prices.
Global economies have
experienced significant price
volatility following the
outbreak of the COVID-19
global pandemic. This has
seen varied impacts on
different agricultural
commodities and the New
Zealand dollar
This is considered a key audit
matter given the impact that
commodity prices have on
the carrying value of certain
inventory items (primarily
Wool) and in respect of on-
farm performance and hence
the ability for the Group to
collect outstanding
receivables.
Both inventory and trade
receivables represent
significant components of the
Group balance sheet.
Our audit procedures included:
— Evaluating whether the aged trade receivable listing (used as the initial
basis by management to determine whether a provision is required) was
complete and accurately reflected the aging of outstanding amounts. We
agreed a sample of individual outstanding trade receivables to original
sales documentation.
— Challenging the methodology applied by management to calculate the
provision for doubtful debts by considering the policy applied
and whether
the underlying assumptions were appropriate, including the impact of
COVID-19 on expected credit losses.
— Assessing the level of provision for doubtful debts at year end by
comparing to the actual losses recognised during the current and historical
years. We also considered whether the ageing of historical balances had
deteriorated and tested a sample of trade receivables to subsequent cash
receipt.
— Challenging the methodology applied by management to calculate the
inventory provision. In addition, we checked a sample of inputs into
inventory provision calculations, including current market prices for
commodity inventory held.
— Assessing any forward inventory purchase commitments, specifically
Wool to the value of confirmed and anticipated sales contracts.
— Comparing products sold with negative margin during the financial year to
the level of product on hand at year end and assessing whether the
inventory is held at the lower of cost and net realisable value.
Our procedures did not identify any variations that would materially impact the
carrying value of trade receivables or inventory.
Lease accounting - Adoption of NZ IFRS 16 ($104.6m right of use assets and $106.9m lease liabilities –
refer note 15)
As a national provider to the
agricultural sector, the Group
have a broad range of
property and vehicle leases.
The Group adopted the new
accounting standard NZ IFRS
16 - Leases during the
financial year, resulting in the
Our audit procedures included:
— Assessing the completeness of the Group’s leases by testing the Group’s
monthly NZ IFRS 16 adjustment against the lease cash payments for the
month, reconciling the opening leases to the prior year closing operating
lease note.
PGG WRIGHTSON LIMITED | 47

The key audit matter How the matter was addressed in our audit
recognition of leases on
balance sheet.
This is a key audit matter due
to the extent of lease
agreements and the
judgement associated in
determining the present value
of future lease payments,
including the discount rate
and lease term.
The adoption of NZ IFRS 16
has had a wide-ranging
impact on the financial
statement disclosures. The
Group has elected to include
additional disclosures, beyond
the impact of initial adoption,
to present performance on a
comparable basis to the prior
year.
—Obtaining an understanding of the Group’s processes and controls to
calculate the lease liability, right-of-use asset, depreciation and interest
expense.
—Selecting a sample of leases to agree key inputs to underlying source
documents and assess whether the model calculated the lease liability,
right-of-use asset, depreciation and interest expense appropriately.
—Considering the appropriateness of the Group’s determination of lease
terms based on the probability of exercising rights of renewal under lease
agreements, the incremental borrowing rates applied by the Group, and
considering the Group
’s new accounting policies against the requirements
of the accounting standard.
—Assessing whether there were any indications of impairment against the
right of use assets at year end and challenging managements impairment
assessment for identified property leases.
—Assessing the disclosures in the financial statements using our
understanding obtained from our testing and against the requirements of
the accounting standard.
Our procedures did not identify any variations that would materially impact the
adoption or application of NZ IFRS 16 - Leases.
Other information
The Directors, on behalf of the Group, are responsible for the other information included in the Group’s Annual
Report. Other information may include the Chairman and Chief Executive Officer’s report, disclosures relating to
corporate governance, statutory disclosures and shareholder information. Our opinion on the consolidated
financial statements does not cover any other information and we do not express any form of assurance
conclusion thereon.
The Annual Report is expected to be made available to us after the date of this Independent Auditor's Report. Our
responsibility is to read the Annual Report when it becomes available and consider whether the other information
it contains is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the
audit, or otherwise appear misstated. If so, we are required to report such matters to the Directors.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
48 | PGG WRIGHTSON LIMITED

— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards);
— implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
— to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Peter Taylor.
For and on behalf of


KPMG
Christchurch
17 August 2020


PGG WRIGHTSON LIMITED | 49

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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 12 months to 30 June 2020
Previous Reporting Period 12 months to 30 June 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$788,036 -1.4%
Total Revenue $788,328 -32.6%
Net profit/(loss) from
continuing operations
$7,133 +58.2%
Total net profit/(loss) $7,840 -94.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
N/A

Imputed amount per Quoted
Equity Security
N/A

Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.685

$0.492

A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the accompanying market commentary and
consolidated 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). Total net profit for the prior comparable period
included the gain on the sale of the 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

18/08/2020

Audited financial statements accompany this announcement.