DGL – Interim Results to 31 Dec 2020

Results for announcement to the market
Name of issuer Delegat Group Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations
$177,684
12%
Total Revenue $177,684 12%
Operating Profit from ordinary activities after tax (Operating
NPAT)
1

$43,102 25%
Operating Profit from ordinary activities before interest, tax
and depreciation (Operating EBITDA)
1

$76,096 19%
Reported Profit from continuing operations $39,232 31%
Total net profit $39,232 31%
Interim/Final Dividend
Amount per Quoted Equity Security Not Applicable
Imputed amount per Quoted Equity Security Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable
period
Net tangible assets per Quoted Equity Security $4.14 $3.60
A brief explanation of any of the figures above necessary to
enable the figures to be understood
Refer to the Executive Chairman’s Report
appended for Operating Performance and
other key metric information.
Authority for this announcement
Name of person

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

24/02/2021

Unaudited financial statements accompany this announcement.



1. Operating Performance is a non-GAAP measure and as such does not have a standardized meaning prescribed by
GAAP. It may therefore not be comparable to non-GAAP measures presented by other entities.

NO.1
New Zealand wine
exporter to the world.
*
Delegat Group Limited
Interim Report 2021

Contents
*New Zealand Winegrowers Inc. 30 June 2020
2
Executive Chairman’s Report
6
Statement of Financial
Performance
7
Statement of Other
Comprehensive Income
8
Statement of Changes in Equity
10
Statement of Financial Position
12
Statement of Cash Flows
15
Notes to the Financial
Statements
19
Directory

1. Operating Performance is a non-GAAP measure and as such does not have a standardised meaning prescribed by GAAP. It may therefore not
be comparable to non-GAAP measures presented by other entities.
Executive Chairman’s Report
On behalf of the Board of Directors of Delegat Group Limited, it is with great pleasure that I present
to you another record six months for Delegat Group Limited on our journey to build a leading global
Super Premium wine company. I am pleased to present its operating and financial results for the six
months ended 31 December 2020, which has been an outstanding period for the Group.
The Group presents its financial statements in accordance with the New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS).
To provide further insight into the Group’s underlying operational performance, the Group has also
included in this report an Operating Performance Report. This Operating Performance Report excludes
the impact of fair value adjustments required under NZ IFRS for grapes and derivative financial
instruments. As a fully integrated winemaking and sales operation, Operating Profit includes the fair
value adjustment in respect of grapes when packaged wine is sold rather than on harvest of the grapes,
and the fair value adjustment on derivative financial instruments when these foreign exchange contracts
and interest rate swaps are realised.
The Group has included a reconciliation of Operating Profit to Reported Profit which eliminates from
each line in the Statement of Financial Performance the impact of these fair value adjustments.
DELEGAT INTERIM REPORT 2021
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EXECUTIVE CHAIRMAN’S REPORT
2
Dec 2020 Dec 2019 % change
NZ$ millions vs 2019
Operating Revenue
1
172.8 156.7 10%
Operating Gross Profit
2
90.8 82.6 10%
Operating Gross Margin 53% 53%
Operating Expenses
3
(26.3) (29.1) 10%
Operating EBIT
4
64.5 53.5 21%
Operating EBIT % of Revenue 37% 34%
Interest and Tax (21.4) (19.1) -12%
Operating NPAT
4
43.1 34.4 25%
Operating NPAT % of Revenue 25% 22%
Operating EBITDA
4
76.1 64.2 19%
Operating EBITDA % of Revenue 44% 41%
Notes:
1. Operating Revenue is before fair value movements on derivative financial instruments (if gains).
2. Operating Gross Profit is before the net fair value movements on biological produce (harvest adjustment) and the NZ IFRS adjustments excluded in Note 1.
3. Operating Expenses are before fair value movements on derivative financial instruments (if losses).
4. Operating EBIT, EBITDA and NPAT are before any fair value adjustments.
Table 1
Operating Performance
1

Operating Performance
A record Operating NPAT of $43.1 million was generated compared to $34.4 million for the same period
the previous year. Operating EBIT of $64.5 million is $11.0 million higher than for the same period the
previous year (refer to table 1).
Delegat achieved Operating Revenue of $172.8 million on global case sales of 1,862,000 in the six month
period. Revenue is up $16.1 million on the same period last year due to a 7% increase in global case sales
and the favourable impact of market and product mix.
The Group’s case sales performance and foreign currency rates achieved are detailed in table 2.
Operating Gross Profit is up 10% on the same period last year. This is due to the increased case sales
and favourable impact of market and product mix, which have offset an unfavourable impact of foreign
exchange rate changes. Operating expenses (before NZ IFRS adjustments) at $26.3 million are $2.8
million lower compared to the same period in the previous year. This is primarily due to the impact of
COVID-19 restrictions in the current year, whereby travel, entertainment and other operating expenses
have been restricted in most markets.
DELEGAT INTERIM REPORT 2021
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EXECUTIVE CHAIRMAN’S REPORT
3
Dec 2020 Dec 2019 % change
Case Sales (000s) vs 2019
UK, Ireland and Europe 675 601 12%
North America (USA and Canada) 843 722 17%
Australia, NZ and Asia Pacific 344 410 -16%
Total Cases 1,862 1,733 7%

Foreign Currency Rates
GB£ 0.5058 0.5054 0%
AU$ 0.9344 0.9393 1%
US$ 0.6691 0.6519 -3%
CA$ 0.8776 0.8651 -1%
Table 2
Case Sales and Foreign Currency

NZ IFRS Fair Value Adjustments
In accordance with NZ IFRS, the Group is required to account for certain of their assets at ‘fair value’
rather than at historic cost. All movements in these fair values are reflected in and impact the Statement
of Financial Performance. The Group records adjustments in respect of two significant items at the half-
year reporting date, as detailed in table 3.
• Harvest Provision Release (Grapes) – Inventory is valued at market value, rather than costs incurred,
at harvest. Any fair value adjustment is excluded from Operating Performance for the year, by creating
a Harvest Provision. This Harvest Provision is then released through Cost of Sales when inventory is
sold in subsequent years. This represents the reversal of prior periods’ fair value adjustments in respect
of biological produce as finished wine is sold in subsequent years. This adjustment has resulted in a
write-down of $10.3 million for the period (December 2019: write-down of $8.7 million);
• Derivative Financial Instruments held to hedge the Group’s foreign currency and interest rate exposure.
The mark-to-market movement of these instruments at balance date resulted in a fair value write-up of
$4.9 million (December 2019: write-up of $2.4 million).
The adjustments, net of taxation, amount to a write-down of $3.9 million (December 2019: write-down
of $4.5 million).
Reconciliation of Reporting to Operating Performance
Accounting for all fair value adjustments under NZ IFRS, the Group’s reported unaudited financial
performance for the six months ended 31 December 2020 is reconciled to Operating Profit as detailed
in table 4.
Impact of Fair Value Adjustments
Table 3
Dec 2020 Dec 2019 % change
NZ$ millions vs 2019
Operating NPAT 43.1 34.4 25%
Operating NPAT % of Revenue 25% 22%
NZ IFRS Fair Value Items
Biological Produce (Grapes)
1
(10.3) (8.7) -18%
Derivative Financial Instruments 4.9 2.4 104%
Total Fair Value Items (5.4) (6.3) 15%
Less: Tax 1.5 1.8 -15%
Fair Value Items after Tax (3.9) (4.5) 15%
Reported NPAT 39.2 29.9 31%
DELEGAT INTERIM REPORT 2021
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EXECUTIVE CHAIRMAN’S REPORT
4
Notes:
1. Biological Produce (Grapes) is the difference between market value paid for grapes versus the cost to grow grapes.
The Harvest Provision is reversed and only recognised when the finished wine is sold.

Cash Flow
The Group generated record Cash Flows from Operations of $42.9 million in the current half-year,
which is an increase of $7.4 million or 21% on the same period last year. This increase is due to strong
cash collections from customers, which has more than offset higher net income tax paid. A total of $37.4
million was paid for additional property, plant and equipment during the period, including vineyard
developments in New Zealand, and development of the Hawke’s Bay and Marlborough wineries, which
will provide earnings growth into the years ahead. The Group distributed $17.2 million to shareholders
in dividends. Net borrowings of $11.6 million were drawn down during the six month period.
Having secured a $330.0 million syndicate Senior Debt facility in 2019 the Group is well positioned
to fund its current operations as well as future capital investment in both New Zealand and Australia.
The Group’s Net Debt at 31 December 2020 amounted to $254.1 million, a decrease of $13.7 million
compared with the last half-year and well within the Group’s long-term bank debt facilities.
Looking Forward
The Group is on target to achieve global case sales for the full year of 3,391,000, up 3% on last year.
Based on the prevailing exchange rates, the Group forecasts a 2021 Operating Profit result of $67.0
million, up on last year’s performance by 10%.
JIM DELEGAT
EXECUTIVE CHAIRMAN
Notes:
1. EBIT means earnings before interest and tax.
2. NPAT means net profit after tax.
3. EBITDA means earnings before interest, tax, depreciation and amortisation.
NZ$ millions
Revenue 172.8 4.9 177.7 156.7 2.4 159.1
Cost of Sales (82.0) (10.3) (92.3) (74.1) (8.7) (82.8)
Gross Profit 90.8 (5.4) 85.4 82.6 (6.3) 76.3
Operating Expenses (26.3) – (26.3) (29.1) – (29.1)
EBIT
1
64.5 (5.4) 59.1 53.5 (6.3) 47.2
Interest and Tax (21.4) 1.5 (19.9) (19.1) 1.8 (17.3)
NPAT
2
43.1 (3.9) 39.2 34.4 (4.5) 29.9
EBIT
1
64.5 (5.4) 59.1 53.5 (6.3) 47.2
Depreciation 11.6 – 11.6 10.7 – 10.7
EBITDA
3
76.1 (5.4) 70.7 64.2 (6.3) 57.9
Dec 2020Dec 2019
OperatingFair Value
Adjustment
ReportedOperatingFair Value
Adjustment
Reported

DELEGAT INTERIM REPORT 2021
|
EXECUTIVE CHAIRMAN’S REPORT
5
Table 4
Reconciliation of Reporting to
Operating Performance

Statement of Financial Performance
Unaudited
Dec 2020
6 Months
$000
Audited
June 2020
12 Months
$000
Unaudited
Dec 2019
6 Months
$000
Revenue 1 7 7, 6 8 4 304,181 159,076
Profit before finance costs 59,089 95,824 47,224
Finance costs 4,897 10,807 5,675
Profit before income tax 54,192 85,017 41,549
Income tax expense 14,960 20,895 11,695
Profit for the Period attributable to Shareholders of the Parent Company 39,232 64,122 29,854
Earnings Per Share
– Basic and fully diluted earnings per share (cents per share) 38.79 63.41 29.52
The accompanying notes form part of these financial statements
6
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

The accompanying notes form part of these financial statements
Unaudited
Dec 2020
6 Months
$000
Audited
June 2020
12 Months
$000
Unaudited
Dec 2019
6 Months
$000
Profit after income tax 39,232 64,122 29,854
Other comprehensive income that may
subsequently be classified to the profit and loss:
– Translation of foreign subsidiaries (2,304) 1,497 (157 )
– Net gain/(loss) on hedge of a net investment 140 (722) 169
– Income tax relating to components
of other comprehensive income (39) 202 (47)
Total comprehensive income for the period, net of tax 37,029 65,099 29,819
Comprehensive income attributable to Shareholders of the Parent Company 3 7, 0 2 9 65,099 29,819
Statement of Other Comprehensive Income
7
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

The accompanying notes form part of these financial statements
Statement of Changes in Equity
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2020 49,815 (2,604) 357,369 404,580
Changes in equity for the period ended 31 December 2020
Other comprehensive income
– Translation of foreign subsidiaries – (2,304) – (2,304)
– Net gain on hedge of a net investment – 140 – 140
– Income tax relating to components of other comprehensive income – (39) – (39)
Total other comprehensive income – (2,203) – (2,203)
– Net profit for the period – – 39,232 39,232
Total comprehensive income for the period – (2,203) 39,232 3 7, 0 2 9
Equity Transactions
– Dividends paid to shareholders – – (17,217) (17,217)
Unaudited balance at 31 December 2020 49,815 (4,807) 379,384 424,392
FOR THE PERIOD ENDED 31 DECEMBER 2020 (UNAUDITED)
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2019 49,815 (3,581) 310,462 356,696
Changes in equity for the year ended 30 June 2020
Other comprehensive income
– Translation of foreign subsidiaries – 1,497 – 1,497
– Net loss on hedge of a net investment – (722) – (722)
– Income tax relating to components of other comprehensive income – 202 – 202
Total other comprehensive income – 977 – 977
– Net profit for the year – – 64,122 6 4,122
Total comprehensive income for the year – 977 64,122 65,099
Equity Transactions
– Dividends paid to shareholders – – (17,215) ( 1 7, 2 1 5 )
Audited balance at 30 June 2020 49,815 (2,604) 357,369 404,580
FOR THE YEAR ENDED 30 JUNE 2020 (AUDITED)
8
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Statement of Changes in Equity continued
The accompanying notes form part of these financial statements
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2019 49,815 (3,581) 310,462 356,696
Changes in equity for the period ended 31 December 2019
Other comprehensive income
– Translation of foreign subsidiaries – (157) – (157)
– Net gain on hedge of a net investment – 169 – 169
– Income tax relating to components of other comprehensive income – (47) – (47)
Total other comprehensive income – (35) – (35)
– Net profit for the period – – 29,854 29,854
Total comprehensive income for the period – (35) 29,854 29,819
Equity Transactions
– Dividends paid to shareholders – – (17,215) ( 1 7, 2 1 5 )
Unaudited balance at 31 December 2019 49,815 (3,616) 323,101 369,300
FOR THE PERIOD ENDED 31 DECEMBER 2019 (UNAUDITED)
9
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Unaudited
Dec 2020
$000
Audited
June 2020
$000
Unaudited
Dec 2019
$000
Equity
Share capital 49,815 49,815 49,815
Foreign currency translation reserve (4,807) (2,604) (3,616)
Retained earnings 379,384 357,369 323,101
Total Equity 424,392 404,580 369,300
Liabilities
Current Liabilities
Trade payables and accruals 2 7, 5 7 3 27,879 26,300
Derivative financial instruments 4,432 4,649 3,103
Income tax payable 3,14 4 9,674 980
Lease liability 4,975 4,538 4,589
4 0,124 46,740 34,972
Non-Current Liabilities
Deferred tax liability 33,343 28,456 33,948
Derivative financial instruments 3,616 5,900 4,782
Interest-bearing loans and borrowings (secured) 265,739 254,296 275,771
Lease liability 95,581 79,524 80,299
398,279 368,176 394,8 0 0
Total Liabilities 438,403 414,916 429,772
Total Equity and Liabilities 862,795 819,496 799,072

Statement of Financial Position
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
AS AT 31 DECEMBER 2020
10

The accompanying notes form part of these financial statements
Unaudited
Dec 2020
$000
Audited
June 2020
$000
Unaudited
Dec 2019
$000
Assets
Current Assets
Cash and cash equivalents 11,679 14,755 7,968
Trade and other receivables 55,839 41,788 52,613
Derivative financial instruments 6,058 3,618 2,098
Inventories 144,440 157,628 142,888
218,016 217,789 205,567
Non-Current Assets
Property, plant and equipment 565,648 537,70 8 529,127
Right-of-use assets 73,580 58,494 59,452
Intangible assets 5,487 5,436 4,926
Derivative financial instruments 64 69 –
644,779 601,707 593,505
Total Assets 862,795 819,496 799,072
For, and on behalf of, the Board, who authorised the issue of the financial statements on 24 February 2021.
JN Delegat, Executive Chairman JA Freeman, Managing Director
Statement of Financial Position continued
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
AS AT 31 DECEMBER 2020
11

Unaudited
Dec 2020
6 Months
$000
Audited
June 2020
12 Months
$000
Unaudited
Dec 2019
6 Months
$000
Operating Activities
Cash was provided from
Receipts from customers 16 0,184 300,923 147,049
Net GST received 688 307 1,142
160,872 301,230 148,191
Cash was applied to
Payments to suppliers and employees 96,976 189,173 9 6, 5 49
Net interest paid 4,344 10,037 4,227
Net income tax paid 16,653 17,707 11,945
1 1 7, 9 7 3 216,917 112,721
Net Cash Inflows from Operating Activities 42,899 84,313 35,470

Investing Activities
Cash was provided from
Proceeds from sale of property, plant and equipment 45 45 24
Dividends received 1 1 1
46 46 25
Cash was applied to
Purchase of property, plant and equipment 36,304 27,176 11, 537
Purchase of intangible assets 494 424 464
Capitalised interest paid 688 1,460 733
37,486 29,060 12,734
Net Cash Outflows from Investing Activities (37,440) (29,014) (12,70 9)

Statement of Cash Flows
The accompanying notes form part of these financial statements
12
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Unaudited
Dec 2020
6 Months
$000
Audited
June 2020
12 Months
$000
Unaudited
Dec 2019
6 Months
$000
Financing Activities
Cash was provided from
Proceeds from borrowings 21,290 10,290 8,270
21,290 10,290 8,270
Cash was applied to
Dividends paid to shareholders 1 7, 2 0 2 1 7, 2 0 4 1 7, 2 0 2
Borrowing facility fees – 989 989
Repayment of borrowings 9,712 33,826 8,293
Repayment of lease liability 2,548 4,573 2,263
29,462 56,592 28,747
Net Cash Outflows from Financing Activities (8,172) (46,302) (20,477)

Net (decrease)/increase in Cash Held (2,713) 8,997 2,284
Cash and cash equivalents at beginning of the year 14,755 5,647 5,647
Effect of exchange rate changes on
foreign currency balances (363) 111 37
Cash and Cash Equivalents at End of the Period 11,679 14,755 7,968

Statement of Cash Flows continued
The accompanying notes form part of these financial statements
13
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Unaudited
Dec 2020
6 Months
$000
Audited
June 2020
12 Months
$000
Unaudited
Dec 2019
6 Months
$000
Reconciliation of Profit for the Period with
Cash Flows from Operating Activities:
Reported profit after tax 39,232 64,122 29,854
Add/(deduct) items not involving cash flows
Depreciation expense 11,631 21,629 10,689
Other non-cash items (802) 1, 569 (6)
Net loss on disposal of assets – (71) (73)
Movement in derivative financial instruments (4,936) (1,331) (2,4 0 6)
Movement in deferred tax liability 4,887 (232) 5,260
10,780 21, 56 4 13,4 6 4

Movement in working capital balances are as follows:
Trade payables and accruals (306) (4,432) (6,011)
Trade and other receivables (14,051) (1,804) (12,629)
Inventories 13,188 252 14,992
Income tax payable (6,530) 3,229 (5,465)

Add items classified as investing
and financing activities
Capital purchases included
within trade payables and inventories 586 393 276
Borrowing facility fees – 989 989
( 7, 1 1 3 ) (1,373) (7,848)
Net Cash Inflows from Operating Activities 42,899 84,313 35,470

Reconciliation of movement in Net Debt:
Opening balance at beginning of the year 239,541 270,342 270,342
Per statement of cash flows:
– Proceeds from/(repayments of) borrowings 11, 578 (23,536) (23)
– Net decrease/(increase) in cash held 2,713 (8,997) (2,284)
Foreign exchange movement 67 1,413 (391)
Other non-cash movements 161 319 159
Closing balance at end of the Period 254,060 239,541 267,803
The accompanying notes form part of these financial statements
Statement of Cash Flows continued
14
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

1. General Information
Reporting Entity
The financial statements presented are those of Delegat Group Limited and its subsidiaries (the Group). Delegat Group
Limited is a company limited by shares, incorporated and domiciled in New Zealand and registered under the Companies
Act 1993. The Parent shares are publicly traded on the New Zealand Stock Exchange.
The financial statements for the Group for the six months ended 31 December 2020 were authorised for issue in
accordance with a resolution of the Directors on 24 February 2021.
Basis of Preparation
The interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice in
New Zealand (NZ GAAP), the requirements of the Financial Markets Conduct Act 2013, and NZ IAS 34: Interim Financial
Reporting. Accounting policies applied in these interim financial statements comply with New Zealand equivalents to
International Financial Reporting Standards, and other applicable Financial Reporting Standards (NZ IFRS) as applicable
to the Group as a profit-oriented entity.
The interim financial statements are presented in New Zealand Dollars, rounded to the nearest thousand. They are
prepared on a historical cost basis except for derivative financial instruments and biological produce which have been
measured at fair value.
The preparation of the interim financial statements in conformity with NZ IAS 34 requires the Group to make judgements,
estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstances. Actual results may vary from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised if the revision affects only that period, or in the period of revision and future
periods if the revision affects both current and future periods.
Derivative Financial Instruments
The Group uses derivative financial instruments such as forward currency contracts and options to economically hedge
its risk associated with foreign currency and interest rate swaps to manage interest rate risk. Such financial instruments
are initially recognised at fair value on the date on which a derivative contract is entered into, and are subsequently
remeasured to fair value at balance date. In estimating the fair value of the derivative financial instruments the Group
uses level 2 inputs of the fair value measurement hierarchy. The Group’s derivative financial instruments fall into level
2 of the fair value measurement hierarchy because their fair value is determined using inputs, other than quoted prices
included in level 1, that are observable for the asset or liability, either directly as prices or indirectly (derived from prices).
The fair values are derived through valuation techniques that maximise the use of observable market data where it is
available and rely as little as possible on entity specific estimates.
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year. Refer to the published financial
statements for the year ended 30 June 2020 for a complete listing of the Group accounting policies.

Notes to the Financial Statements
15
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

2. Segmental Reporting
The Group reviews its operational performance based upon the management and the geographic areas in which their
customers are based. Financial information which is available to management in order to assess segment performance
and investment opportunities is presented on the same basis. In accordance with NZ IFRS 8: Operating Segments this
forms the basis of presentation for Segment Reporting and is the format adopted below:
- Delegat Limited (Delegat) is party to vineyard leases and has interests in freehold land and winery infrastructure which
allows the company to grow, harvest and make finished wine to be marketed, distributed and sold into the Super
Premium wine markets. Delegat sells and markets its product through a combination of subsidiary companies based
overseas or to customers and distributors directly in the New Zealand, Canadian, Asian and Pacific Island markets.
Delegat Australia Pty Limited, Delegat Europe Limited and Delegat USA, Inc. act as distributors and assist in the
marketing of product in their respective geographic regions. Wines are sold all year round to all regions and the Group
considers there is no significant variation in revenues throughout the year.
The Group implements appropriate transfer pricing regimes within the operating segments on an arm’s length basis in a
manner similar to transactions with third parties.
Management monitors the operating results of its business units separately for the purpose of making resource allocations
and performance assessments. Segment performance is evaluated based on operating profit or loss, which may be
measured differently from operating profit or loss in the consolidated financial statements as segment reporting is based
upon internal management reports. The main differences are a result of some deferred tax balances being recognised
upon consolidation not being allocated to individual subsidiaries. Also intercompany stock margin eliminations are
managed on a group basis and are not allocated to operating segments.
Notes to the Financial Statements continued
For the 6 months
ended
31 December 2020
Delegat
Limited

$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.

$000
Other
Segments
10

$000
Eliminations
and
Adjustments
11
$000
6 months
ended

31 December
2020
$000
Operating income
External sales
2,8
38,928 30,157 60,914 80,936 5,381 (44,253) 172,063
Internal sales 153,126 – – – 1,698 (154,824) –
Unrealised foreign
exchange gains/(losses) 423 – 51 – (7) 199 666
Fair value gain on
derivative financial instruments 4,936 – – – – – 4,936
Dividend revenue 3,843 – – – 10,552 (14,377) 18
Interest revenue – – – – 1 – 1
Total segment revenues
1
201,256 30,157 60,965 80,936 17,625 (213,255) 1 7 7, 6 8 4
Operating expenses
Interest expense
3
4,453 24 1 42 377 – 4,897
Depreciation
4
10,027 302 90 255 957 – 11,631
Income tax expense
5
13,209 267 519 481 83 401 14,960

Segment profit/(loss) 37,424 614 2,224 1,501 10,815 (13,346) 39,232
Assets
Segment assets
6
804,901 19,550 26,668 34,142 79,840 (102,306) 862,795
Capital expenditure
7
36,508 15 – – 372 – 36,895

Segment liabilities 406,602 13,899 17,785 18,966 39,647 (58,496) 438,403

16
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

2. Segmental Reporting (continued)
Notes to the Financial Statements continued
For the 6 months
ended
31 December 2019
Delegat
Limited

$000
Delegat
Australia
Pty Ltd
$000
Delegat
Europe
Limited
$000
Delegat
USA, Inc.

$000
Other
Segments
10

$000
Eliminations
and
Adjustments
11
$000
6 months
ended

31 December
2019
$000
Operating income
External sales
2,9
33,281 38,285 53,777 71,009 3,346 (43,043) 156,655
Internal sales 140,307 – – – 2,500 (142,807) –
Fair value gain on
derivative financial instruments 2,407 – – – – – 2,407
Dividend revenue 2 – – – 8 – 10
Interest revenue 3 1 – – – – 4
Total segment revenues
1
176,000 38,286 53,777 71,009 5,854 (185,850) 159,076
Operating expenses
Interest expense
3
5,040 32 3 54 546 – 5,675
Depreciation
4
9,073 294 90 271 961 – 10,689
Income tax expense
5
10,057 339 461 366 54 418 11,695
Segment profit 24,963 778 1,959 1,000 78 1,076 29,854

Assets
Segment assets
6
736,022 24,651 26,519 32,794 90,981 (111,895) 799,072
Capital expenditure
7
11,925 258 3 3 263 – 12,452
Segment liabilities 405,876 9,920 17,307 19,567 45,129 (68,027) 429,772

1. Intersegment revenues are eliminated on consolidation. Intercompany profit margins are also eliminated.
2. External sales revenue includes various payments to customers for volume discounts, rebates and other promotional support. For volume discounts,
rebates and other promotional support not invoiced at 30 June 2020 the Group recognised accruals of $22,390,000 (30 June 2019: $22,712,000).
During the six months ended 31 December 2020 $572,000 of these accruals have been released (December 2019: $614,000).
3. Interest expense is net of any interest capitalised to long-term assets and inventory. During the period $688,000 (December 2019: $733,000) was
capitalised to long-term assets. During the period $2,619,000 (December 2019: $2,732,000) was capitalised to inventory.
4. Depreciation expense presented above is gross of $9,467,000 (December 2019: $8,988,000), which has been included within inventory.
5. Segment income tax expense does not include the deferred tax impacts of temporary differences arising from intercompany stock margin
eliminations or fair value adjustments resulting from the purchase of subsidiary companies as these are managed on a group level.
6. Segment assets include the value of investments and loan balances for subsidiaries which reside in Delegat Limited however do not include the
effects of stock margin eliminations for stock on hand in subsidiaries.
7. Capital expenditure consists of additions of property, plant and equipment inclusive of capitalised interest. Capital expenditure is included within
each of the reported segment assets noted above.
8. For the six months ended 31 December 2020 Delegat USA, Inc. had a single customer which comprised 10% or more of Group sales amounting to
$40,171,000.
9. For the six months ended 31 December 2019 Delegat USA, Inc. had a single customer which comprised 10% or more of Group sales amounting to
$34,523,000.
10. Other segments’ assets include non-current assets of Barossa Valley Estate Pty Limited of $47,730,000 (December 2019: $47,579,000) which are
located in Australia.
11. The eliminations and adjustments of segment profit, assets and liabilities relate to intercompany transactions and balances which are eliminated on
consolidation.
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DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

3. Expenses
Expenses by function have been categorised as follows:
Notes to the Financial Statements continued
Unaudited
Dec 2020
6 Months
$000
Audited
June 2020
12 Months
$000
Unaudited
Dec 2019
6 Months
$000
Cost of sales 92,291 152,251 82,817
Selling, marketing and promotion expenses 18,976 39,884 21,787
Corporate governance expenses 480 941 450
Administration expenses 6,848 15,281 6,489
Unrealised foreign exchange losses – – 309
4. Acquisition and Disposal of Assets
During the six months ended 31 December 2020 the Group incurred total capital expenditure of $36,895,000 (31
December 2019: $12,452,000). During the six months ended 31 December 2020 the Group disposed of property, plant
and equipment with a net book value of $44,000 (31 December 2019: $13,000).
5. Capital Commitments
The estimated capital expenditure contracted for at 31 December 2020 but not provided for is $21,516,000 (31 December
2019: $14,0 61,0 0 0).
18
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Directory
Directors
Jakov Nikola Delegat
Rosemari Suzan Delegat
Graeme Stuart Lord
Alan Trevor Jackson
Phillipa Margaret Muir
John Anthony Freeman
Registered Office
Level 1, 10 Viaduct Harbour Avenue
Auckland 1010
PO Box 91681
Victoria Street West
Auckland 1142
Solicitors
Heimsath Alexander
Level 1, Shed 22, Prince’s Wharf
147 Quay Street
PO Box 105884
Auckland 1143
Auditors
Deloitte
Deloitte Centre
Levels 12–18, 80 Queen Street
Auckland 1010
Private Bag 115033
Shortland Street
Auckland 1140
Share Registrar
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
Managing your shareholding online:
To change your address, update your payment
instructions and to view your registered details
including transactions please visit
www.investorcentre.com/NZ
General enquiries can be directed to:
enquiry@computershare.co.nz
Private Bag 92119
Auckland 1142
Telephone:
+64 9 488 8777
Facsimile:
+64 9 488 8787
Please assist our registry by quoting your CSN or
shareholder number.
19
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2020