DGL- Interim Results to 31 December 2022

Results for announcement to the market
Name of issuer Delegat Group Limited
Reporting Period 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations
$209,158
15%
Total Revenue $209,158 15%
Operating Profit from ordinary activities after tax (Operating
NPAT)
1

$40,162 2%
Operating Profit from ordinary activities before interest, tax
and depreciation (Operating EBITDA)
1

$74,170 5%
Reported Profit from continuing operations $40,728 11%
Total net profit $40,728 11%
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 $5.06 $4.59
A brief explanation of any of the figures above necessary to
enable the figures to be understood
Refer to the 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

24/02/2023

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.

Delegat Group Limited
Interim Report 2023
YEARS OF VISIONARY
WINEMAKING

Contents
2
Chair’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.
Chair’s Report 2023
On behalf of the Board of Directors of Delegat Group Limited, I am pleased to present its operating and
financial results for the six months ended 31 December 2022.
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.
Operating Performance
An Operating NPAT of $40.2 million was generated compared to $39.5 million for the same period in
the previous year. Operating EBIT of $62.2 million is $2.6 million higher than the same period last year
(refer to table 1).
DELEGAT INTERIM REPORT 2023
|
CHAIR’S REPORT
2
Dec 2022 Dec 2021 % change
NZ$ millions vs 2021
Operating Revenue
1
198.8 178.7 11%
Operating Gross Profit
2
95.6 86.8 10%
Operating Gross Margin 48% 49%
Operating Expenses
3
(33.4) (27.2) -23%
Operating EBIT
4
62.2 59.6 4%
Operating EBIT % of Revenue 31% 33%
Interest and Tax (22.0) (20.1) -9%
Operating NPAT
4
40.2 39.5 2%
Operating NPAT % of Revenue 20% 22%
Operating EBITDA
4
74.2 71.0 5%
Operating EBITDA % of Revenue 37% 40%
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

Delegat achieved Operating Revenue of $198.8 million on record global case sales of 1,970,000 in the six
month period. Revenue is up $20.1 million on the same period last year primarily due to the favourable
impact of a 4% increase in global case sales, price increases implemented in the United Kingdom, Ireland
and New Zealand, and a favourable impact of foreign exchange.
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. Operating expenses (before NZ IFRS
adjustments) at $33.4 million are $6.2 million higher compared to the same period in the previous
year, primarily associated with the unfavourable impact of exchange on overseas in-market costs, the
resumption of normal sales and marketing activities post Covid-19 disruptions, headcount increases and
software as a service implementation costs for the Group’s new Enterprise Reporting System.
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 has resulted in an adjustment
of $9.6 million for the period (December 2021: adjustment of $7.1 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 $10.4 million (December 2021: write-up of $3.2 million).
DELEGAT INTERIM REPORT 2023
|
CHAIR’S REPORT
3
Dec 2022 Dec 2021 % change
Case Sales (000s) vs 2021
UK, Ireland and Europe 559 626 -11%
North America (USA and Canada) 1,028 874 18%
Australia, NZ and Asia Pacific 383 393 -3%
Total Cases 1,970 1,893 4%

Foreign Currency Rates
GB£ 0.5200 0.5062 -3%
AU$ 0.9300 0.9472 2%
US$ 0.6301 0.6888 9%
CA$ 0.8311 0.8746 5%
Table 2
Case Sales and Foreign Currency

Reconciliation of Reporting to Operating Performance
Accounting for all fair value adjustments under NZ IFRS, the Group’s reported unaudited financial
performance for the six months ended 31 December 2022 is reconciled to Operating Profit as detailed
in table 4.
Cash Flow
The Group generated Cash Flows from Operations of $35.3 million in the current half-year, which is
an increase of $15.1 million on the same period last year. The increase is due to strong cash collections
from customers, which has more than offset higher payments to suppliers. A total of $31.7 million was
paid for additional property, plant and equipment during the period, including vineyard developments
in New Zealand, and development of the Hawke’s Bay and Marlborough wineries, which will provide
earnings growth into the years ahead. The Group distributed $20.2 million to shareholders in dividends.
Net proceeds from borrowings of $62.4 million were drawn down during the six month period.
The Group has a $373 million syndicated Senior debt facility, having secured an additional $40 million
facility in July 2022 to finance the purchase of the previously leased Dashwood vineyard, located in
Marlborough’s Awatere Valley. 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
2022 amounted to $305.8 million, an increase of $38.8 million compared with the last half year and well
within the Group’s long term bank debt facilities. The increase in net debt is entirely attributed to the new
facility for the vineyard purchase.
Impact of Fair Value Adjustments
Table 3
Dec 2022 Dec 2021 % change
NZ$ millions vs 2021
Operating NPAT 40.2 39.5 2%
Operating NPAT % of Revenue 20% 22%
NZ IFRS Fair Value Items
Biological Produce (Grapes)
1
(9.6) (7.1) 35%
Derivative Financial Instruments 10.4 3.2 n/m
2
Total Fair Value Items 0.8 (3.9) n/m
2
Taxation of NZ IFRS fair value items (0.3) 1.1 n/m
2
Fair Value Items after Tax 0.5 (2.8) n/m
2
Reported NPAT 40.7 36.7 11%
DELEGAT INTERIM REPORT 2023
|
CHAIR’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.
2. n/m means not meaningful.

Impact of Cyclone Gabrielle
Delegat is fortunate to have not incurred significant damage from Cyclone Gabrielle, the storm which
caused widespread damage across the Hawke’s Bay region in February 2023. The winery and vineyards,
while incurring some surface flooding, have not been significantly affected. More importantly, our
employees and their families in the region are safe and our priority remains supporting their recovery
efforts. The Board would like to acknowledge the Hawke’s Bay team for their collective resilience, team
spirit and positivity.
Looking Forward
The Group is on target to achieve global case sales for the full year of 3,649,000 cases, up 9% on last
year. Based on the prevailing exchange rates, the Group forecasts the 2023 Operating Profit guidance in
the range of $59 million to $62 million.
GRAEME LORD
CHAIR
Notes:
1. EBIT means earnings before interest and tax.
2. NPAT means net profit after tax.
3. EBITDA means earnings before interest, tax, depreciation and amortisation.
NZ$ millions
Revenue 198.8 10.4 209.2 178.7 3.2 181.9
Cost of Sales (103.2) (9.6) (112.8) (91.9) (7.1) (99.0)
Gross Profit 95.6 0.8 96.4 86.8 (3.9) 82.9
Operating Expenses (33.4) – (33.4) (27.2) – (27.2)
EBIT
1
62.2 0.8 63.0 59.6 (3.9) 55.7
Interest and Tax (22.0) (0.3) (22.3) (20.1) 1.1 (19.0)
N PAT
2
40.2 0.5 40.7 39.5 (2.8) 36.7
EBIT
1
62.2 0.8 63.0 59.6 (3.9) 55.7
Depreciation and amortisation 12.0 – 12.0 11.4 – 11.4
EBITDA
3
74.2 0.8 75.0 71.0 (3.9) 67.1
Dec 2022Dec 2021
OperatingFair Value
Adjustment
ReportedOperatingFair Value
Adjustment
Reported

DELEGAT INTERIM REPORT 2023
|
CHAIR’S REPORT
5
Table 4
Reconciliation of Reporting to
Operating Performance

Statement of Financial Performance
Unaudited
Dec 2022
6 Months
$000
Audited
June 2022
12 M o nths
$000
Unaudited
Dec 2021
6 Months
$000
Revenue 209,158 325,566 181,884
Profit before finance costs 62,965 95,566 55,741
Finance costs 6,959 9,412 5,123
Profit before income tax 56,006 86,154 50,618
Income tax expense 15,278 23,140 13,881
Profit for the Period attributable to Shareholders of the Parent Company 40,728 63,014 36,737

Earnings Per Share
– Basic and fully diluted earnings per share (cents per share) 40.27 62.31 36.33
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
6

Unaudited
Dec 2022
6 Months
$000
Audited
June 2022
12 M o nths
$000
Unaudited
Dec 2021
6 Months
$000
Profit after income tax 40,728 63,014 36,737
Other comprehensive income that may
subsequently be classified to the profit and loss:
– Translation of foreign subsidiaries (2,400) 3,552 99
– Net gain/(loss) on hedge of a net investment 1,122 (984) 341
– Income tax relating to components
of other comprehensive income (314) 275 (96)
Total comprehensive income for the period, net of tax 39,136 65,857 37,081

Comprehensive income attributable to Shareholders of the Parent Company 39,136 65,857 37,081

Statement of Other Comprehensive Income
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
7

Statement of Changes in Equity
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2022 49,815 (797) 450,448 499,466
Changes in equity for the period ended 31 December 2022
Other comprehensive income
– Translation of foreign subsidiaries – (2,400) – (2,400)
– Net gain on hedge of a net investment – 1,122 – 1,122
– Income tax relating to components of other comprehensive income – (314) – (314)
Total other comprehensive income – (1,592) – (1,592)
– Net profit for the period – – 40,728 40,728
Total comprehensive income for the period – (1,592) 40,728 39,136
Equity Transactions
– Dividends paid to shareholders – – (20,243) (20,243)
Unaudited balance at 31 December 2022 49,815 (2,389) 470,933 518,359


FOR THE PERIOD ENDED 31 DECEMBER 2022 (UNAUDITED)
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2021 49,815 (3,640) 407,675 453,850
Changes in equity for the year ended 30 June 2022
Other comprehensive income
– Translation of foreign subsidiaries – 3,552 – 3,552
– Net loss on hedge of a net investment – (984) – (984)
– Income tax relating to components of other comprehensive income – 275 – 275
Total other comprehensive income – 2,843 – 2,843
– Net profit for the year – – 63,014 63,014
Total comprehensive income for the year – 2,843 63,014 65,857
Equity Transactions
– Dividends paid to shareholders – – (20,241) (20,241)
Audited balance at 30 June 2022 49,815 (797) 450,448 499,466
FOR THE YEAR ENDED 30 JUNE 2022 (AUDITED)
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
8

Statement of Changes in Equity continued
Share
Capital
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Audited balance at 30 June 2021 49,815 (3,640) 407,675 453,850
Changes in equity for the period ended 31 December 2021
Other comprehensive income
– Translation of foreign subsidiaries – 99 – 99
– Net gain on hedge of a net investment – 341 – 341
– Income tax relating to components of other comprehensive income – (96) – (96)
Total other comprehensive income – 344 – 344
– Net profit for the period – – 36,737 36,737
Total comprehensive income for the period – 344 36,737 3 7, 0 8 1
Equity Transactions
– Dividends paid to shareholders – – (20,241) (20,241)
Unaudited balance at 31 December 2021 49,815 (3,296) 424,171 470,690
FOR THE PERIOD ENDED 31 DECEMBER 2021 (UNAUDITED)
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
9

Unaudited
Dec 2022
$000
Audited
June 2022
$000
Unaudited
Dec 2021
$000
Equity
Share capital 49,815 49,815 49,815
Foreign currency translation reserve (2,389) (797) (3,296)
Retained earnings 470,933 450,4 4 8 424,17 1
Total Equity 518,359 499,466 470,690

Liabilities
Current Liabilities
Trade payables and accruals 40,568 41,436 28,249
Derivative financial instruments 1,178 8,096 1,698
Income tax payable – 6,596 2,336
Lease liability 5,022 44,775 4,927
46,768 100,903 37,210
Non-Current Liabilities
Deferred tax liability 42,219 33,000 35,200
Derivative financial instruments 75 653 104
Interest-bearing loans and borrowings (secured) 313,9 0 4 253,777 271,502
Lease liability 88,652 79,548 93,832
444,850 366,978 400,638
Total Liabilities 491,618 467,881 437,848
Total Equity and Liabilities 1,0 09,977 967,347 908,538

Statement of Financial Position
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
AS AT 31 DECEMBER 2022
10

Unaudited
Dec 2022
$000
Audited
June 2022
$000
Unaudited
Dec 2021
$000
Assets
Current Assets
Cash and cash equivalents 8,134 5,117 4,47 7
Trade and other receivables 64,773 5 4,129 74,3 0 4
Derivative financial instruments 4,809 1,959 73
Income tax receivable 1,931 – –
Inventories 139,956 182,983 115,244
Biological work in progress 51,605 13,704 49,044
271,208 257,892 243,142
Non-Current Assets
Property, plant and equipment 6 5 7, 2 4 8 6 03,118 586,835
Right-of-use assets 71,885 9 6,478 7 1,120
Intangible assets 6,814 7,065 6,725
Derivative financial instruments 2,822 2,794 716
738,769 709,455 665,396
Total Assets 1,009,977 967,347 908,538
For, and on behalf of, the Board who authorised the issue of the financial statements on 24 February 2023.
GS Lord
Chair
Statement of Financial Position continued
The accompanying notes form part of these financial statements
SD Carden
Managing Director
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
AS AT 31 DECEMBER 2022
11

Unaudited
Dec 2022
6 Months
$000
Audited
June 2022
12 Months
$000
Unaudited
Dec 2021
6 Months
$000
Operating Activities
Cash was provided from
Receipts from customers 191,053 315,30 6 150,29 0
Net GST received 688 – 1,681
191,741 315,30 6 151,971
Cash was applied to
Payments to suppliers and employees 138,56 4 216,453 110,418
Net GST paid – 1,329 –
Net interest paid 3,090 8,713 4,989
Net income tax paid 14,828 23,168 16,323
156,482 249,663 131,73 0
Net Cash Inflows from Operating Activities 35,259 65,643 20,241
Investing Activities
Cash was provided from
Proceeds from sale of property, plant and equipment 2 72 53
Dividends received 17 1 1
19 73 54
Cash was applied to
Purchase of property, plant and equipment 30,366 36,462 14,955
Purchase of intangible assets 485 311 301
Capitalised interest paid 843 1,308 745
31,694 38,081 16,0 01
Net Cash Outflows from Investing Activities (31,675) (38,008) (15,947)


Statement of Cash Flows
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
12

Unaudited
Dec 2022
6 Months
$000
Audited
June 2022
12 Months
$000
Unaudited
Dec 2021
6 Months
$000
Financing Activities
Cash was provided from
Proceeds from borrowings 7 7, 0 9 7 312,688 27,483
7 7, 0 9 7 312,688 27,483
Cash was applied to
Dividends paid to shareholders 20,216 20,226 20,225
Borrowing facility fees 72 965 965
Repayment of borrowings 14,725 318,494 12,660
Repayment of lease liability 42,476 5,133 2,500
77,489 344,818 36,350
Net Cash Outflows from Financing Activities (392) (32,130) (8,867)

Net increase/(decrease) in Cash Held 3,192 (4,495) (4,573)
Cash and cash equivalents at beginning of the year 5,117 8,943 8,943
Effect of exchange rate changes on
foreign currency balances (175) 669 107
Cash and Cash Equivalents at End of the Period 8,134 5,117 4,47 7

Statement of Cash Flows continued
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
13

Unaudited
Dec 2022
6 Months
$000
Audited
June 2022
12 M o nths
$000
Unaudited
Dec 2021
6 Months
$000
Reconciliation of Profit for the Period with
Cash Flows from Operating Activities:
Reported profit after tax 40,728 63,014 36,737
Add/(deduct) items not involving cash flows
Depreciation expense 11,99 0 23,443 11,434
Other non-cash items (1,806) 3,240 400
Net loss/(gain) on disposal of assets 97 (16) 2
Movement in derivative financial instruments ( 10, 374) (202) (3,185)
Movement in deferred tax liability 9,219 1,350 3,550
9,126 27,815 12,201
Movement in working capital balances are as follows:

Trade payables and accruals (868) 12, 538 (6 49)
Trade and other receivables (10,644) (10,132) (30,307)
Inventories 43,027 (23,001) 44,738
Biological work in progress (37,901) (1,624) (36,964)
Income tax payable/receivable (8,527) (1,639) (5,899)
Add items classified as investing
and financing activities
Capital purchases included
within trade payables and inventories 318 (1,328) 384
(14,595) (25,186) (28,697)
Net Cash Inflows from Operating Activities 35,259 65,643 20,241

Reconciliation of movement in Net Debt:
Opening balance at beginning of the year 248,660 249,058 249,058
Per statement of cash flows:
– Proceeds from borrowings 62,372 (5,806) 14,823
– Borrowing facility fees (72) (965) (965)
– Net (increase)/decrease in cash held (3,192) 4,495 4,573
Foreign exchange movement (2,129) 1,392 (826)
Other non-cash movements 131 486 362
Closing balance at end of the Period 305,770 248,660 267,025
Statement of Cash Flows continued
The accompanying notes form part of these financial statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
14

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 2022 were authorised for issue in
accordance with a resolution of the Directors on 24 February 2023.
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 2022 for a complete listing of the Group accounting policies.
Notes to the Financial Statements
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
15

Notes to the Financial Statements continued
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.
For the 6 months
ended
31 December 2022
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
2022
$000
Operating income
External sales
2,8
38,164 32,991 54,237 122,124 3,118 (52,514) 198,120
Internal sales 190,527 – – – 2,515 (193,042) –
Unrealised foreign
exchange (losses)/gains (482) – (246) – 1 1,335 608
Fair value gain on
derivative financial instruments 10,374 – – – – – 10, 374
Dividend revenue 17 – – – 86,058 (86,058) 17
Interest revenue 28 3 – – 8 – 39
Total segment revenues
1
238,628 32,994 53,991 122,124 91,700 (330,279) 209,158

Operating expenses
Interest expense
3
6,143 21 5 23 767 – 6,959
Depreciation
4
10,372 310 73 277 958 – 11,99 0
Income tax expense
5
14,018 195 322 1,343 58 (658) 15,278

Segment profit/(loss) 35,924 445 1,365 4,649 86,094 (87,749) 40,728

Assets
Segment assets
6
945,353 15,997 52,177 31,385 131,442 (166,377) 1,0 09,977
Capital expenditure
7
31,126 3 – 33 256 – 31,418

Segment liabilities 507,161 10,579 37,795 5,748 43,015 (112,680) 491,618

DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
16

For the 6 months
ended
31 December 2021
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
2021
$000
Operating income
External sales
2,9
40,920 33,841 58,427 86,858 3,632 (45,709) 1 7 7, 9 6 9
Internal sales 180,735 – – – 3,381 (184,116) –
Unrealised foreign
exchange gains/(losses) 865 – 144 – – (299) 710
Fair value gain on
derivative financial instruments 3,184 – – – – – 3,184
Dividend revenue 1 – – – 1,059 (1,042) 18
Interest revenue – – – – 3 – 3
Total segment revenues
1
225,705 33,841 58,571 86,858 8,075 (231,166) 181,884

Operating expenses
Interest expense
3
4,689 16 5 31 382 – 5,123
Depreciation
4
9,935 285 69 243 902 – 11,434
Income tax expense
5
15,410 301 499 525 (27) (2,827) 13,881

Segment profit/(loss) 39,496 698 2,125 1,615 1,115 (8,312) 36,737

Assets
Segment assets
6
859,594 17,684 42,961 27,540 77,267 (116,508) 908,538
Capital expenditure
7
15,384 – – 6 221 – 15,611

Segment liabilities 397,330 11,930 30,177 8,665 55,187 (65,441) 4 3 7, 8 4 8

Notes to the Financial Statements continued
1. Intersegment revenues are eliminated on consolidation. Intercompany profit margins are also eliminated.
2. External sales revenue includes various payments to customers for volume discounts, rebates and other promotional support. For volume discounts,
rebates and other promotional support not invoiced at 30 June 2022 the Group recognised accruals of $21,458,000 (30 June 2021: $18,105,000).
During the six months ended 31 December 2022 $382,000 of additional expense has been incurred (December 2021: release of $188,000).
3. Interest expense is net of any interest capitalised to long-term assets and inventory. During the period $843,000 (December 2021:$745,000) was
capitalised to long-term assets. During the period $2,285,000 (December 2021: $2,614,000) was capitalised to inventory.
4. Depreciation expense presented above is gross of $10,138,000 (December 2021: $9,624,000), 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 2022 Delegat USA, Inc. had a single customer which comprised 10% or more of Group sales amounting to
$53,487,000.
9. For the six months ended 31 December 2021 Delegat USA, Inc. had a single customer which comprised 10% or more of Group sales amounting to
$40,114,000.
10. Other segments’ assets include non-current assets of Barossa Valley Estate Pty Limited of $45,865,000 (December 2021: $46,583,000) 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.
2. Segmental Reporting (continued)
DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
17

Notes to the Financial Statements continued
3. Expenses
Expenses by function have been categorised as follows:
Unaudited
Dec 2022
6 Months
$000
Audited
June 2022
12 M o nths
$000
Unaudited
Dec 2021
6 Months
$000
Cost of sales 112,749 174,602 98,996
Selling, marketing and promotion expenses 23,350 38,239 19,123
Corporate governance expenses 684 1,040 436
Administration expenses 9,410 16,119 7, 588

4. Acquisition and Disposal of Assets
During the six months ended 31 December 2022 the Group incurred total capital expenditure of $31,418,000 (31
December 2021: $15,611,000). During the six months ended 31 December 2022 the Group disposed of property, plant
and equipment with a net book value of $252,000 (31 December 2021: $55,000).
5. Capital Commitments
The estimated capital expenditure contracted for at 31 December 2022 but not provided for is $44,421,000 (31 December
2021: $28,941,000).

DELEGAT GROUP LIMITED AND SUBSIDIARIES
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FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
18

Directory
Directors
Graeme Stuart Lord
Jakov Nikola Delegat
Rosemari Suzan Delegat
Steven David Carden
Alan Trevor Jackson
Gordon Neil MacLeod
Phillipa Margaret Muir
Registered Office
Level 31, 15 Customs Street West
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.
DELEGAT GROUP LIMITED AND SUBSIDIARIES
|
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
19