Delegat Group Limited — Capital/Financing Update 2018

Jul 16, 2018

DELEGAT GROUP LIMITED – MARKET UPDATE

2018 FULL YEAR GUIDANCE UPDATE

The Group advises a record unaudited Operating Net Profit after Tax for the year ended 30 June 2018 of $44.9 million, up 17% on the previous year of $38.5 million. This was achieved on record global case sales of 2,736,000 cases for the year, up 3% on the previous year. The profit improvement of $6.4 million compared to last year is underpinned by record global case sales, lower cost of sales per case, higher yielding 2016 and 2017 vintages and lower financing costs.

The Group forecasts positive IFRS fair value adjustments for the year to be $0.9 million which is expected to result in an IFRS Reported Net Profit after Tax of $45.8 million, up 13% on the previous year. The forecast IFRS fair value adjustments are in relation to fair value movements on biological produce (grapes) and derivative instruments.

The Group will announce the audited full year results in late August 2018.

2019 - 2021 GLOBAL CASE SALES UPDATE

The Group is providing a three year global case sales forecast.

Group Outlook Case Sales	2018	2019	2020	2021
	Actual	Forecast	Projection	Projection
Total Cases	2,736	2,945	3,168	3,377

The Group has reforecasted global case sales to increase by 8% in FY19 and will achieve a three year compound average growth rate of 7%. The Group remains focused on achieving its strategic goal of Super Premium wine category leadership in all varietals across all markets.

ENDS

For further information please contact:

Murray Annabell Chief Financial Officer Delegat Group Limited Telephone 64 9 359 7310 or 64 21 358 554 Email: murray.annabell@delegat.com