Delegat Group Limited — Interim / Quarterly Report 2021

Feb 23, 2021

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31 DECEMBER 2020 HALF-YEAR RESULTS

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RECORD OPERATING NPAT

“Delegat Group has achieved strong global sales growth to deliver record performance for the six months to 31 December 2020.”

JIM DELEGAT EXECUTIVE CHAIRMAN

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PERFORMANCE HIGHLIGHTS

Record global case sales of 1,862,000, 7% higher than last year 17% sales growth in key North America region Record Operating NPAT of $43.1 million, 25% higher than last year Record cashflows from operations of $42.9 million, 21% higher than last year

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CASE SALES AND FX

Case Sales (000's)	Dec 2020 Dec 2019 % Change vs 2019
UK, Ireland and Europe North America (USA and Canada) Australia, NZ and Asia Pacific Total Cases Foreign Currency Rates	675 601 12% 843 722 17% 344 410 -16%
	1,862 1,733 7%
	Dec 2020 Dec 2019 % Change vs 2019
GB£ AU$ US$ CA$	0.5058 0.5054 0% 0.9344 0.9393 1% 0.6691 0.6519 -3% 0.8776 0.8651 -1%

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SALES REVENUE GROWTH ANALYSIS

NZ$ millions	Dec 2020 Actual	Dec 2019 Actual	% Change vs 2019
Operating Revenue	168.0	154.1	9%
Revenue movements breakdown:
Volume			7%
Value			2%
Foreign Exchange		-1%
Country/Product Mix		3%

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OPERATING PERFORMANCE

NZ$ millions	Dec 2020 Dec 2019 % Change vs 2019
Sales Revenue Operating Revenue Operating Gross Profit Operating Gross Margin Expenses (excl Promotion and Marketing) Promotion and Marketing Operating EBIT Operating EBIT % of Revenue Interest and Tax Operating NPAT Operating NPAT % of Revenue Operating EBITDA Operating EBITDA % of Revenue	168.0 154.1 9% 172.1 156.7 10%
	90.1 82.6 9% 52% 53% (21.1) (24.3) 13% (4.5) (4.8) 6%
	64.5 53.5 21% 37% 34% (21.4) (19.1) -12%
	43.1 34.4 25% 25% 22% 76.1 64.2 19% 44% 41%

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OPERATING PROFIT MOVEMENT – LAST YEAR

NZ $millions

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IMPACT OF ‘FAIR VALUE’ ADJUSTMENTS

NZ$ millions	Dec 2020 Dec 2019 % Change vs 2019
Operating NPAT Operating NPAT % of Sales Biological Produce (Grapes)1 Derivative Instruments Total Fair Value Items Less: Tax Fair Value Items after Tax Reported NPAT	43.1 34.4 25% 20% 17% (10.3) (8.7) -18% 4.9 2.4 105%
	(5.4) (6.3) 15% 1.5 1.8 -15%
	(3.9) (4.5) 15%
	39.2 29.9 31%

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.

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REPORTED PROFIT MOVEMENT – LAST YEAR

NZ $millions

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BALANCE SHEET SUMMARY

NZ$ millions	Dec 2020 Dec 2019 % Change vs 2019
Assets Current Assets Fixed Assets Total Assets Liabilities Current Liabilities Lease Liability Deferred Tax Liabilities Senior Debt Facilities Other Non-current Liabilities Total Liabilities Equity Shareholders' Equity Total Equity Total Liabilities and Equity Net Debt	218.0 205.6 6% 644.8 593.5 9%
	862.8 799.1 8% 40.1 35.0 15% 95.6 80.3 19% 33.3 33.9 -2% 265.8 275.8 -4% 3.6 4.8 -24%
	438.4 429.8 2% 424.4 369.3 15%
	424.4 369.3 15% 862.8 799.1 8% 254.1 267.8 -5%

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NET DEBT MOVEMENT – JUNE 20 TO DEC 20

NZ $millions

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NET DEBT OVERVIEW

NZ$ millions	Dec 2020	Dec 2019	% Change vs 2019
Funding
Operating Cash Flow	42.9	35.5	21%
Net Debt	254.1	267.8	-5%
Key Ratios
Interest Cover	13.16	9.39	40%
Equity / (Equity + Net Debt) %	62.5%	58.0%	8%
Senior Debt Ratio	2.07	2.60	20%

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FULL YEAR OUTLOOK

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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 prevailing exchange rates, the Group forecasts a 2021 Operating Profit result of $67 million, up on last year’s performance by 10%.

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Thank you