The New Zealand Wine Company

Foley Family Wines Reports a Year of Progress

Foley Family Wines Limited (FFW) announces a Profit for the period after income tax of $1,246,000 on revenue of $37,159,000 for the Group for the year ended 30 June 2015. Performance Highlights • Sales revenue of $37.2m – up 20% • Operating Profit before revaluations and tax $3.5m – up 194% • Operating Cash Flow $4.9m – up 321% • Final dividend 2 cents per share • Wines awarded 108 medals, of which 2 were trophies and 14 were gold. Chief Executive Officer of FFW, Mr Mark Turnbull, said “The 2015 year has been one of progress with FFW recording an operating profit before revaluations and income tax (“operating earnings”) of $3,534,000, compared with $1,201,000 for the previous financial year. FFW benefited from a much stronger second half performance recording operating earnings of $2,873,000, compared with the half-year result of $661,000. The directors believe the second half reflects the genuine progress that FFW is making and is a good foundation for the coming year.” “FFW's purpose is to make great wine that people love to drink. We’ve had another great year in terms of accolades received in wine shows around the world. It has been another year of producing world-class wine.” The Directors remain cautiously optimistic about the continuation of improved operating results with momentum being gained in major markets, new routes to market being explored and developed, and recent exchange rates movements clearly benefiting New Zealand exporters, however, as noted at the ASM, customers are expecting some of the upside in terms of pricing and/or promotional support. FFW will also benefit from investment in infrastructure made this year. “We were delighted to announce that Alastair Mailing MW joined FFW in July in the new role of Chief Group Winemaker| Head of Viticulture. Alastair joins FFW after 12 years at Villa Maria in the role of General Manager winemaking and viticulture. One of Alastair’s key responsibilities is to review efficiencies within the business. The cost of goods is the major cost in FFW's business, so any gains will flow directly to the bottom line.” said Mr Turnbull. The Directors have resolved to pay a final fully imputed dividend of 2 cents per share. The policy of the Board is to evaluate present and projected cash flows, sustainable operating earnings and, if prudent, declare a dividend subject to current and future capital and acquisition expenditure requirements. The Annual Shareholders’ Meeting of FFW will be held in Auckland this year. Further details will be provided in due course. Authorised for public release. For further information please contact: Mark Turnbull CEO, Foley Family Wines Limited PO Box 67, Renwick, 7243, Marlborough Tel: +64 21 714 885 Email: mark@ffw.co.nz