DB Half Year Financial Results

DB Group Limited

Half Year Financial Results for Six Months Ended 31 March 2001

Page 2 Table Summary

Page 3 & 4 Key Points

Page 5 & 6 Media Statement

Brian Blake

Group Managing Director

DB Group

TABLE SUMMARY

DB Group Limited Half Year Financial Results for six months

ended 31 March 2001

KEY POINTS

DB Group Limited Half Year Financial Results for six months ended

31 March 2001.

DB Breweries

- DB Breweries’ volume share of the total beer market continued to increase (up 1.1%).

- Net sales revenue up 3% on the previous year despite the absence of one-off sales impacts such as the 2000 supermarket load, Millennium celebrations, and the America’s Cup.

- Cost increases arising from inflationary pressures and the lower value of the New Zealand dollar impacted unfavourably on operating margin.

Corporate Overheads

- Restructuring of the DB Group corporate office following the discontinuation of liquor and wine operations has reduced corporate overhead costs.

Net interest received

- Reduction in debt levels and the receipt of cash from the sale of Corbans Wines increased interest income. The settlement of Corbans Wines resulted in the receipt of $2.1m interest earned prior to distribution to shareholders.

Gain on the sale of Corbans Wines

- The sale of Corbans Wines to Montana in October 2000 resulted in a gain of $34m. All proceeds from the sale of Corbans Wines were distributed to shareholders in December 2000.

KEY COMPARISONS

DB Group Limited Half Year Financial Results for six months ended

31 March 2001.

OTHER INFORMATION

Shareholders' Equity

- At 31 March 2001 Shareholders' equity was $123.7 after the capital repayment to shareholders of $151.3 million (2000 $229.2 million).

Surplus Funds / Borrowings

- At 31 March 2001 the company had net cash funds of $12.1 million (2000 net borrowings $2.5 million).

Dividend

- A fully paid interim dividend of 11.5 cents per share and a supplementary dividend to non-resident shareholders of 2.029412 cents per share. These dividends will be paid on 20 June to shareholders on the register at 5.00pm on 8 June 2001. All proceeds from the sale of Corbans Wines were returned to shareholders in December 2000.

23 MAY 2001

MEDIA STATEMENT

ISSUED BY:

Brian Blake

Group Managing Director

DB Group

DB GROUP HALF YEAR RESULT CONTINUES

STRONG OPERATING PERFORMANCE

Brian Blake, Managing Director of DB Group today announced that earnings before interest and tax for the six months ended 31 March, 2001 were $20.4 million.

Mr Blake said that the financial and operating performance for the first half of 2000/2001 has been most satisfactory. The result no longer includes the contributions of Allied Liquor, NZ Liquor or Corbans Wines.

“This follows a strategic transformation that has had a profound impact on the size and shape of the Group. With the divestment of non-core businesses - Corbans, Allied and NZ Liquor - DB is now 100% focused on becoming New Zealand’s most valuable brewing company.

“The first six months has seen a very solid contribution from DB Breweries and demonstrates the success of the company’s focus on building the value of its key brands through well positioned advertising, promotion and sponsorship. Whilst the overall beer market has declined in volume DB Breweries has slightly increased its sales to achieve a market share gain of 1.1%. Sales revenue has increased from $151.6 million in 2000 to $156.5 million in 2001. This is very significant given this year’s sales result was achieved without the one-off impacts of the initial load into supermarkets, the Millennium celebrations, or the America’s Cup.

“DB Breweries’ EBIT was marginally lower than last year given the continuing cost pressure caused by inflation and the lower value of the New Zealand dollar.”

DB Group’s franchise business, Liquorland, now operates as a stand-alone franchise business for 12 months with 54 franchisees and 85 stores throughout New Zealand.

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“The franchise is performing well in a very competitive market. Liquorland management is firmly focused on assisting franchisees’ earnings with the development and implementation of effective national promotional programmes and a robust franchise system to support all stores.

Mr Blake concluded the announcement by saying “DB is cautiously optimistic that it will meet its operational and financial targets for the year. The challenge will be the Group’s ability to manage costs with the continuing pressure caused primarily by inflation and New Zealand’s fluctuating exchange rate. We will continue to focus on building the value of our premium and mainstream brands, improving operational effectiveness and developing the skills and professionalism of our people.”

ENDS

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