DB Group Continues Strong Operating Performance

1 November 2001

FOR IMMEDIATE RELEASE

DB Group Limited
Full Year Financial Results for Twelve Months Ended
30 September 2001

CONTENTS
Table Summary
Key Points
Media Statement

TABLE SUMMARY

DB Group Limited Full Year Financial Results for 12 months
ended 30 September 2001

2001
$m 2000
$m % change

EARNINGS BEFORE INTEREST AND TAX
FROM CONTINUED OPERATIONS

29.8 28.2 6%

EARNINGS BEFORE INTEREST AND TAX FROM DISCONTINUED OPERATIONS
Wine - 9.8
Liquor * 1.2 9.3

Total Earnings before interest and tax
31.0
47.3

Net interest received
4.6
1.0

Operating profit 35.6 48.3

Non recurring items
Gain on the sale of Corbans Wines 34.7 -
Other 0.1 (6.3)
Net profit before tax 70.4 42.0

Taxation
(11.0)
(17.8)
Net profit after tax 59.4 24.2

Minority interests
(1.1)
(1.2)
Consolidated Net Profit 58.3 23.0

* $1.2 million of closure provisions taken in previous years has been reversed in 2001
KEY POINTS

DB Group Limited Full Year Financial Results for 12 months ended 30 September 2001

- Sales revenue from continuing operations was up 1% 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.
- Earnings before interest and tax was up 6% on continued business from $28.2 million in 2000 to $29.8 million in 2001.
- Net profit after tax and minorities from continuing operations is $20.2 million which is a return on equity of 15.8%, up from 10.8% on the then larger operating group (including Corbans Wines) in 2000.
- Considerable success in the growing premium segment of the market with Heineken reinforcing its position as New Zealand's leading premium beer. Monteith's achieved the distinction of being DB's fastest growing brand, showing growth of over 20%. In the mainstream segment both Tui and Export Gold had improved their sales over last year.
- Good progress is being made on the $60 million redevelopment of the Waitemata site involving a new packaging hall and a new administration building.
- Cost increases arising from inflationary pressures and the lower value of the New Zealand dollar impacted unfavourably on operating margin.
- The sale of Corbans Wines to Montana on 1 October 2000 resulted in a gain of $34.7 million. Proceeds from the sale of Corbans Wines totalling $151.3 million were distributed to shareholders in December 2000.

KEY COMPARISONS

DB Group Limited Full Year Financial Results for 12 months ended 30 September 2001

2001
$m Excluding
Discontinued
Activities
2000
$m

Sales 278.3 276.2
Operating Surplus before interest, non-recurring items and taxation 31.0 28.2
Net Operating Assets 136.9 120.3
Cashflow/(Outflow) (8.4) (7.0)
The Key Comparisons above reflect the discontinued operations of the company including the Liquor Division (Allied Liquor Merchants and NZ Liquor) and the Wine Division (Corbans Wines).

OTHER INFORMATION

Shareholders' Equity

- At 30 September 2001, shareholders' equity was $128.1 after the capital repayment to shareholders of $151.3 million.

Borrowings

- At 30 September 2001, the company had net debt of $2.8 million.

Dividend

- A fully imputed final dividend of 15.5 cents per share and a supplementary dividend to non-resident shareholders of 2.74 cents per share. These dividends will be paid on 28 November 2001 to shareholders on the register at 5.00pm on 16 November 2001.

- This combined with the interim dividend makes a total dividend for the year of 27 cents per share.

- All proceeds from the sale of Corbans Wines were returned to shareholders.

1 November 2001

MEDIA STATEMENT

ISSUED BY:
Brian Blake
Group Managing Director
DB Group Limited

DB GROUP CONTINUES
STRONG OPERATING PERFORMANCE

Brian Blake, Managing Director of DB Group, today announced a strong year-end operating performance for the streamlined company.

DB Group’s earnings before interest and tax for the 12 months ended 30 September were $31.0 million. This result has been achieved following the divestment of non-core assets (Allied Liquor Merchants, NZ Liquor and Corbans Wines) during the previous financial year. The sale of Corbans to Montana in October 2000 had resulted in a gain of $34.7 million. All proceeds from this sale had been distributed to shareholders in December 2000.

The net profit after tax and minorities from continuing operations is $20.2 million which is a return on equity of 15.8%, up from 10.8% on the then larger operating group in 2000.

DB Group now consists solely of DB Breweries Limited and the liquor franchise, Liquorland.

Mr Blake said he was pleased with the result, which had been achieved in a difficult and challenging market. DB Breweries had achieved a slight increase in sales, from $276.2 million to $278.3 million, without the one-off impacts of the initial load into supermarkets, the Millennium celebrations and the America’s Cup.

Whilst the market had been difficult, DB Breweries had continued to achieve success in building its key brands, particularly in the growing premium segment. Heineken, the leading premium brand in New Zealand, had further improved its position during the past year whilst Monteith’s had achieved the distinction of being DB Breweries’ fastest growing brand achieving growth of over 20%. In the mainstream segment both Tui and Export Gold had experienced growth. Part of Tui’s growth had come from its successful introduction into the key Auckland market.

Mr Blake said that cost increases arising from inflationary pressures and the lower value of the New Zealand dollar had impacted unfavourably on margins and operating costs.

Progress on the $60 million redevelopment of the Waitemata brewery site, involving a new packaging hall and an administration building, was progressing well with the project scheduled to be completed in August 2002. DB staff in Auckland would be relocated from three existing sites onto the Waitemata site.

A fully imputed final dividend of 15.5 cents per share, and a supplementary dividend to non-resident shareholders of 2.74 cents per share, will be paid on 28 November. This combined with the interim dividend makes a total dividend for the year of 27 cents per share.

ENDS

For further information please contact:

Brian Blake
Group Managing Director
DB Group

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