2018 Full Year Results

Growing in a challenging market - T&G Global announces 2018 financial year results T&G Global Limited (T&G) increased its revenue by $120 million in the 2018 financial year to $1.2 billion. Challenges in its business divisions and markets however, impacted on both volumes and prices. These factors, combined with increases in operating expenses, saw T&G's operating profit decrease by $11.5 million to $15.6 million in 2018. Operational and environmental challenges in key business divisions and markets impacted T&G's 2018 financial result, including a poor New Zealand growing season for apples and the impact of Chinese tariffs. The International Produce division saw adverse weather conditions impact on its cherry season in Australia and the quality of its grape harvest in Peru. Despite these climatic challenges, the division saw an increase in operating profit of $3.1 million in 2018 due to favourable trading conditions in most of its markets, particularly the Pacific Islands. After a record result in 2017, trading in the New Zealand Produce division returned to more familiar levels. Poor growing conditions for tomatoes in early 2018 and an oversupply in the domestic market late in 2018 contributed to a decline in operating profit of $8.2 million from 2017 to 2018. Outside of its trading divisions, T&G's share of income from associates increased from $0.4 million in 2017 to $2.5 million in 2018, mainly driven by the first full year of returns from its investment in The Oppenheimer Group. Total assets reduced by $50.5 million, mainly through the sale of kiwifruit post-harvest facilities and orchard land, the sale of assets related to the processed foods business and the sale of property in Christchurch. T&G's capital expenditure in 2018 was up $6.5 million to $30.2 million. The increase related mainly to the significant investment in new bearer plants as part of a focus on key categories and securing long term supply of key apple varieties. T&G's net profit after tax from continuing operations reduced by $29.8 million from $40.2 million in 2017 to $10.4 million in 2018. T&G's strategic focus is on strengthening core business and building vertically integrated produce categories. A major part of this strategy is to divest of non-core assets and businesses and reinvesting the capital in higher performing business activities. With a new CEO, Gareth Edgecombe, who joined the company in July 2018, T&G has undergone a major strategic review and developed a Roadmap for Growth which includes driving global growth in apples and building new global categories, simplifying the operating model, leveraging a strong New Zealand base and streamlining non-core assets. For further information, please contact; Belinda Abernethy, Corporate Communications Manager T&G Global +64 (0) 27 564 7436 Belinda.abernethy@tandg.global Appendix 1 - Preliminary Announcements - Full Year Results T&G GLOBAL LIMITED AND SUBSIDIARY COMPANIES Results for announcement to the market Based on audited financial statements Reporting period Twelve months to 31 December 2018 Previous reporting period Twelve months to 31 December 2017 2018 Restated 2017* Percentage change $'000 $'000 Revenue from ordinary activities - continuing operations $1,188,203 $1,068,145 11.2% Profit from ordinary activities after tax attributable to security holders - continuing operations $5,657 $37,028 -84.7% Net profit attributable to security holders $3,581 $19,379 -81.5% Dividend to shareholders Amount per share Imputed amount per share No final dividend planned. - - Dividend record date N/A Dividend payment date N/A 2018 2017 Net tangible assets per share $3.08 $3.17 Earnings and diluted earnings per share $0.029 $0.158 Comments Financial commentary, audited financial statements are attached as part of this announcement. * Prior year comparative numbers have been restated to ensure comparability with current year classifications End CA:00331185 For:TGG Type:FLLYR Time:2019-02-27 10:14:10