Australian Vintage : 2018 Annual Report

2018 ANNUAL REPORT

The Farms Vineyard, Barossa Valley

As a company so reliant on our environment and natural resources, we at Australian Vintage Limited are proud to produce our 2018 Annual Report on Carbon Neutral and 100% recycled paper.

EcoStar is an environmentally responsible paper made carbon neutral (CN) and the fibre source has been independently certified by the Forest Stewardship Council (FSC). ecoStar is manufactured from 100% post consumer recycled paper in a process chlorine free environment under the ISO 14001 environmental management system which guarantees continuous improvement. Carbon Neutral: the carbon emissions of the manufacturing process for ecoStar include: Incoming deliveries - raw materials and wrapping; Premises - energy consumption on site, waste treatment and disposal; Energy of materials - raw materials; Outgoing deliveries - transportation of the finished product to Raleigh

Paper warehouses have been measured and offset.

Contents

Board of Directors	2	Note 14:	Non-current inventories	64
Chairman's Report	4	Note 15:	Other non-current financial assets	64
Chief Executive Officer's Report	6	Note 16:	Property, plant and equipment	64
Company Profile	8	Note 17:	Goodwill	66
Corporate Governance Statement	11	Note 18:	Other intangible assets	67
Shareholders' Information	20	Note 19:	Water licences	67
Directors' Report	22	Note 20:	Assets pledged as security	68
Declaration of Independence	38	Note 21:	Current trade and other payables	68
Independent Audit Report	39	Note 22:	Current borrowings	68
Directors' Declaration	43	Note 23:	Other current financial liabilities	68
Financial Report	Note 24:	Current provisions	68
Consolidated Statement of Profit or Loss	Note 25:	Other current liabilities	68
and Other Comprehensive Income	45
		Note 26:	Non-current borrowings	69
Consolidated Statement of Financial Position	46
		Note 27:	Non-current other financial liabilities	69
Consolidated Statement of Changes in Equity	47
		Note 28:	Non-current provisions	69
Consolidated Statement of Cash Flows	48
		Note 29:	Provisions	69
Notes to the Financial Statements
	Note 30:	Employee superannuation plans	69
Note 1: General Information	49
		Note 31:	Issued capital	70
Note 2: Adoption of new and revised Accounting
	Note 32:	Reserves	70
Standards				49
Note 33:	Accumulated losses	70
			Note 3: Summary of accounting policies	51
Note 34:	Earnings per share	71
			Note 4: Critical accounting judgments and key
sources of estimation uncertainty	58	Note 35:	Dividends	71
59	Note 36:	Leases and other commitments	72
60	Note 37:	Contingent liabilities	72
61	Note 38:	Subsidiaries	73
Note 39:	Segment information	76
62
Note 40:	Related party transactions	77
63
Note 41:	Notes to the cash flow statement	78
63
Note 42:	Financial instruments	79
64
Note 43:	Events after the reporting period	87
64
Note 44:	Parent Entity Disclosures	88
64

Note 5:

Profit / (Loss) from operations

Note 6:

Income taxes

Note 7:

Key management personnel compensation

Note 8:

Executive performance rights and share option plan

Note 9:

Remuneration of auditors

Note 10: Current trade and other receivables

Note 11: Current inventories

Note 12: Other financial assets

Note 13: Other current assets

2 :: BOARD OF DIRECTORS

Australian Vintage Board of Directors

RICHARD DAVIS Chairman

Chairman of Monash IVF Group Limited and Director (and previously CEO) of InvoCare Limited where he previously spent almost 20 years growing and managing the business. Former accounting partner for a national accounting firm.

NEIL MCGUIGAN

Chief Executive Officer

Neil was previously the General Manager of Production and Wine Supply at Australian Vintage Limited. He was appointed as a Director and as the CEO on 21 July 2010. Neil has over 37 years' experience in the wine industry. He previously worked at the then privately owned Briar Ridge before leaving in 2000 to run Rothbury Estate and its satellites in the Upper Hunter, Cowra and Mudgee for the Foster's Group.

JOHN DAVIES Non-Executive Director

Fellow of the Institute of Chartered Accountants having worked for 36 years with Ernst & Young. John was elected to Ernst & Young's Asia Pacific Board of Partners for a 6 year period until his retirement in 2011. During his career he provided professional services to many of Australia's leading wine companies and he also owns a commercial vineyard in central Victoria. Chairman of the Audit Committee.

BOARD OF DIRECTORS :: 3

NASEEMA SPARKS AM

Non-Executive Director

Currently Chairperson of Snipp. Non-Executive Director of Arq Group (previously known as Melbourne IT Limited), IncentiaPay and AIG Australia. Former Chairperson of Deals Direct Group with extensive experience in marketing and digital media after a successful career with M&C Saatchi, one of Australia's largest and most successful advertising businesses. Naseema holds post graduate market and research qualifications and an MBA from Melbourne Business School. In 2016 was awarded a Member of the Order of Australia in recognition to significant service to business and commerce and to women through advancing female participation and retention in the workforce. Chairperson of the Remuneration and Nomination Committee.

PETER PERRIN

Non-Executive Director

General Manager of Torbreck Vintners. Trustee of The Wolf Blass Foundation. Peter has spent 35 years in the Australian Wine industry. His experience spans living in the USA in the early 80's launching the first successful push of Australian wines into North America with Lindeman's. He then joined Wolf Blass as the first export manager, travelling the world and establishing international sales offices' for Mildara Blass and Beringer Blass estates over the next 15 years. Peter has sat on many Australian Wine Industry Boards and run a number of successful wine companies.

JIANG YUAN (DIXON)

Non-Executive Director

Founder ofwww.yesmywine.com, the largest imported wine platform in the world, based in China.

Well known for pioneering data analytics and an innovator in imported wines in China, Dixon has considerable experience in distribution and selling of wine into Asia.