HALLENSTEIN GLASSON HOLDINGS LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 1 FEBRUARY 2014 (unaudited) Group Half Year ended 1/2/14 $000's Sales Revenue Cost of Sales Gross Profit Group Half Year ended 1/2/13 up/down % 106,430 (44,805) 61,625 115,730 (47,606) 68,124 Other Operating Income 255 69 Selling Expenses Distribution Expenses Administration Expenses Total Expenses (40,149) (3,379) (10,034) (53,562) (41,097) (3,540) (9,653) (54,290) -2.3% -4.5% 3.9% -1.3% 8,318 291 8,609 13,903 541 14,444 -40.2% -46.2% -40.4% (2,432) (4,073) -40.3% 6,177 10,371 -40.4% 150 (54) 62 22 6,389 10,339 Operating Profit Finance Income Profit Before Income Tax Income Tax Net Surplus Attributable to the Shareholders of the Holding Company Other comprehensive income Fair value gain (loss) in cash flow hedge reserve net of tax Increase (Decrease) in Share Option Reserve Total comprehensive income for the year Earnings per share Basic earnings per share Diluted earnings per share 10.36 10.36 -8.0% -9.5% 17.39 17.39 The Notes to the Accounts form an integral part of and are to be read in conjunction with these Financial Statements. Page 2 HALLENSTEIN GLASSON HOLDINGS LIMITED STATEMENT OF FINANCIAL POSITION AS AT 1 FEBRUARY 2014 (unaudited) Group As at 1/2/14 $'000 Equity Contributed Equity Asset revaluation reserve Cashflow hedge reserve Share Option Reserve Retained earnings Total Equity Group As at 1/2/13 $'000 Group As at 1/8/13 $'000 28,241 11,811 290 149 22,138 62,629 27,566 10,632 (40) 284 27,362 65,804 28,498 11,811 140 87 26,399 66,935 16,419 878 509 26,199 1,069 19,312 1,138 544 Represented by Current Assets Cash and cash equivalents Trade and other receivables Advances to Employees Due From Subsidiaries Derivative Financial Instruments Prepayments Inventories Total Current Assets 404 584 14,589 33,383 3,187 13,650 44,105 195 2,669 20,224 44,082 Non-Current Assets Investments in Subsidiaries Property, plant and equipment Intangible assets Deferred tax Total Non-Current Assets 40,251 496 435 41,182 38,253 626 835 39,714 40,209 597 420 41,226 Total Assets 74,565 83,819 85,308 1,500 3,454 7,654 6,836 3,081 7,302 1,154 18,373 Current Liabilities Trade payables Employee benefits Other payables Taxation payable Total Current Liabilities (672) 11,936 3,923 3,695 9,248 55 1,094 18,015 Total Liabilities 11,936 18,015 18,373 Net Assets 62,629 65,804 66,935 Derivative Financial Instruments The Notes to the Accounts form an integral part of and are to be read in conjunction with these Financial Statements. Page 3 HALLENSTEIN GLASSON HOLDINGS LIMITED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 1 FEBRUARY 2014 (unaudited) Group Share Capital $000 Balance at 1 August 2012 Treasury Asset Stock revaluation reserve $000 $000 Cash flow hedge reserve $000 Share Option Reserve $000 Retained earnings Total Equity $000 $000 29,279 (1,607) 10,632 14 325 27,921 66,564 Comprehensive Income Profit for year Revaluation net of tax Cash flow hedges net of tax Increase in share option reserve Total comprehensive income - - - (54) (54) 22 22 10,371 10,371 10,339 Transactions with Owners Purchase of treasury stock Sale of treasury stock Transfer of treasury stock to employees Transfer of share option reserve to retained earnings Dividends Gain/loss on sale of treasury stock transferred to retained earnings Total transactions with owners - (699) 732 142 59 (340) (106) - - (63) (63) 63 (11,333) 340 (10,930) (11,099) 29,279 (1,713) 10,632 (40) 284 27,362 65,804 - - 1,179 1,179 180 180 59 59 8,298 8,298 9,716 - 221 105 633 - - - (9,544) - Balance at 1 February 2013 Comprehensive Income Profit for year Revaluation net of tax Cash flow hedges net of tax Increase in share option reserve Total comprehensive income Transactions with Owners Purchase of treasury stock Sale of treasury stock Dividends Transfer to Employee Advances Transfer of share option reserve to retained earnings Gain/loss on sale of treasury stock transferred to retained earnings Total transactions with owners - (27) 932 - - (256) (256) 256 27 (9,261) (8,585) 29,279 (781) 11,811 140 87 26,399 66,935 Comprehensive Income Profit for year Revaluation net of tax Cash flow hedges net of tax Increase in share option reserve Total comprehensive income - - - 150 150 62 62 6,177 6,177 6,389 Transactions with Owners Purchase of treasury stock Sale of treasury stock Transfer of treasury stock to employees Transfer of share option reserve to retained earnings Dividends Gain/loss on sale of treasury stock transferred to retained earnings Total transactions with owners - (298) - - (257) - - (10,438) (10,438) (10,695) 29,279 (1,038) 11,811 290 149 22,138 62,629 Balance at 1 August 2013 Balance at 1 February 2014 41 Page 4 HALLENSTEIN GLASSON HOLDINGS LIMITED STATEMENTS OF CASH FLOWS Group FOR THE SIX MONTHS ENDED 1 FEBRUARY 2014 (unaudited) Half Year ended 1/2/14 Half Year ended 1/2/13 $'000 $'000 Cash Flows from Operating Activities Receipts: Sales to customers 106,689 115,667 Rent received 255 69 Interest from short term advances 268 512 Other interest 23 29 107,235 116,277 Cash was applied to: Payments to suppliers 70,656 73,114 Payments to employees 20,703 21,529 Interest paid - - 4,331 6,401 95,690 101,044 11,545 15,233 Proceeds from sale of property,plant and equipment and intangible assets 43 92 Repayment of Employee Advances 35 Taxation paid Net cash flows from/(applied to) operating activities Cash flows from investing activities Cash was provided from: 78 92 3,821 3,855 Cash was applied to: Purchase of property, plant and equipment and intangible assets Net cash flows from/(applied to) investing activities 3,821 3,855 (3,743) (3,763) Cash flows from financing activities Sale of treasury stock Dividends received for treasury stock - 732 41 59 41 791 10,438 11,333 Cash was applied to: Dividend paid Purchase of treasury Stock Net cash flows from/(applied to) financing activities Net increase/(decrease) in funds held 298 699 10,736 12,032 (10,695) (11,241) (2,893) 229 1,122 2,694 Opening cash position Bank Add: Cash on hand Short term deposits Net cash held at balance date 63 68 18,127 23,208 18,190 23,276 19,312 25,970 5,496 841 10,861 25,291 Closing cash position Bank Add: Short term deposits Cash on hand 62 67 10,923 25,358 Net cash held at balance date 16,419 26,199 Net increase/(decrease) in funds held (2,893) 229 The Notes to the Accounts form an integral part of and are to be read in conjunction with these Financial Statements. Page 5 HALLENSTEIN GLASSON HOLDINGS LIMITED RECONCILIATION OF SURPLUS AFTER TAXATION TO CASH FLOWS FROM OPERATING ACTIVITIES FOR THE SIX MONTHS ENDED 1 FEBRUARY 2014 (unaudited) Reported surplus after taxation Add/(deduct) items classified as investing or financing activities (Gain)/ loss on sale of plant and equipment Add/(deduct) non cash items Depreciation and amortisation Deferred taxation Revaluation of Financial Instruments Notional Share Option Cost Add/(deduct) movements in working capital items Taxation payable Receivables Creditors and accruals Inventories Net cash flows from/(applied to) operating activities Year ended 1/2/14 $'000 Year ended 1/2/13 $'000 6,177 10,371 8 (18) 3,828 (73) 3,760 (222) 62 22 (1,826) 2,345 (4,611) (2,107) (490) (1,947) 5,635 5,864 11,545 15,233 The Notes to the Accounts form an integral part of and are to be read in conjunction with these financial statements. SEGMENT RESULTS (unaudited) For the period ended 1 February 2014 Glassons Glassons New Zealand Australia $000's Hallensteins $000's $000's Storm Property $000's Parent Total Group $000's $000's - - $000's INCOME STATEMENT Total sales revenue from external customers Cost of Sales 41,047 18,040 43,040 4,303 (17,575) (7,224) (18,522) (1,484) Interest Income Depreciation and software amortisation Net Profit Before Tax 106,430 (44,805) 40 3 244 3 - 1 291 1,542 907 1,063 190 126 - 3,828 4,243 (1,726) 5,282 401 409 - 8,609 (1,193) 483 (1,494) (114) (114) - (2,432) 3,050 (1,243) 3,788 287 295 - 6,177 Current Assets 10,207 3,572 18,218 1,004 36 346 Non Current Assets 13,280 5,637 6,989 1,085 14,191 Current Liabilities 5,062 1,985 4,167 572 118 Purchase of property, plant and equipment and intangibles 2,029 287 1,361 96 48 Tax Net profit after tax BALANCE SHEET For the period ended 1 February 2013 Glassons Glassons New Zealand Australia $000's Hallensteins $000's $000's Storm Property $000's 33,383 41,182 32 - 11,936 3,821 Parent Total Group $000's $000's - - $000's INCOME STATEMENT Total sales revenue from external customers Cost of Sales Interest Income Depreciation and software amortisation Net Profit Before Tax 45,870 21,375 43,754 4,731 (20,138) (7,916) (18,149) (1,403) 150 8 375 4 1,456 944 1,067 172 115,730 (47,606) - 4 121 - 541 3,760 6,412 (822) 7,159 1,147 548 - 14,444 (1,807) 222 (2,010) (325) (153) - (4,073) 4,605 (600) 5,149 822 395 - 10,371 Current Assets 12,751 3,297 27,002 1,046 (61) Non Current Assets 12,216 6,547 6,210 1,018 13,723 Current Liabilities 6,892 3,137 6,828 992 61 Purchase of property, plant and equipment and intangibles 1,972 783 914 186 - Tax Net profit after tax BALANCE SHEET 70 44,105 39,714 105 - 18,015 3,855