Unaudited Audited 31 December 30 June R'000 R'000 R'000 Restated Restated

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1 Distell Group Limited Registration number: 1988/005808/06 JSE share code: DST ISIN: ZAE ("Distell" or "the Group" or "the Company") UNAUDITED RESULTS OF THE GROUP FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 AND CASH DIVIDEND DECLARATION SALIENT FEATURES - Sales volumes up 5,5% - Revenue up 15,1% - Normalised operating profit up 13,4% - Normalised headline earnings per share up 8,5% - Interim dividend up 1,3% to 154,0 cents per share ABRIDGED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ASSETS Non-current assets Property, plant and equipment Biological assets Financial assets Investments in associates Investments in joint ventures Intangible assets Retirement benefit assets Deferred income tax assets Total non-current assets Current assets Inventories Trade and other receivables Current income tax assets Cash and cash equivalents Total current assets Total assets EQUITY AND LIABILITIES Capital and reserves Capital and reserves Non-controlling interest

2 Total equity Non-current liabilities Interest-bearing borrowings Retirement benefit obligations Deferred income tax liabilities Total non-current liabilities Current liabilities Trade and other payables Interest-bearing borrowings Provisions Current income tax liabilities Total current liabilities Total equity and liabilities ABRIDGED CONSOLIDATED INCOME STATEMENTS Six months ended Year ended Change 2013 R'000 R'000 % R'000 Revenue , Operating costs ( ) ( ) 15,3 ( ) Costs of goods sold ( ) ( ) ( ) Sales and marketing costs ( ) ( ) ( ) Distribution costs ( ) ( ) ( ) Administration and other costs ( ) ( ) ( ) Other gains Operating profit , Dividend income Finance income Finance costs ( ) (29 177) ( ) Share of profit of associates and joint ventures Profit before taxation , Taxation ( ) ( ) ( ) Profit for the period ,

3 Attributable to: Equity holders of the company , Non-controlling interest (1 751) 365 (5 203) , Per share performance: Issued number of ordinary shares ('000) Weighted number of ordinary shares ('000) Earnings per ordinary share (cents) - basic earnings basis 527,7 429,3 22,9 536,8 - diluted earnings basis 504,5 415,8 21,3 492,4 - headline basis 526,1 429,2 22,6 531,7 - diluted headline basis 503,0 415,8 21,0 487,8 Dividends per ordinary share (cents) - interim 154,0 152,0 1,3 152,0 - final ,0 154,0 152,0 1,3 335,0 Reconciliation of headline earnings: Net profit attributable to equity holders of the company , Adjusted for (net of taxation): net other capital gains (3 222) (102) (10 256) Headline earnings , Adjusted for (net of taxation): abnormal excise duty and interest provision remeasurement of contingent consideration ( ) - - impact of new business acquisitions Normalised headline earnings , ABRIDGED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Six months ended Year ended Profit for the period Other comprehensive income (net of taxation) Items that may be reclassified subsequently to profit or loss: Fair value adjustments - available-for-sale financial assets Currency translation differences Items that will not be reclassified to profit or loss: Actuarial gains and losses Total comprehensive income for the period

4 Attributable to: Equity holders of the company Non-controlling interest (1 611) (365) (4 586) ABRIDGED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Six months ended Year ended Attributable to equity holders Opening balance Comprehensive income Profit for the period Other comprehensive income (net of taxation) Fair value adjustments: - available-for-sale financial assets Currency translation differences Actuarial gain on post-employment benefits Total other comprehensive income Total comprehensive income for the period Transactions with owners Employee share scheme: - shares paid and delivered value of employee services BEE share-based payment Dividends paid ( ) ( ) ( ) Total transactions with owners ( ) ( ) ( ) Attributable to equity holders Non-controlling interest Opening balance Loss for the period (1 751) 365 (5 203) Dividends paid (742) (488) (488) Currency translation differences Effect of changes in accounting policies Acquisition of interest in subsidiary (7 651) Non-controlling interest arising on business combination Total non-controlling interest Total equity at the end of the period

5 ABRIDGED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended Year ended Cash flow from operating activities Operating profit Non-cash flow items (93 739) Working capital changes ( ) ( ) ( ) Inventories ( ) Trade and other receivables ( ) ( ) ( ) Trade payables and provisions ( ) Cash generated from operations Net financing costs ( ) (24 599) ( ) Taxation paid ( ) ( ) ( ) Net cash generated from operating activities Net cash outflow from investment activities ( ) ( ) ( ) Net cash inflow from financing activities Dividends paid ( ) ( ) ( ) Increase in net cash, cash equivalents and bank overdrafts ( ) Net cash, cash equivalents and bank overdrafts at the beginning of the period (70 197) Exchange gains on cash and cash equivalents Net cash, cash equivalents and bank overdrafts at the end of the period (70 197) SEGMENTAL ANALYSIS Six months ended Year ended Revenue from external customers Sales of alcoholic beverages South Africa International Other revenue Consolidated

6 Six months ended Year ended Operating profit South Africa International Corporate services ( ) ( ) ( ) Other gains Consolidated NOTES 1. Sales volumes (litres '000) Net interest-bearing borrowings Interest-bearing borrowings Non-current Current Cash and cash equivalents ( ) ( ) ( ) 3. Cash outflow from investment activities ( ) Purchases of property, plant and equipment (PPE) to maintain operations ( ) ( ) ( ) Purchases of PPE to expand operations ( ) ( ) ( ) Proceeds from sale of PPE Purchases of financial assets (18 794) (1 325) (17 426) Proceeds from financial assets

7 Purchases of intangible assets (2 425) (2 081) (274) Acquisition of subsidiaries, net of cash acquired (12 201) ( ) ( ) ( ) ( ) 4. Capital commitments Contracted Authorised, but not contracted Depreciation of property, plant and equipment Net asset value per share (cents) Segment report Operating segments were identified based on financial information reviewed regularly by management for the purpose of assessing performance and allocating resources to these segments. Revenue includes excise duty. BASIS OF PREPARATION, ACCOUNTING POLICY AND COMPARATIVE FIGURES The interim financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports and the requirements of the Companies Act applicable to interim financial statements. The Listings Requirements require preliminary reports to be prepared in accordance with the framework concepts, the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and must also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The directors are responsible for the preparation of the interim financial statements which were prepared under supervision of the Group financial director, MJ Botha CA(SA). The accounting policies applied in the preparation of the interim financial statements are in terms of IFRS and are consistent with the accounting policies applied in the preparation of the previous consolidated annual financial statements, with the exception of the implementation of the following new accounting standards, interpretations and amendments to IFRS: - IAS 19: Employee Benefits (effective 1 January 2013) - IFRS 10: Consolidated Financial Statements (effective 1 January 2013) - IFRS 11: Joint Arrangements (effective 1 January 2013) - IFRS 12: Disclosure of Interest in Other Entities (effective 1 January 2013) - IFRS 13: Fair Value Measurement (effective 1 January 2013) - Revised IAS 28: Investments in Associates and Joint Ventures (effective 1 January 2013) - Revised IAS 27: Separate Financial Statements (effective 1 January 2013)

8 - Amendments to the transition requirements in IFRS 10: 'Consolidated Financial Statements', IFRS 11: 'Joint Arrangements'and IFRS 12:'Disclosure of Interests in Other Entities' (effective 1 January 2013) Comparative financial statements have been restated, where applicable, to account for the amendments to and adoption of the following standards: IAS 19: Employee benefits requires the immediate recognition of all past service costs; and interest cost and expected return on plan assets are replaced with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability/(asset). The Group has applied the standard retrospectively in accordance with the transitional provisions of the standard. IFRS 10: Consolidated Financial Statements establish principles for the presentation and preparation of consolidated financial statements when an entity controls other entities. Based on these principles, certain entities which were previously classified as joint ventures are now classified as subsidiaries. The Group has applied the standard retrospectively in accordance with the transitional provisions of the standard. IFRS 11: Joint Arrangements require that the Group applies equity accounting for joint ventures and eliminates the proportionate consolidation option. Previously, the Group proportionately consolidated its joint ventures, which required that it included its share of assets, liabilities, income and expenses of joint ventures on a line-for-line basis in the consolidated financial statements. Under the equity method, the investment in joint ventures is initially recognised at cost and the carrying amounts are increased or decreased to recognise the Group's share of profit or loss and movements in other comprehensive income of joint ventures after the acquisition date. The Group has applied the standard retrospectively in accordance with the transitional provisions of the standard. The effect of the restatement on the comparative financial statements is summarised below: Income statement 31 December 2012 Previously Currently Difference reported reported reported Revenue (72 700) Operating expenses ( ) ( ) Other gains (37) Finance income (280) Finance costs (29 685) (29 177) 508 Share of profit of associates and joint ventures Taxation ( ) ( ) June 2013 Revenue ( ) Operating expenses ( ) ( ) Other gains (200) Finance income (515) Finance costs ( ) ( ) Share of profit of associates and joint ventures Taxation ( ) ( ) Statement of financial position 31 December 2012 ASSETS

9 Property, plant and equipment ( ) Biological assets (18 058) Financial assets Investments in joint ventures Intangible assets (7 650) Deferred income tax assets (32 176) Inventories (71 127) Trade and other receivables (18 195) Current income tax assets (607) Cash and cash equivalents EQUITY Non-controlling interest (26 854) (26 609) 245 LIABILITIES Deferred income tax liabilities ( ) ( ) Trade and other payables ( ) ( ) Provisions ( ) ( ) 4 Current income tax liabilities (75 142) (75 010) 132 Statement of financial position 30 June 2013 ASSETS Property, plant and equipment ( ) Biological assets (17 159) Financial assets Investments in joint ventures Intangible assets (7 409) Deferred income tax assets (11 868) Inventories (78 438) Trade and other receivables (28 869) Current income tax assets (479) Cash and cash equivalents EQUITY Non-controlling interest (30 333) (30 650) (317) LIABILITIES Deferred income tax liabilities ( ) ( ) Trade and other payables ( ) ( ) Interest-bearing borrowings ( ) ( ) 2 Provisions ( ) ( ) 474 Current income tax liabilities (3 963) (3 927) 36 The adoption of the other amendments and statements had no material impact on the consolidated results of either the current or prior periods. OPERATING PERFORMANCE

10 Reported headline earnings rose 22,9% to R1,1 billion, while operating profit increased 27,2% to R1,5 billion. In April 2013, the Group acquired Burn Stewart Distillers Limited (BSD). The results of this entity for the six months, the remeasurement of the contingent purchase consideration payable on the BSD acquisition, as well as new business development expenses, are included in earnings. Normalised headline earnings and operating profit, which exclude the results of BSD, as well as the remeasurement of the contingent purchase consideration and the full impact of new business development expenses in the current period, increased by 8,8% and 13,4% respectively. Revenue grew 15,1% to R9,9 billion on a sales volume increase of 5,5%. Domestic revenue increased by 5,2% and sales volumes by 3,1% in a challenging economic environment which continued to curtail consumer demand. Distell's cider and RTD (ready-to-drink) brands continued their strong performance. The spirits portfolio showed a volume decline, mostly as a result of the depressed performance of the brandy category. Sales volumes of the wine portfolio declined marginally. International sales volumes, including Africa, rose by 12,7% while revenue improved 48,9%, benefiting from a weaker rand and the addition of the BSD brand portfolio. Ciders and RTDs once again delivered strong volume growth. The wine and spirits portfolios delivered growth of 6,4% and 54,0% respectively. Sub-Saharan African markets, outside South Africa, continued to deliver exceptional results with strong volume growth across all categories. The region contributed 55,1% to foreign revenue. The financial results for the period, supported by satisfactory overall revenue growth, were positively influenced by a weaker rand. Steep increases in excise duties and marketing expenses were partially offset by foreign currency gains, the benefits from improved efficiencies in the business and the normalisation of certain raw material input costs. Operating expenses increased by 15,3% while revenue rose 15,1%. Operating profit margin, excluding the gain on the remeasurement of the BSD contingent purchase consideration, declined marginally from 14,0% to 13,8%. Net finance costs increased from R23,9 million to R110,2 million, mainly as a result of increased borrowings during the period. The effective tax rate decreased from 28,6% to 26,5%, due to non-taxable income. INVESTMENT AND FUNDING Total assets increased by 46,9% to R16,1 billion. Total assets, excluding new business acquisitions since the previous interim reporting period, grew 15,4% to R12,7 billion. Excluding the impact of new business acquisitions, investment in net working capital, on an organic basis, increased by 20,7% to R4,3 billion and inventory by 12,0% to R4,9 billion. Of this, bulk spirits in maturation, planned in accordance with the Group's longer-term demand projections, grew 20,5%. Bottled stock and packaging materials reflect an increase of 5,7% on the previous year. Capital expenditure for the six months amounted to R387,2 million, of which R144,3 million was spent on the replacement of assets. A further R242,9 million was directed to the expansion of capacity, mainly at cider and whisky manufacturing facilities and expanding our operations in sub-saharan Africa. Cash retained for the six months amounted to R143,7 million (2012: R241,1 million). The Group remains in a strong financial position, as shown by a debt to debt-plus-equity ratio of 25,1% and a debt-equity ratio of 33,6% at the end of the reporting period. IMPACT OF RESTRUCTURED BEE TRANSACTION

11 As disclosed in a circular to shareholders on 17 December 2013, Distell s original BEE transaction was restructured on 17 January The 17,7 million additional shares, issued to members of the BEE Consortium in terms of the transaction, will only impact the weighted average number of shares in issue and therefore earnings and headline earnings per share for the full year. The additional shares are, however, entitled to the interim dividend and therefore impact dividends per share for this reporting period. PROSPECTS We believe challenging trading conditions in many of our markets will persist for the remainder of the year. However, the strength, appeal and diversity of our brands, our enhanced capacity to trade across a spectrum of markets and the security of our financial position will allow us to continue pursuing our strategic course successfully. DIRECTORATE Mr Duimpie Bayly retired as non-executive director during the period. Mr Richard Rushton has been appointed as executive director to the board from 1 November 2013 and as managing director of the Group in the place of Mr Jan Scannell who retired on 31 December CASH DIVIDEND DECLARATION The directors have resolved to declare a gross cash dividend, number 51, of 154,0 cents (2012: 152,0 cents) per share for the interim period ended 31 December The dividend has been declared from income reserves. There are no STC credits available for utilisation and the dividends tax rate is 15%. Dividends tax will amount to 23,1 cents per ordinary share. As a result, ordinary shareholders who are liable to pay dividends tax will receive a net dividend amount of 130,9 cents per share. Shareholders exempt from paying dividends tax will receive 154,0 cents per share. The issued ordinary share capital as at 20 February 2014 is ordinary shares. The company's income tax reference number is The dividend will be payable to shareholders on record on Friday, 14 March 2014, and will be paid on Monday, 17 March The last day to trade cum dividend will be on Friday, 7 March 2014, and shares commence trading ex dividend from Monday, 10 March Share certificates may not be dematerialised or rematerialised between Monday, 10 March 2014, and Friday, 14 March 2014, both days inclusive. Signed on behalf of the board DM Nurek RM Rushton Chairman Managing director Stellenbosch 20 February 2014 Directors: DM Nurek (Chairman), PE Beyers, MJ Botha, JG Carinus, GP Dingaan, JJ Durand, E de la H Hertzog, MJ Madungandaba, LM Mojela, CA Otto, AC Parker, RM Rushton (Managing director),ce Sevillano-Barredo, BJ van der Ross, LC Verwey Company secretary: CJ Cronjé Registered office: Aan-de-Wagenweg, Stellenbosch 7600 Transfer secretaries: Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg PO Box 61051, Marshalltown 2107

12 Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited) AMARULA Amarula is undoubtedly one of South Africa s most successful exports. As the only South African brand on the Impact Databank list of the world s top 100 premium spirits brands, it is sold in more than 100 countries. Amarula is also the 36th most popular spirit sold in Duty-free, according to IWSR. BISQUIT Thanks to a positive momentum in its traditional markets (Belgium, Switzerland, France) and strong development in new ones (South Africa, Duty-free, Nigeria), Bisquit is consolidating its growth. This growth was supported by innovation (Experience Bisquit Coffret) and limited editions (XO Gold). For the fifth year in a row, Bisquit has won medals for each of its authentic French cognacs at the International Wine & Spirit Competition (IWSC), the only cognac House to do so. NEDERBURG Nederburg continues to raise its profile further as the official wine sponsor of MasterChef South Africa, now in its third season. As the country s most awarded winery, Nederburg has maintained its reputation for excellence, excelling at the most recent Decanter World Wine Awards, International Wine & Spirit Competition, International Sweet Wine Challenge and Veritas Awards. Nederburg also achieved four five-star ratings in the current edition of the Platter s South African Wine Guide. SAVANNA Savanna continues to enjoy global growth and is now available in more than 60 countries. The recent launch of Savanna Dark has created a stir in the marketplace as it is the first brand to be launched in black glass in South Africa. The brand also won two coveted digital awards recognising the brand s dedication to social media. BAIN S CAPE MOUNTAIN WHISKY This fast-growing local brand was recently in the global spotlight when it won the title of World s Best Grain Whisky at the 2013 World Whisky Awards. BUNNAHABHAIN Bunnahabhain s distinctive 12, 18 and 25 year old single malt whiskies, all un-chillfiltered, bring back time-honoured traditions in whisky-making and earn the distillery a growing reputation for excellence. Bunnahabhain 25 year old single malt (Scotch whisky), produced on the world-famous Isle of Islay, was awarded gold at the International Wine & Spirit Competition, double gold for the second consecutive year at the San Francisco World Spirits Competition and a trophy for the Best Islay Single Malt in the 21 years and over category at the World Whisky Awards.