UNAUDITED RESULTS 7,0% 4,6% 9,5% 7,6% Operating profit: normalised. Revenue 10,5% Sales volumes 3,7% reported. Headline earnings: normalised

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1 UNAUDITED RESULTS OF THE GROUP FOR THE SIX MONTHS ENDED 31 DECEMBER Sales volumes 3,7 Revenue 10,5 Operating profit: normalised 7,0 reported 4,6 Headline earnings: normalised 9,5 reported 7,6 Interim dividend of 158,0 cents per share REGISTRATION NUMBER: 1988/005808/06 JSE SHARE CODE: DST ISIN: ZAE

2 HUNTER S is a natural cider crafted from the highest quality ingredients. Its popularity has grown since its launch in 1988 making it the largest cider brand in South Africa and the go to thirst quencher for every occasion. The Hunter s range includes Hunter s Dry, Hunter s Gold and Hunter s Extreme. Hunter s is available in more than 36 countries. AMARULA is South Africa s only brand to be featured on the Impact Databank list of the world s 100 top premium spirits brands. Amarula Cream continues to win international accolades, including gold at the San Francisco World Spirits Competition, Concours Mondial and the International Wine & Spirit Competition, while Amarula Gold recently took the title of Liqueur of the Year at the New York International Spirits Competition testimony of the brand s quality and appeal. SCOTTISH LEADER One of the fastest growing Scotch whiskies in the world, Scottish Leader is an award-winning blended Scotch whisky distilled and carefully blended from only the finest malt and grain Scotch whiskies. Scottish Leader has been revitalised with a new look a modern tall container, made of flint glass with clean edged glass chamfers, which were skilfully designed and manufactured to showcase the golden colour of the whisky. Scottish Leader is sold in over 60 countries around the world. BAIN S CAPE MOUNTAIN WHISKY The first South African whisky to be awarded World s Best Grain Whisky at the annual Whisky Magazine s World Whisky Awards in, Bain s Cape Mountain Whisky is distilled and double matured at The James Sedgwick Distillery in Wellington in the Western Cape. Earlier this month, Distell was declared Distiller of the Year by the authoritative Whisky Magazine in its 2015 Icons of Whisky competition, winning in the category Rest of the World which includes Japan, Australia, England and Ireland. RICHELIEU 10 With many accolades to its name including a Gold Outstanding award at the International Wine & Spirit Challenge, Richelieu 10 is something to be savoured as the night matures. Bred from the heart of selected grapes, this vintage brandy gets its purity from the fine art of copper pot distillation. The 10-year-old brandy offers a rich and rewarding aroma spectrum of chocolate, vanilla, green fig preserve and underlying hints of peaches and plums. NEDERBURG is a South African brand leader that continues to strengthen its domestic presence with an active marketing programme that includes sponsorship of the MasterChef South Africa series. The brand s profile is steadily growing internationally, notably in key African markets, Germany and the UK. Nederburg consistently demonstrates its top quality credentials on major international and domestic wine competitions, regularly winning trophies and gold medals. COMMENTARY Basis of preparation, accounting policy and comparative figures The interim financial statements are prepared in accordance with the JSE Limited Listings Requirements for preliminary reports and the requirements of the Companies Act applicable to interim financial statements. For the Listings Requirements preliminary reports must 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, 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 standards that have come into effect and have been adopted by the Group during the current financial year: Amendments to IAS 32: Financial Instruments Presentation (effective 1 January ) Amendments to IAS 19: Employee Benefits (effective 1 July ) Amendments to IAS 36: Impairment of Assets Recoverable amount disclosures for non-financial assets (effective 1 January ) Amendments to IAS 39: Financial Instruments Novation of derivatives and continuation of hedge accounting (effective 1 January ) Annual Improvements cycle (effective 1 July ) Annual Improvements cycle (effective 1 July ) IFRIC 21: Levies (effective 1 January ) The adoption of these amendments and statements had no material impact on the consolidated results of either the current or prior periods. Operating performance Revenue grew 10,5 to R11,0 billion on a sales volume increase of 3,7. Domestic revenue increased by 12,9 and sales volumes by 6,0 in a challenging economic environment which continued to experience curtailed consumer demand. Sales volumes of the wine portfolio reflected strong growth. Distell s cider and RTD (ready-to-drink) brands reflected satisfactory growth albeit at a slower pace than in previous years. The spirits portfolio showed a marginal volume increase. Revenue derived from the sale of the Group s brands in international markets, outside Africa, grew 9,3 on a volume decline of 1,0. The Group s international business also benefited from a weaker rand. The spirits portfolio delivered volume and revenue growth of 6,3 and 12,3 respectively. The wine category achieved revenue growth of 6,2 while volumes contracted by 2,4. In sub-saharan African markets, outside South Africa, revenue grew 4,1, while total volumes declined by 2,7, mainly due to the timing of export shipments to Angola. The region contributed 55,3 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 investments that are made to support corporate strategy were partially offset by lower increases in raw material input costs. Operating expenses increased by 11,1 on the back of increased investments made in key strategic initiatives. Revenue rose 10,5, resulting in operating profit margin declining marginally from 13,8 to 13,4. Net finance costs increased from R110,2 million to R126,7 million. The effective tax rate, as reported, increased from 26,5 to 28,6, mainly due to non-taxable gains relating to the remeasurement of the Burn Stewart Distillers Limited (BSD) contingent purchase consideration in the previous year. Normalised headline earnings and operating profit, that exclude the adjustments in respect of the purchase consideration for BSD referred to below, increased by 9,5 and 7,0 respectively. In April, the Group acquired BSD. A gain arising from the remeasurement of the contingent purchase consideration for this acquisition amounted to R159,0 million and was included in the comparative period s earnings. In the current period an expense of R8,9 million relating to the finalisation of this transaction is also included in earnings. Reported headline earnings decreased by 7,6 to R987,4 million and headline earnings per share decreased by 13,4 to 455,7 cents. Operating profit decreased 4,6 to R1,5 billion. Investment and funding Total assets increased by 10,6 to R17,9 billion. Investment in net working capital remained at R5,5 billion. Inventory increased by 6,8 to R6,6 billion. Of this, bulk spirits in maturation, planned in accordance with the Group s longerterm demand projections, grew 15,5. Bottled stock and packaging materials reflect a decrease of 1,6 on the previous year. Capital expenditure for the six months amounted to R305,7 million, of which R165,8 million was spent on the replacement of assets. A further R139,9 million was directed to the expansion of capacity, mainly in relation to the Group s cider and whisky manufacturing facilities. During December, the Group acquired a 26 equity stake in KWA Holdings E.A. Limited, Kenya s leading spirits manufacturer, bottler and distributor, for a cash consideration of R111,3 million. This transaction will enable the Group to expand its production and distribution footprint in the important East African market. Cash retained for the six months amounted to R1,1 billion (: R143,7 million). The Group remains in a strong financial position, as shown by a debt to debt-plus-equity ratio of 21,1 and a debt-equity ratio of 26,8 at the end of the reporting period. Prospects The global environment continues to be challenging due to diverging growth and monetary policy expectations in developed economies alongside a more notable moderation in emerging market growth. Tough trading conditions are therefore expected to persist. The Group nevertheless continues to pursue and invest in its long-term strategy to deliver shareholder value. This is backed by a robust and diverse portfolio of appealing brands, as well as a strengthened and extended route to market network that continues to evolve across a range of economies and regions. Cash dividend declaration The directors have resolved to declare a gross cash dividend, number 53, of 158,0 cents (: 154,0 cents) per share for the interim period ended. 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 23,7 cents per ordinary share. As a result, ordinary shareholders who are liable to pay dividends tax will receive a net dividend amount of 134,3 cents per share. Shareholders exempt from paying dividends tax will receive 158,0 cents per share. The issued ordinary share capital as at 16 February 2015 is (: ) ordinary shares. The company s income tax reference number is The dividend will be payable to shareholders on record on Friday, 13 March 2015, and will be paid on Monday, 16 March The last day to trade cum dividend will be on Friday, 6 March 2015, and shares commence trading ex dividend from Monday, 9 March Share certificates may not be dematerialised or rematerialised between Monday, 9 March 2015, and Friday,13 March 2015, both days inclusive. Signed on behalf of the board DM Nurek RM Rushton Chairman Managing director Stellenbosch 16 February 2015

3 Abridged consolidated statements of financial position Abridged consolidated income statements Abridged consolidated statements of comprehensive income ASSETS Non-current assets Property, plant and equipment Biological assets Loans and receivables Available-for-sale 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 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 Revenue , Operating costs ( ) ( ) 11,1 ( ) Costs of goods sold ( ) ( ) ( ) Sales and marketing costs ( ) ( ) ( ) Distribution costs ( ) ( ) ( ) Administration and other costs ( ) ( ) ( ) Other losses (4 884) Operating profit (4,6) Dividend income Finance income Finance costs ( ) ( ) ( ) Share of equity-accounted earnings Profit before taxation (5,3) Taxation ( ) ( ) ( ) Profit for the period (8,0) Attributable to: Equity holders of the company (7,6) Non-controlling interest (5 998) (1 751) (8,0) Per share performance: Issued number of ordinary shares ( 000) Weighted number of ordinary shares ( 000) Earnings per ordinary share (cents) basic earnings basis 453,0 527,7 (14,2) 725,8 diluted earnings basis 451,6 504,5 (10,5) 695,6 headline basis 455,7 526,1 (13,4) 721,3 diluted headline basis 450,3 503,0 (10,5) 691,3 Dividends per ordinary share (cents) interim 158,0 154,0 2,6 154,0 final 183,0 158,0 154,0 2,6 337,0 Reconciliation of headline earnings: Net profit attributable to equity holders of the company (7,6) Adjusted for (net of taxation): net other capital gains (2 885) (3 222) (9 421) Headline earnings (7,6) Adjusted for (net of taxation): remeasurement of contingent consideration ( ) ( ) Normalised headline earnings , Profit for the period Other comprehensive income (net of taxation) (1 991) 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 (9 537) Share of other comprehensive income of associates (3 188) Total comprehensive income for the period Attributable to: Equity holders of the company Non-controlling interest (6 287) (1 611)

4 Abridged consolidated statements of changes in equity Abridged consolidated statements of cash flows 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 loss on post-employment benefits (9 537) (1 973) Total other comprehensive losses (1 702) Total comprehensive income for the period Transactions with owners Employee share scheme: shares paid and delivered value of employee services Dividends paid ( ) ( ) ( ) s in ownership interests in subsidiaries that do not result in a loss of control (4 550) Total transactions with owners ( ) ( ) ( ) Attributable to equity holders Cash flow from operating activities Operating profit Non-cash flow items (93 739) Working capital changes ( ) ( ) Inventories ( ) Trade and other receivables ( ) ( ) (41 380) Trade payables and provisions ( ) Cash generated from operations Net financing costs (86 591) ( ) ( ) 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) (70 197) Exchange gains on cash and cash equivalents Net cash, cash equivalents and bank overdrafts at the end of the period Non-controlling interest Opening balance Loss for the period (5 998) (1 751) 961 Dividends paid (831) (742) (742) Currency translation differences (289) Contribution by non-controlling interest Transactions with non-controlling interests (3 801) (7 651) (7 651) Total non-controlling interest Total equity at the end of the period

5 Segmental analysis Notes Revenue from external customers Sales of alcoholic beverages South Africa , International , , Other revenue (6,0) Consolidated , Operating profit South Africa , International (2,6) , Corporate services ( ) ( ) 72,9 ( ) , Other gains (4 884) (103,0) Consolidated (4,6) Sales volumes (litres 000) Net interest-bearing borrowings Interest-bearing borrowings Non-current Current Cash and cash equivalents ( ) ( ) ( ) 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 and associates ( ) (18 794) (23 939) Proceeds from financial assets Purchases of intangible assets (2 925) (2 425) (41 791) Acquisition of subsidiaries, net of cash acquired (7 971) (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. DISTELL GROUP LIMITED 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 COMPANY SECRETARY: L Malan REGISTERED OFFICE: Aan-de-Wagenweg, Stellenbosch 7600 TRANSFER SECRETARIES: Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg, PO Box 61051, Marshalltown 2107 SPONSOR: RAND MERCHANT BANK (A division of FirstRand Bank Limited) WEBSITE: GREYMATTER & FINCH # 9360