MOA to acquire on premise assets

21 December 2018

MOA SIGNS DEAL TO BREAK THROUGH TO PROFITABILITY AND FAST TRACK GAINS IN
CRUCIAL ON-PREMISE CHANNEL

Moa Group Ltd (NZX; MOA) today announces a conditional agreement to purchase one of New
Zealand’s largest Bar and Restaurant ( On-Premise ) businesses - Savor Group.

In the recent AGM Moa shared the group’s five key strategies. One of those was ensuring the
brand can successfully access valuable on premise venues across New Zealand. In recent months
the business has secured three significant pourage deals and this acquisition further adds to
meeting the objectives of this strategy.

Moa is the largest New Zealand owned brewer and is currently the fastest growing craft beer
in supermarkets, growing at more than four times the rate of the NZ craft beer market. It is also
the only brand in the top four craft beer brands delivering growth
1
. This has been driven by
new product development and Moa’s distribution deal with Constellation Brands.

Savor Group is a premiere Auckland based hospitality venture with a collection of bars and
restaurants such as Ostro, Seafarers, Ebisu, Azabu, Fukuko, & Las Vegas. This week Savor Group
further strengthened its market position and extended its footprint with the opening of 3 new
eateries and a central bar in Sanford’s new Auckland Fish Market on North Wharf, next to what
will become the new Americas Cup village.

Moa expects the acquisition to be accretive to earnings with a contribution of $3.6m EBITDA in
its first full financial year.

The base purchase price is $13m. The purchase price will be satisfied via a combination of 60%
cash and 40% Moa shares issued at a 20 trading day VWAP prior to settlement. The parties
have agreed to an additional payment of $5.4m payable in 12-24 months’ time if mutually
agreed growth strategies are delivered. Again this payment will be satisfied by a combination
of 60% cash and 40% Moa shares at the same price determined for the initial settlement.

Further there is also provision for additional earnout payments of $750,000 to $3m to be
satisfied in Moa shares issued at the settlement price if the average EBITDA for the acquired
businesses in the next two financial periods is in the range $4m to $6m. Correspondingly the
base purchase price would be reduced by a requirement for the vendors to deliver $750,000
to $3m of Moa shares at the settlement price back to Moa for cancellation if the average
EBITDA for the acquired businesses in the first two financial years post settlement falls below
$3m.


1
Ac Nielsen TSM ¼ 18/11/18).

The deal is anticipated to close to triple Moa’s revenue and take the group into sustainable
profitability.

Over the coming years this platform should enable Moa’s brands to strengthen their presence
through these venues and for new initiatives to be developed to further create value and to
leverage the significant experience of the newly formed team. Moa will continue as it recently
has to pursue pourage agreements for its brands outside of its own hospitality venues.

Moa’s most recent half year announcement advised that Moa plans to be breakeven in the
second half of this financial year. At this point Moa continues to be on track.

Geoff Ross, Moa Executive Chairman says “There could be no better partner to build additional
brand presence for Moa than Savor Group. Whilst we have seen strong growth in supermarkets
a vital channel for us to add is bars and restaurants. These will add greater volume, present our
brand to the right audience and create a true Moa experience. We not only see the opportunity
to grow the Moa brand but also to further build hospitality venues together.”

Lucien Law who founded Savor Group and has significant advertising experience will become
an executive Director for the Moa group. Law will work across the Hospitality Venues and the
Moa Brand as well as developing new concepts. Long-time shareholder of Savor Group and
business partner Paul Robinson will join Law on the board of Moa as an Executive Director. Paul
has come back from New York after years in senior roles in investment banking.

Lucien Law says “We are excited to be working together on the development of our new venue
- Auckland Fishmarket which has Moa as our exclusive craft beer and cider partner. I see
significant opportunities to further grow and strengthen the presence, reach and profitability of
the combined Group”.

Moa is being advised by Foster Capital. The deal is conditional on shareholder approval,
confirmation of finance and receipt of third party consents in late February 2019. A shareholder
vote will likely be in early February next year, which will then be followed by a rights issue.
The deal is planned to be funded by a mix of bank debt, new equity and the rights issue and
aims to settle by the end of February 2019. More details on the proposed rights issue will be
advised in the New Year.

For more information contact.

Geoff Ross

geoff@moabeer.com

021 424 219