LIC posts half year result

Private Bag 3016
Hamilton 3240
New Zealand
0800 651 156
www.lic.co.nz
LIC is the trading name of Livestock Improvement Corporation Limited
9February 2017
Market statement
LIC posts half year result
Livestock Improvement Corporation (NZX: LIC)has announceditshalfyear result for the six
months ended 30 November 2016.
LIC’stotalrevenue for the six monthperiodwas $131million, 9.6per centdown on the same
period last year.However,net profit after tax(NPAT)was $19.3million,up21per centfrom the
previous year.
Chairman Murray King said it’s been a tough environment on farm for the past couple of years and,
as a key partner to farmers, LIC had also weathered the storm and was in good shape to face the
challenges ahead.
He said the improvementin profitability inLIC’s halfyear results was pleasing.
King said these results reflect the co-op’s solid performance inartificial breeding (AB)and herd
testing, as farmers continued to invest in solutions that delivereda return for their businesses.The
result also reflected some tough but necessary costreduction measures within the business.
He said while the downturn had reduced the overall national herd number, the genetics LIC
selected and supplied to farmers were responsible for breeding more than three-quartersof the
national herd, withsales similar to those achievedlast yearresulting in an increased market share.
“The genetic gain and value that LIC bulls deliver on New Zealand dairy farms continues to be
confirmed in recentRanking of Active Sires (RAS) lists, with LIC bulls regularly occupying 25 or
more of the top 30 listed Breeding Worth (BW) All Breeds bulls.”
Demand for LIC’s herd testing services also rebounded, with salesup on the same time last year.
King said LIC had continued its transformation programme to protect and grow the co-op.
“We’ve scrutinised every part of the business to actively manage and minimise our operating costs,
and look for better ways of doing business, withminimalimpact to farmersor where possible
improving it. This focuswill continue through the rest of the yearand beyond.
“Some of theinitiatives that our farmers will beaware of include optimisation of AB Technician
routes which will reduceour fuel bill by 1.3million kilometres and increasethe time AB Technicians
spend on farm,moreuse of digital publicationsand offering farmers an additional source of income
from sought after value-added Wagyu beef semen.”
Summary, Half Year Result
LIC’srevenue and other income for the six months to 30 November 2016was $131million, 9.6%
down on the $145million achieved during the same period in 2015.Net profit after tax for the half
year was $19.3million,up 21% from the previous year.

Page2of2
LIC’s business, particularly artificial breeding (AB), is highly seasonal. Half year results incorporate
the majority of AB revenues but not a similar proportion of total costs, and are therefore not
indicative of the second half, nor the full year, result.No dividend is therefore declared at half year.
The business is currently forecasting a return toa modest level of profitabilityfor the full year.
LIC continues to operate a strong balance sheet with total assets including cash, software, land
and buildingsand bull teams of $355million. Cash flows from operationswere negative$433,000
which,compared tonegative $17 millionlast year,reflectstrongercash collections despite lower
sales levels andalsoreflectdecreased operating costs.
-ENDS
Media contact:Simon O’Rourke|sorourke@lic.co.nz|027 681 1944.
About LIC
LIC is a New Zealand dairy farmer-owned co-operative that provides a range of services and solutions that
focus on improving the productivity and prosperity of its farmers. This includes dairy genetics, information
technology, herd testing, DNA parentage verification and farm advisory services through FarmWise. LIC’s
operations are structurally separated into two businesses–LIC the co-operative which runs the genetics and
herd improvement operations and wholly-owned subsidiary LIC AgritechnologyCompany Limited which runs
the agritechnology operations (including information technology systems and farm automation). With origins
dating back to 1909, LIC has a long history of world-leading innovations for the dairy industry. Today the
New Zealand-based co-operative employs more than 600 permanent staff, swelling to 2,000 during the peak
dairy mating season. LIC also has subsidiaries in the United Kingdom, Ireland and Australia and agencies in
South America, the US, Asia and South Africa. For more information:www.lic.co.nz

---

Livestock Improvement Corporation Limited (LIC)
INTERIM FINANCIAL STATEMENTS
for the Six Months Ended 30 November 2016

Income Statement
for the six months ended 30 November 2016
In thousands of New Zealand dollarsNote
6 months to
30 Nov 2016
6 months to
30 Nov 2015
12 months to
31 May 2016
UnauditedUnauditedAudited
Revenue
4130,326142,715205,058
Other income
7581,9275,673
Purchased materials
(14,786)(24,993)(37,451)
Staff expenses
(52,476)(55,686)(92,994)
Depreciation
(5,079)(5,465)(11,034)
Amortisation
(8,661)(6,755)(13,558)
Other expenses
(21,750)(28,178)(53,610)
28,33323,5642,085
Finance income
63114896
Finance expenses
(1,455)(1,201)(1,827)
Fair value adjustments - elite biological assets
- - (5,144)
Profit/(loss) before taxation26,94122,477(3,991)
- - 1,440
Tax - other
(7,647)(6,585)(1,464)
Total tax expense
(7,647)(6,585)(24)
Profit/(loss) for the period19,29515,892(4,015)
Profit/(loss) attributable to:
Owners of the Company19,01815,980(3,953)
Non-controlling interests
277
(88)(61)
19,29515,892(4,015)
Earnings per share
Basic and diluted earnings per investment share (NZ dollars)0.6530.538(0.136)
Profit/(loss) for the period
19,29515,892(4,015)
(Profit)/loss on fair value adjustments - elite biological assets
- - 5,144
- -
(1,440)
19,29515,892(312)
`
Supplementary note to the Income Statement
Tax effect on (profit)/loss on fair value adjustments - elite biological
assets
Earnings before finance activities, taxation and fair value
adjustments - elite biological assets
Tax on fair value adjustments - elite biological assets
Underlying net earnings/(loss) excluding fair value
adjustments - elite biological assets and tax thereon
Page 1 of 13

Statement of Comprehensive Income
for the six months ended 30 November 2016
In thousands of New Zealand dollars
6 months to
30 Nov 2016
6 months to
30 Nov 2015
12 months to
31 May 2016
UnauditedUnauditedAudited
Profit/(loss) for the period
19,29515,892(4,015)
Other comprehensive income (net of income tax)
Items that may be reclassified to the Income Statement in future periods:
(49)(8)(201)
820
-
655
Items that will not be reclassified to the Income Statement in future periods:
- -
1,709
771(8)2,163
Total comprehensive income/(loss) for the period20,06515,884(1,852)
Total comprehensive income/(loss) attributable to:
Owners of the Company19,78815,972(1,791)
Non-controlling interests277(88)(61)
Total comprehensive income/(loss) for the period20,06515,884(1,852)
Effective portion of changes in fair value of cash flow hedges
Other comprehensive income/(loss) for the period (net of tax)
Net change in fair value of available for sale financial assets
Revaluation of fixed assets
Page 2 of 13

Balance Sheet
as at 30 November 2016
In thousands of New Zealand dollars
As at 30 Nov
2016
As at 30 Nov
2015
As at 31 May
2016
UnauditedUnauditedAudited
Assets
Fixed assets80,14893,78492,307
Held for sale fixed assets6,524- -
Intangible assets76,82670,59579,655
Biological assets 87,51192,65587,511
Investments & derivatives4,4402,6463,346
Total non-current assets255,448259,680262,819
Cash & cash equivalents4,73611,8772,667
Inventories13,44613,74014,617
Biological assets 2,4472,4732,393
Investments & derivatives- 250-
Trade receivables73,90382,64438,028
Prepayments5,4897293,132
Total current assets100,022111,71360,836
Total assets355,470371,393323,655
Equity
Share capital58,46458,46458,464
Reserves32,55329,61131,782
Retained earnings139,720140,637120,703
Equity attributable to Owners of the Company230,737228,712210,949
Non-controlling interests285(19)8
Total equity 231,022228,693210,957
Liabilities
Provisions5,7655,7655,829
Term loans15,000- 10,000
Deferred tax liability31,16231,93531,187
Total non-current liabilities51,92737,70147,016
Co-operative Control Shares6,2636,8386,797
Derivatives98- 16
Trade & other payables18,97222,87122,796
Bank loans & borrowings36,56266,31832,771
Provision for tax7,2585,965477
Provisions3,3673,0092,825
Total current liabilities72,521104,99965,683
Total liabilities124,448142,700112,698
Total equity and liabilities355,470371,393323,655
Director
Director
Date: 9 February 2017
Date: 9 February 2017
Page 3 of 13

Statement of Cash Flows
for the six months ended 30 November 2016
In thousands of New Zealand dollarsNote
6 months to
30 Nov 2016
6 months to
30 Nov 2015
12 months to
31 May 2016
UnauditedUnauditedAudited
Net cash from/(used in) operating activities
6
Cash provided from:
Receipts from customers
92,57293,756201,396
Sale of biological assets281274787
Finance income received
63114295
92,91694,144
202,478
Cash applied to:
Payments to suppliers and employees
(91,601)(107,938)(184,008)
Finance expense paid
(856)(720)(1,024)
Income tax paid
(892)(2,965)(3,010)
(93,349)(111,623)(188,042)
(433)(17,479)14,436
Net cash from/(used in) investing activities
Cash provided from:
Sale of shares
- 5454
Sale of fixed assets
438309644
438363
698
Cash applied to:
Acquisition of subsidiary - net of cash acquired
- -
(6,493)
Acquisition of shares
(273)(63)
(208)
Acquisition of intangibles
(5,831)(12,057)
(21,511)
Acquisition of fixed assets
(212)(10,867)
(12,707)
(6,316)(22,986)(40,919)
(5,878)(22,623)(40,221)
Net cash from/(used in) financing activities
Cash provided from:
Co-operative Control Shares paid up
8211,2271,227
Bank loans & borrowings
9,00055,65032,417
9,82156,877
33,644
Cash applied to:
Repurchase of Co-operative Control Shares
(1,355)(863)(904)
Dividends paid to Shareholders of the Group
- (5,984)(5,983)
Interest paid on Co-operative Control Shares
- (628)(628)
(1,355)(7,475)(7,515)
8,46749,40226,129
Net increase/(decrease) in cash balances2,1569,299344
Cash balances at beginning of period
2,6672,523
2,523
Effect of exchange rate changes on cash held
(87)54
(201)
Closing cash balances4,73611,8772,667
Page 4 of 13

Statement of Changes in Equity
for the six months ended 30 November 2016
LIC Investment
Shares
Foreign Currency
Hedge Reserve
Available for Sale
Asset Reserve
Revaluation
Reserve
Retained
Earnings
Non Controlling
interests
Total Equity
unauditedunauditedunauditedunauditedunauditedunauditedunaudited
Balance at 1 June 201558,464
160143
29,316130,64069218,792
----
15,980(88)15,892
-
(8)
----
(8)
- (8)
-
---(8)
- (8)
-
-15,980(88)15,884
--
-
-(5,983)-(5,983)
----(5,983)-(5,983)
58,464152143
29,316
140,637(19)228,693
auditedauditedauditedauditedauditedauditedaudited
58,464
160143
29,316130,64069218,792
----
(3,953)(61)(4,015)
-
(201)
----
(201)
--
655
---
655
---1,709--
1,709
-(201)6551,709
-
-2,163
-(201)6551,709(3,953)(61)(1,852)
----(5,983)-(5,983)
----(5,983)-(5,983)
58,464(41)79831,025120,7048210,957
Balance at 30 November 2015
Balance at 1 June 2015
Effective portion of changes in fair value of cash flow hedges
Total contributions by and distributions to owners
Transactions with owners, recorded directly in equity
Total comprehensive income/(loss) for the period
Dividends to equity holders
Contributions by and distributions to owners
Dividends to equity holders
Net change in fair value of available for sale financial assets
Other comprehensive income
Total other comprehensive income/(loss)
Transactions with owners, recorded directly in equity
Effective portion of changes in fair value of cash flow hedges
Revaluation of property plant and equipment
In thousands of New Zealand dollars
Total comprehensive income for the period
Profit/(loss) for the year
Profit/(loss) for the period
Other comprehensive income
Total comprehensive income for the year
Contributions by and distributions to owners
Total other comprehensive income/(loss)
Total comprehensive income/(loss) for the year
Total contributions by and distributions to owners
Balance at 31 May 2016
Page 5 of 13

Statement of Changes in Equity (continued)
for the six months ended 30 November 2016
LIC Investment
Shares
Foreign Currency
Hedge Reserve
Available for Sale
Asset Reserve
Revaluation
Reserve
Retained
Earnings
Non Controlling
interests
Total Equity
unauditedunauditedunauditedunauditedunauditedunauditedunaudited
58,464
(41)798
31,025120,7048210,957
----19,01827719,295
-(49)---(49)
--
820
--
820
-(49)820---771
-(49)820-19,01827720,066
------
-
-------
58,464(90)1,61831,025139,722285231,023
Profit/(loss) for the period
Effective portion of changes in fair value of cash flow hedges
Other comprehensive income
Total comprehensive income for the period
In thousands of New Zealand dollars
Net change in fair value of available for sale financial assets
Balance at 30 November 2016
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Dividends to equity holders
Total contributions by and distributions to owners
Balance at 1 June 2016
Total other comprehensive income/(loss)
Total comprehensive income/(loss) for the period
Page 6 of 13

Notes to the Interim Financial Statements
1.
Accounting entity
2.
Accounting policies



ThesefinancialstatementshavebeenpreparedinaccordancewithNewZealandGenerallyAcceptedAccounting
Practice('NZGAAP')asappropriateforprofitorientedentities;whichinthecaseoftheGroupistheNewZealand
equivalenttoInternationalAccountingStandard34.TheInterimFinancialStatementsshouldbereadinconjunctionwith
theannualreportfortheyearended31May2016.Theaccountingpoliciesappliedareconsistentwiththoseusedinthe
comparativeperiod(thesixmonthsto30November2015)andinthe(audited)annualreportfortheyearended31May
2016.
LivestockImprovementCorporationLimited('LIC'orthe'Parent')isacompanydomiciledinNewZealand,registered
undertheCompaniesAct1993andtheCo-operativeCompaniesAct1996,andlistedontheAlternativeBoardofthe
NewZealandStockExchangeLimited('NZAX').TheParentisanFMCreportingentityforthepurposesoftheFinancial
Reporting Act 2013 and the Financial Market Conducts Act 2013. Its financial statements comply with these Acts.
ThesefinancialstatementsofLIC,asatandforthesixmonthsended30November2016,compriseLICandits
subsidiaries (together referred to as the 'Group').
Page 7 of 13

Notes to the Interim Financial Statements
3. Operating Segments
Information about reportable segments
- Herd Testing. The provision of herd testing and animal recording for pastoral farmers.
- Farm Automation. Includes the provision of dairy automated technologies from LIC Automation Ltd, including Protrack.
TheGrouphasidentifieditsChiefOperatingDecisionMaker(CODM)tobeitsChiefExecutive(CE).ThishasbeendeterminedonthebasisthatitistheCEwhodecidestheallocationofresourcestosegmentsandassessestheir
performance.
TheGrouphasdeterminedithasfouroperatingsegmentswhicharereportable,allotheroperatingsegmentshavebeenincludedin'Othersegments'.Thefourreportablesegmentswhicharedescribedbelow,aretheGroup's
strategic business :
TheoperatingsegmentsoftheGrouphavebeendeterminedonthecomponentsoftheentitythattheCODMmonitorsinmakingdecisionsaboutoperatingmatters.Suchcomponentshavebeenidentifiedonthebasisofinternal
reports the CODM reviews regularly in order to allocate resources, and to assess the performance of the Group.
- NZ Markets Genetics. Is the provision of bovine genetic breeding material and related services predominately to dairy farmers.
External revenue from the sale of goods in farm automation is recognised in profit or loss in proportion to the stage of completion of the transaction with reference to milestones.
ExternalrevenuefromprovisionofgoodsandservicesinNZmarketgenetics,herdtesting,farmsoftwareandothersegmentsisrecognisedinprofitorloss,measuredatthefairvalueoftheconsiderationreceivedorreceivable,netof
returnsandallowances,tradediscountsandvolumerebates.Revenueisrecognisedwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer,recoveryoftheconsiderationisprobable,theassociated
costs and possible return of goods can be estimated reliably and there is no continuing management involvement with the goods.
- Farm Software. Includes the provision of data recording and farm management information services.
Otheroperatingsegmentsincludeinternationaloperations,supportservices,research&development,diagnostics,animalhealth&treatmentservices,LICDeerLtd,animalevaluationandleadershipandgovernancesupportservices
for the Group. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2016 or 2015.
Informationregardingtheoperationsofeachreportablesegmentisincludedbelow.Performanceismeasuredbasedonsegmentgrossmarginbeforeadministrativeandotherfixedcosts,interest,financeexpensesandincometax.
SegmentgrossmarginisusedtomeasureperformanceastheCODMbelievesthatsuchinformationisthemostrelevantinevaluatingtheresultsofcertainsegments.Thestrategicbusinessunitsofferdifferentproductsandservices
and are managed separately because they require different technology and operational strategies.
Page 8 of 13

Notes to the Interim Financial Statements
3. Operating Segments (continued)
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
201620152016201620152016201620152016201620152016201620152016201620152016201620152016
In thousands of New Zealand dollars
Audited Audited Audited Audited Audited Audited Audited
External revenues
70,56776,89082,6319,7359,12122,12119,79219,44840,16611,76811,99817,061111,862117,457161,97919,22227,18448,752- - -
Inter-segment revenue- - - - - - - - - 1,0060921,0060929421,0133,292(1,948)(1,013)3,384
Total Revenue70,56776,89082,6319,7359,12122,12119,79219,44840,16612,77411,99817,153112,868117,457162,07120,16428,19852,044(1,948)(1,013)3,384
Reportable segment profit before income tax44,03847,77249,0553,6973,0385,31315,04213,60025,1528,2385,5177,20171,01569,92886,72020,80014,81428,245- - -
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
201620152016
Audited
131,084144,641210,731
- - -
Total Revenue
131,084144,641210,731
91,81584,742114,965
Unallocated amounts:
(63,481)(61,178)(112,831)
(1,392)(1,087)(931)
Impairment
- - (50)
- -
(5,144)
26,94122,477(3,991)
UnauditedUnauditedUnaudited
Total
Unaudited
UnauditedUnauditedUnauditedUnaudited
In thousands of New Zealand dollars
Fair value adjustments - elite biological assets
Profit/(loss) before income tax
Reportable segment profit before income tax
External revenues
Inter-segment revenue
Other finance income/expenses
Permanent and non seasonal Personnel, Operating and Overheads
EliminationsHerd TestingTotal Reportable SegmentsOtherNZ Market GeneticsFarm SoftwareFarm Automation
Page 9 of 13

Notes to the Interim Financial Statements
4.Seasonal nature of business
5.Fixed assets
In thousands of New Zealand dollars
6 months
to 30 Nov
2016
6 months
to 30 Nov
2015
12 months
to 31 May
2016
UnauditedUnauditedAudited
Acquisitions68510,92214,134
Disposals1,8221,8148,769
6.
Reconciliation of the profit/(loss) for the period with the net cash from operating activities
In thousands of New Zealand dollars
6 months
to 30 Nov
2016
6 months
to 30 Nov
2015
12 months
to 31 May
2016
UnauditedUnauditedAudited
Profit/(loss) for the period19,29515,892(4,015)
Adjustments for:
Depreciation5,0795,46511,034
Amortisation8,6616,75513,558
Change in deferred taxation(25)(235)(983)
Change in fair value of elite biological assets- - 5,144
Impairment - - 50
Gain/(loss) on sale of fixed assets(328)(167)(332)
13,38611,81928,470
Change in inventories (increase)/decrease1,171(578)(1,455)
Change in trade receivables (increase)/decrease(35,875)(50,435)(5,819)
Change in biological assets (increase)/decrease(54)(59)20
Change in other current assets (increase)/decrease(2,357)1,383(968)
Change in trade & other payables increase/(decrease)(3,824)(511)(586)
Change in provisions increase/(decrease)7,3244,401(1,269)
Items reclassified to/from Investing/Financing activities50260858
(33,113)(45,191)(10,019)
Net cash from operating activities(433)(17,479)14,436
7.Capital commitments
8.Events subsequent to reporting date
There have been no significant events subsequent to the reporting date.
LIC'sbusiness,particularlytheParent'sartificialbreedingbusiness,ishighlyseasonal.Novemberresults,sincethey
incorporatethemajorityoftheartificialbreedingrevenuesbutnotasimilarproportionoftotalcosts,arenotindicativeof
the second half result nor, therefore, the full year result.
Asat30November2016theGrouphadenteredintocontractstopurchasefixedandintangibleassetsfor$1.049million
(30 November 2015: $2.461 million; 31 May 2016: $0.540 million).
Page 10 of 13

Notes to the Interim Financial Statements
9.
Related parties
Transactions with key management personnel
Key management personnel compensation comprised:
In thousands of New Zealand dollars
6 months
to 30 Nov
2016
6 months
to 30 Nov
2015
12 months
to 31 May
2016
UnauditedUnauditedAudited
Short term employee benefits1,6101,4473,018
Defined contribution superannuation plans256094

1,6351,5073,112
Transaction valueBalance outstanding
6 months
to 30 Nov
2016
6 months
to 30 Nov
2015
12 months
to 31 May
2016
6 months
to 30 Nov
2016
6 months
to 30 Nov
2015
12 months
to 31 May
2016
UnauditedUnauditedAuditedUnauditedUnauditedAudited
Sale of goods and services
814
939
2,059332583282
10.Audit
11.Contingencies
12.Equity securities
13.Dividend
14.Net tangible assets per investment share
15.
Fair Value
Determination of fair values
(a)
Land and buildings
In thousands of New Zealand dollars
1,354,747 Co-operative Control Shares have been repurchased during the period.
InaccordancewiththeFinancialReportingAct2013theseinterimfinancialstatementsarenotrequiredtobeaudited.Inline
with previous years these interim financial statements have not been audited.
Inthenormalcourseofbusiness,theGroupissubjecttoclaimsagainstit.Allcurrentclaimsarecontestedanddefended.
Noprovisionhasbeenmadeinthesefinancialstatements,asdirectorsexpectthatthepossibilityofanymaterialoutflow
in settlement is remote.
Sale of goods and services on normal trade
terms to Directors and key management
personnel
821,437 Co-operative Control Shares have been issued during the period.
NodividendwasdeclaredbyLICinrelationtothe2016financialyear.Inrelationtothe2015financialyearLICdeclared
adividendof9.15cperCo-operativeControlShareand20.26cperInvestmentShare,paidtoshareholderson22August
2015. No other dividends have been declared in the period.
Asat30November2016nettangibleassetsperinvestmentSharewere$5.22(asat30November2015theywere
$5.35).
AnumberoftheGroup’saccountingpoliciesanddisclosuresrequirethedeterminationoffairvalue,forbothfinancialand
non-financialassetsandliabilities.Fairvalueshavebeendeterminedformeasurementand/ordisclosurepurposesbased
onthefollowingmethods.Whereapplicable,furtherinformationabouttheassumptionsmadeindeterminingfairvaluesis
disclosed in the notes specific to that asset or liability.
Thefairvalueoflandandbuildingsisbasedonmarketvalues.Fairvaluesoflandhavebeendeterminedby
usingadirectcomparisonmethodologyandthefairvalueofbuildingshavebeendeterminedbyusinga
capitalised rental methodology. Land and Buildings would fall under level 2 in the fair value hierarchy.
Page 11 of 13

Notes to the Interim Financial Statements
15.
Fair Value (continued)
(b)Biological assets
(c)Fair value hierarchy
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Thetablebelowanalysesfinancialinstrumentscarriedatfairvalue,byvaluationmethod.Thedifferentlevels
have been defined as follows:
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(i.e., as prices) or indirectly (i.e., derived from prices).
Thefairvalueoflivestockheldfortradingisbasedonthemarketpriceoflivestockofsimilarage,breedand
genetic make-up. This livestock would fall under level 2 in the fair value hierarchy.
Thefairvalueofelitebulls,forwhichthereisnoactivemarket,isdeterminedusingadiscountedcashflow
approach. The elite bull team would fall under level 3 in the fair value hierarchy.
Page 12 of 13

Notes to the Interim Financial Statements
15. Fair Value (continued)

6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
201620152016201620152016201620152016201620152016
In thousands of New Zealand dollars Audited Audited Audited Audited
Derivatives - designated at fair value through profit or loss
- - - (98)250(16)- - - (98)250(16)
Available for sale financial assets
1,3071,0571,2952,9711,3581,8891622131624,4402,6283,346
There have been no transfers between levels in either direction during the period
Level 1Level 3Total
Unaudited

Level 2
UnauditedUnauditedUnaudited
Page 13 of 13

---

Reporting Period6months to30 November 2016
Previous Reporting Period6months to30 November 2015
Amount (000's)Percentage change
Revenue from ordinary activities$NZ130,326-8.68%
Profit (loss) from ordinary activities after
tax attributable to security holders
$NZ19,29521.41%
Net profit (loss) attributable to security
holders
$NZ19,29521.41%
Interim/Final DividendAmount per securityImputed amount per security
Interim Dividend
Record DateNot Applicable
Dividend Payment DateNot Applicable
Comments:
LIVESTOCK IMPROVEMENT CORPORATION LIMITED
Results for announcement to the market
An interim dividend has not been
declared
These results reflect the highly seasonal nature of the business
activity and are not indicative of the second half, nor the full year
result.