NZK 1H17 Half Year Results Announcement

Media Release
1 March 2017

NEW ZEALAND KING SALMON DECLARES 2.0 CPS INTERIM DIVIDEND, ON TRACK TO
ACHIEVE FULL YEAR FORECAST EARNINGS

A successful branding and market positioning strategy underpins growth for New Zealand King Salmon
Investments Ltd (NZKS), which today reported its half year result for the six months to 31 December
2016 (1H17). The Board affirms its full year FY17 forecast as presented in its Product Disclosure
Statement dated 23 September 2016.

Key highlights include:
 Net profit after tax of $8.7 million, up 52% on the comparable six month period to 31 December
2015 (1H16)
 Pro forma operating EBITDA of $7.3 million
 3,400 metric tonnes of gilled and gutted salmon sold, up 13% on 1H16
 Volumes exported up 19% on 1H16
 Successful IPO on the NZX Main Board and ASX raising $30 million to fund capital and
working capital investment associated with our new sea farms and requisite processing
infrastructure
 Premium branded strategy continues to drive demand in excess of available supply,
underpinning improved value
 Salmon farming now underway at all three new sea farms
 First harvest from two of our three new sea farms
 Sales programme to China implemented in partnership with shareholder China Resources Ng
Fung Ltd
 Successful launch of pet food range Omega Plus in South Island test market in September

“The first four months since listing have given us a good platform for future growth” said Chairman
John Ryder. “We are positive about the future of the company and its global potential, and we are on
track with our investment in new farm capacity and operational upgrades to support our strategy,” he
added.

The company continues to execute on its premium branded export plans, said Managing Director and
CEO Grant Rosewarne. “Strong growth in export volumes, up 19%, confirms market receptiveness to
this strategy, while the company is developing additional pathways to unlock further export sales
growth. Over the past six months, we have added retail and marketing expertise to our North
American team to drive business development in supermarket channels, successfully initiated sales to
China with our strategic partner and shareholder China Resources Ng Fung Ltd, and finalised our
single harvest method, thus opening up exports to Europe and improving operational efficiencies.”

Mr Rosewarne added that the company has achieved steady growth from domestic activities, with 10%
growth in sales volumes.

The company continues to develop farming and environmental management practices to optimise
production and improve environmental outcomes. In January 2017, the Minister for Primary Industries
commenced a consultation process on the proposal to relocate up to six salmon farms from their
historic locations (up to 30 years old) to more suitable higher water flow sites. Mr Rosewarne said the
company is supportive of the independent process. “In our view, a successful outcome will generate
significant positive environmental, social and financial benefits for all stakeholders, including our Top of
the South community.”

Mr Ryder noted that the company anticipates providing an update on key fish performance metrics
once we are past the summer period. “The Board believes the company is on track to achieve FY17
prospective financial information as disclosed in our Product Disclosure Statement, excluding costs
relating to the MPI proposed farm relocation initiative. NZKS will be paying a fully imputed interim
dividend of 2.0 cents per share on 24 March 2017.”
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The NZKS Board is also pleased to announce that Ms Wang Xin, Director of China Resources Ng
Fung Ltd, has been appointed a non-executive director of NZKS with immediate effect. China
Resources Ng Fung Ltd purchased a 9.99% shareholding in NZKS as part of the recent IPO. In
accordance with NZX Listing Rules 3.3.2 and 3.3.3(b), the Board has determined that Ms Wang is a
non-independent director of NZKS.

NZKS issued its Product Disclosure Statement in September 2016 and shares began trading on the
NZX Main Board and ASX on 19 October 2016 under the “NZK” ticker.
<ENDS>

Contacts:
Grant Rosewarne, Managing Director and CEO, New Zealand King Salmon Investments Ltd
email: grant.rosewarne@kingsalmon.co.nz

About New Zealand King Salmon
New Zealand King Salmon is the world’s largest aquaculture producer of the premium King salmon
species. We operate under our four key brands: Ōra King, Regal, Southern Ocean, and Omega Plus,
and the New Zealand King Salmon label. We have been growing and selling salmon to consumers for
more than 30 years. Today we employ more than 400 people. More information can be found at
www.kingsalmon.co.nz

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In the Product Disclosure Statement dated 23 September 2016, NZKS forecast it would pay a dividend of 3.6
cents per share for FY17 in two equal instalments. The Board has chosen to round the interim dividend up to
the nearest whole number of cents per share, however, the total forecast dividends for FY17 remain in line with
those set out in the Product Disclosure Statement.

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New Zealand King Salmon Investments Limited
NZX Appendix 1
Results for announcement to the market

Reporting Period 6 months to 31 December 2016
Previous Reporting Period 6 months to 31 December 2015

6 months ended
31 December
2016

$’000
6 months ended
31 December 2015


$’000
Percentage change
Revenue from ordinary activities $NZ63,626 $NZ56,598 12.4%
Profit (loss) from ordinary activities after
tax attributable to security holder
$NZ8,705 $NZ5,736 51.8%
Net profit (loss) attributable to security
holders
$NZ8,705 $NZ5,736 51.8%

Dividend to shareholders Amount per share Imputed amount
per share
Interim – 2017 Financial Year $0.020 $0.007780
Record Date 15 March 2017
Dividend Payment Date 24 March 2017

Net Tangible Assets 31 December 2016

31 December 2015

Number of Shares 138,157,843 110,191,381
Net Tangible Assets per share $1.08 $1.09


Audit The interim financial statements attached to this report have
not been audited.

Comments: A brief Please refer to the attached report for commentary on the
results.

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numbernumber
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state whether:Taxable
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non-renouncable
change
x
whether:
Interim
x
YearSpecialDRP Applies
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ORexplanation
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Source of
Amount per securityPayment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
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Notice DateAllotment Date
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conversion notices mailedMust be within 5 business days
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OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
15 March, 201724 March, 2017
NZ Dollars$0.003529
$0.020
Date Payable
24 March, 2017
$$0.001389$0.007778
$
In dollars and cents
Retained Earnings
$0.020
Enter N/A if not
applicable
Ordinary SharesNZNZKE0003S0
EMAIL: announce@nzx.com
Notice of event affecting securities
1
New Zealand King Salmon Investments Limited
Andrew ClarkDirectors' resolution
03 548 571403 538 087428022017