NZK 1H17 Interim Report

New Zealand King Salmon
Investments Limited
and Subsidiaries
INTERIM
FINANCIAL
REPORT
FOR THE SIX MONTHS ENDED
31 DECEMBER 2016

CONTENTS
4
5
6
7
8
9
10
18
DIRECTORS’ REPORT
CORPORATE INFORMATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
REVIEW REPORT
3
INTERIM FINANCIAL REPORT

FINANCIAL PERFORMANCE
The six month period ending 31 December 2016 marks a new
milestone in the evolution of New Zealand King Salmon with the
successful Initial Public Offering (IPO) on the New Zealand and
Australian stock exchanges in October 2016. Through this process,
New Zealand King Salmon raised $30 million in new equity to
invest in production capacity and working capital to establish and
grow our new sea farms, and to carry out improvements in our
existing processing and aquaculture infrastructure.
Net profit after tax was $8.7 million compared to $5.7 million for
the six months to 31 December 2015, an increase of 52%.
This increase was due to additional sales volumes available from
our new sea farms and fair value gains associated with the
increase in biomass at sea compared to the same time a year
ago. For the six month period the total volume sold was 3,407
metric tonnes, which is 405 metric tonnes above sales for the prior
comparable period, an increase of 13%. The total biomass of fish
at sea was up by 22% on the same time a year ago, principally
due to the introduction of new sea farms.
DIRECTORS’ REPORT
FOLLOWING THE COMPLETION OF THE
SIX MONTH PERIOD TO 31 DECEMBER
2016 (1H17), THE BOARD IS PLEASED TO
CONFIRM A STRONG FINANCIAL RESULT,
SUPPORTED BY NEW ZEALAND KING
SALMON’S BRANDING AND MARKET
POSITIONING STRATEGY ALONGSIDE ON-
TARGET FISH PERFORMANCE. THE BOARD
AFFIRMS ITS FULL YEAR FY17 FORECAST AS
PRESENTED IN ITS PRODUCT DISCLOSURE
STATEMENT DATED 23 SEPTEMBER 2016.
Pro forma operating EBITDA was $7.3 million. Pro forma operating
results reverse out the impact of fair value gains, non-recurring
costs relating to New Zealand King Salmon’s IPO, the closing out of
redundant interest rate swaps, and costs incurred in relation to the
Ministry for Primary Industry’s consultation process for the possible
relocation of six Marlborough salmon farms.
The Board is pleased to advise that a fully imputed interim dividend
of 2.0 cents per share has been declared and will be paid on
24 March 2017.
BUSINESS UPDATE
Our premium branded strategy continues to drive demand in
excess of available supply. This underpins improvements in value as
well as generating stronger customer loyalty, as we experience a
significant increase in salmon production volumes.
During the period we made a number of positive steps towards
executing our strategy, including significant production and sales
developments.
Sales Developments
From a sales and marketing perspective, we have been actively
developing branded sales leads with current and new customers
to match expected production volumes over the medium term.
New channel development in existing markets has also been a
feature – for example, over the past six months we have added
retail and marketing expertise to our North American team to
support existing business but also to drive business development
in supermarket channels for the Regal brand. We also commenced
an Ōra King sales programme to China in partnership with China
Resources Ng Fung Ltd. Finally, we launched our premium
pet food brand Omega Plus in South Island supermarkets. Omega
Plus, whilst still in its early stages, intends to improve whole-of-fish
value for us by enabling us to convert by-products into high value
branded pet food products.
We consider that the strong growth in export volumes achieved,
which were up 19% on the prior comparable period, confirm the
receptiveness of the market to our premium branded
export strategy.
4

Production Developments
On the production side, salmon farming is now underway at all
three of our new sea farms, which all benefit from higher water
flow. During the period we had the inaugural harvest from two of
our three new farms, Waitata and Ngamahau. The final new farm,
Kopaua, is due for harvest later in 2018.
We have an ongoing program to improve the effectiveness
of our salmon aquaculture operations. For example, recent
improvements implemented at our hatcheries have resulted in
larger smolt being put to sea, with the objective of measurable
improvements in harvest size and quality. Another area of focus
is the improvement of feed performance across a diversified
range of feed suppliers. During the period we trialled feed from
new potential suppliers and are heading into peak summer with
summer diets from two key suppliers.
Early in 2017 we finalised the implementation of our new harvest
method utilising leading pump technology, which opens up
export opportunities to Europe whilst also driving anticipated
operational efficiencies.
Key fish performance metrics were in line with expectations for
the period, with feed conversion ratio (FCR) and mortality rate at
1.76x and 4.6% respectively.
Other Developments
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. The board
is supportive of this 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.
The board also welcomed Ms Wang Xin, Director of China
Resources Ng Fung Ltd, as a non-executive director of
New Zealand King Salmon. Ms Wang Xin joined the board in
February 2017. China Resources Ng Fung Ltd purchased
a 9.99% shareholding in New Zealand King Salmon as a part
of the recent IPO.
OUTLOOK
The outlook for New Zealand King Salmon is positive. In the near
term, the board has reaffirmed its full year FY17 forecast for a
pro forma operating EBITDA of $19.2 million, as presented in its
Product Disclosure Statement dated 23 September 2016.
The longer term outlook for the company is also positive with
strong demand building for our premium brands supported by
positive global food and health trends.
The board would like to acknowledge the contribution of our team
to New Zealand King Salmon’s ongoing success. A further update
will be provided to the market following the completion of the
peak summer period.
CORPORATE INFORMATION
DIRECTORS APPOINTMENT DATE
John William Dudley Ryder (Independent Chairman) 21 September 2016
Grantley Bruce Rosewarne (Chief Executive Officer)
21 September 2016
Mark Robert Hutton (Independent Director)
21 September 2016
Jack Lee Porus 21 September 2016
Paul James Steere (Independent Director)
21 September 2016
Thomas Chai Leng Song 21 September 2016
Wang Xin (Non-Executive Director)
28 February 2017
REGISTERED OFFICE
93 Beatty Street
Annesbrook
Nelson
New Zealand
PRINCIPAL PLACE
OF BUSINESS
93 Beatty Street
Annesbrook
Nelson
New Zealand
BANKERS
The Bank of New Zealand
81 Riccarton Road
Christchurch
New Zealand
ANZ Bank New Zealand Limited
248 Trafalgar Street
Nelson
New Zealand
SOLICITORS
Glaister Ennor
18 High Street
Auckland
New Zealand
AUDITORS
Ernst & Young (EY)
20 Twigger Street
Christchurch
New Zealand
John Ryder
CHAIRMAN
Grant Rosewarne
MANAGING DIRECTOR & CEO
5
INTERIM FINANCIAL REPORT

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
Notes $000 $000


Revenue 5 63,626 56,598
Cost of goods sold (59,239) (51,068)
Fair value gain on biological transformation 28,722 16,548
Freight costs to market (6,077) (4,839)
Gross profit 27,032 17,239

Other operating income 738 664
Sales, marketing and advertising expenses (4,012) (3,005)
Distribution overheads (1,436) (968)
Corporate expenses (3,513) (2,783)
Other expenses (2,621) (4)
Earnings before interest, tax, depreciation and amortisation 16,188 11,143

Depreciation and amortisation expense (2,106) (2,024)
Finance income 86 38
Finance costs (1,572) (2,175)
Profit before tax 12,596 6,982

Income tax expense (3,891) (1,246)
Net profit for the period 8,705 5,736
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in
subsequent periods (net of tax):
Exchange differences on translation of foreign operations (28) (144)
Net movement on cash flow hedges 1,813 (564)
Other comprehensive income not to be reclassified to profit or loss in
subsequent periods (net of tax):
Share based payment expense 41 –
Net other comprehensive income/(loss) 1,826 (708)
Total comprehensive income for the period 10,531 5,028
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
Earnings per share
Basic profit for the period attributable to ordinary equity holders of the parent $0.07 $0.05
Diluted profit for the period attributable to ordinary equity holders of the parent $0.07 $0.05
Net tangible asset value per share
Net tangible asset value for the period attributable per ordinary share $1.08 $1.09
The above interim consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
6

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
Foreign Share
Currency Based
Share Translation Hedge Payment Retained Total
Capital Reserve Reserve Reserve Earnings Equity
UNAUDITED $000 $000 $000 $000 $000 $000

As at 1 July 2016 25,296 (527) (2,195) - 14,440 37,014

Profit for the period - - - - 8,705 8,705
Other comprehensive loss - (28) 1,813 41 - 1,826

Total comprehensive income/(loss) for the period - (28) 1,813 41 8,705 10,531

Increase in share capital in preparation for IPO 68,915 - - - - 68,915
Shares issued 30,105 - - - - 30,105
Transaction costs arising on share issue (1,797) - - - - (1,797)
As at 31 December 2016 122,519 (555) (382) 41 23,145 144,768
UNAUDITED
$000 $000 $000 $000 $000 $000

As at 1 July 2015 25,296 (333) (27) - 11,847 36,783

Profit for the period - - - - 5,736 5,736
Other comprehensive income/(loss) - (144) (564) - - (708)

Total comprehensive income/(loss) for the period - (144) (564) - 5,736 5,028

As at 31 December 2015 25,296 (477) (591) - 17,583 41,811
The above interim consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
7
INTERIM FINANCIAL REPORT

31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
Notes $000 $000
ASSETS
Current assets
Cash and cash equivalents 10,694 2,419
Trade and other receivables 15,210 10,229
Inventories 7 19,244 17,291
Biological assets 8 58,464 45,537
Income tax receivable 173 –
Non-current assets held for sale 421 421
Other financial assets 13 – 2,758
Derivative financial assets 832 526
Total current assets 105,038 79,181
Non-current assets
Property, plant and equipment 34,294 32,596
Biological assets 8 8,828 7,413
Derivative financial assets 1,985 1,443
Intangible assets 3,800 3,868
Deferred tax asset 1,527 1,967
Goodwill 39,255 39,255
Total non-current assets 89,689 86,542
TOTAL ASSETS 194,727 165,723

LIABILITIES
Current liabilities
Interest-bearing loans and borrowings 9 1,239 19,326
Trade and other payables 21,424 15,416
Income tax payable – 580
Employee benefits 2,481 2,384
Other financial liabilities – 4,427
Shareholder loans – 73,114
Derivative financial liabilities 1,820 2,319
Total current liabilities 26,964 117,566
Non-current liabilities
Interest-bearing loans and borrowings 9 10,140 163
Employee benefits 434 465
Deferred tax liabilities 10,913 7,740
Derivative financial liabilities 1,508 2,775
Total non-current liabilities 22,995 11,143
TOTAL LIABILITIES
49,959 128,709
NET ASSETS
144,768 37,014

EQUITY
Equity attributed to equity holders of the company
Share capital 12 122,519 25,296
Reserves (896) (2,722)
Retained earnings 23,145 14,440
TOTAL EQUITY 144,768 37,014
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
For and on behalf of the Board, who authorised the issue of these interim financial statements on 28 February 2017.
Paul Steere 28 February 2017
DIRECTOR AND AUDIT & RISK COMMITTEE CHAIRMAN
John Ryder 28 February 2017
CHAIRMAN
The above interim consolidated statement of financial position should be read in conjunction with the accompanying notes.
8

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
$000 $000
OPERATING ACTIVITIES
Receipts from customers 59,744 52,368
Payments to suppliers (43,033) (37,925)
Payments to employees (15,189) (13,158)
Interest received 78 40
Interest paid (1,052) (679)
Insurance income 214 530
Income tax paid (1,741) (513)
Net cash flows from/(used in) operating activities (979) 663
INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 10 31
Purchase of property, plant and equipment (3,696) (3,073)
Purchase of intangible assets (49) (30)
Net cash flows used in investing activities (3,735) (3,072)
FINANCING ACTIVITIES
Revolving loan repaid (9,000) -
Gross proceeds from share issue 30,105 -
Transaction cost arising on share issue (1,797) -
Proceeds from shareholder advances 1,402 500
Repayment of shareholder advances (7,651) -
Payment of finance lease liabilities (70) (40)
Net cash flows from financing activities 12,989 460
Net increase/(decrease) in cash and cash equivalents 8,275 (1,949)
Cash and cash equivalents at 1 July 2,419 5,522
Cash and cash equivalents at 31 December 10,694 3,573
The above interim consolidated statement of cash flows should be read in conjunction with the accompanying notes.
9
INTERIM FINANCIAL REPORT

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
1. CORPORATE INFORMATION
The interim financial statements of New Zealand King Salmon Investments Limited (the Company) and its subsidiaries (together
the Group) for the six months ended 31 December 2016 were authorised by the directors on 28 February 2017.
New Zealand King Salmon Investments Limited is a company incorporated and domiciled in New Zealand. The Company is
registered under the Companies Act 1993 and listed on the NZX Main Board ("NZX") and the Australian Securities Exchange ("ASX").
The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.
The interim consolidated financial statements are for the six months ended 31 December 2016 and have been prepared in
accordance with NZ GAAP. New Zealand King Salmon Investments Limited is a profit-orientated entity.
The Group is principally engaged in the farming, processing and sale of premium salmon products.
2. PREPARATION OF INTERIM FINANCIAL STATEMENTS
a. Statement of compliance
The interim consolidated financial statements for the six months ended 31 December 2016 have been prepared in accordance with
NZ IAS 34 - Interim Financial Reporting and IAS 34 Interim Financial Reporting, and should be read in conjunction with the annual
financial statements as at 30 June 2016 which were prepared in accordance with NZ IFRS and IFRS.
The interim consolidated financial statements for the six months ended 31 December 2016 are unaudited. Comparative information
for the interim consolidated statement of financial position is at 30 June 2016 and is audited. Comparative information for the
interim consolidated statement of comprehensive income, interim consolidated changes in equity and interim consolidated
statement of cash flows is for the comparative six month period and is unaudited.
b. Basis of measurement
The accounting policies adopted in the interim financial statements are consistent with those applied in the annual financial
statements as at 30 June 2016.
c. Significant accounting judgements, estimates and assumptions
Management have applied the same principles and used the same key sources of estimation in the preparation of the interim
financial statements as those applied to in the consolidated financial statements for the year ended 30 June 2016.
3. SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD
The financial position of the Group was affected by the following significant events and transactions during the reporting period:-
a. Initial Public Offer (IPO)
On 19 October 2016, the Company listed on the NZX Main Board ("NZX") and Australian Securities Exchange ("ASX"). The listing
resulted in a primary issue of 26,785,715 shares and with an additional 1,180,747 shares issued to senior executives and employees.
Proceeds of $30 million were raised in accordance with the Product Disclosure Statement dated 23 September 2016.
b. Capital Structure
Prior to the IPO shareholder loans were converted to shares, amended banking arrangements were put in place and with the
proceeds from the IPO bank borrowings were reduced to $10 million.
4. SEASONALITY
The Group's business is not considered to be highly seasonal. Sales and related costs vary from month to month with overall
variation considered to be immaterial. The cost of fish has historically shown seasonal variation between the first and second halves
of the financial year due to harvesting from farms with different cost structures. Management has concluded that variations are not
'highly seasonal' in accordance with IAS 34 as this is dependent on operational planning. In any given year the Group would expect
to harvest fish from all active sea farms.
10

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
5. SEGMENT INFORMATION
a. Segment results
For management purposes, the Group is organised into three business units based on geographical sales market and customer
channel. The operating results of the business units are monitored for the purpose of making decisions about resource allocation
and performance assessment.
The Group's reportable segments are:
New Zealand Retail
The company provides these customers with pre-packed value added products (including wood
roasted and cold smoked product), whole fresh fish and pre-cut fillets.
New Zealand Foodservice The company provides these customers with a broad variety of salmon products including whole
fresh fish, pre-cut fillets, portions and a range of smoked products.
Export Market Predominantly customers based outside New Zealand, most of whom currently fall into the
Foodservice category as described above.
Segment performance is evaluated at the EBITDA level and results are as follows:
New Zealand New Zealand Export
Retail Foodservice Market Total
UNAUDITED $000 $000 $000 $000
Six months ended 31 December 2016
Revenue 17,136 19,490 27,000 63,626
Segment results (EBITDA) 3,944 5,231 7,012 16,188
UNAUDITED $000 $000 $000 $000
Six months ended 31 December 2015
Revenue 14,717 18,510 23,371 56,598
Segment results (EBITDA) 2,421 3,249 5,473 11,143
Depreciation, amortisation, finance income, finance cost and fair value gains and losses on financial assets are not allocated to
individual segments as the underlying instruments are managed on a group basis.
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
Segment results reconcile to profit before tax as follows: $000 $000
Segment results 16,188 11,143
Depreciation, amortisation and impairment (2,106) (2,024)
Finance costs (1,486) (2,137)
Group profit before tax 12,596 6,982

The Group does not prepare information allocating assets and liabilities to the market facing segments as all material assets and
liabilities are managed on a group basis.
b. Revenue by geographical location of customers
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
$000 $000
New Zealand 36,626 33,228
North America 14,229 12,223
Australia 6,249 4,688
Japan 2,687 2,641
Europe 946 930
Other 2,889 2,888
63,626 56,598

Sales net of settlement discounts to one major customer for the period ended 31 December 2016 accounted for over 10% of total
revenue. Sales to that customer totalled $8,516k or 13% of total sales (31 December 2015: one customer accounted for $5,593k or
10% of total sales and another for $7,136k or 13% of total sales). In both years these customers were included in the New Zealand
Retail segment.
11
INTERIM FINANCIAL REPORT

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
6. EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit for the period attributable to shareholders by the weighted average number of
ordinary shares on issue during the period.
Diluted earnings per share assume conversion of all potential ordinary shares in determining the weighted average number of
ordinary shares on issue.
The Company completed a 2:11 for 1 share split on 19 September 2016. On 19 October 2016 the Company issued 27,966,462 shares in
the initial public offering. The weighted average number of ordinary shares used in the calculation of earnings per share, basic and
diluted, for 2015 has been adjusted to reflect the share split.
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
$000 $000
Profit attributable to ordinary equity holders of the parent for basic and diluted earnings 8,705 5,736

Shares Shares
000 000
Weighted average number of ordinary shares for basic earnings per share 121,439 110,191
Share options - 375
Weighted average number of ordinary shares for diluted earnings per share 121,439 110,566

7. INVENTORIES
31 Dec 2016 30 June 2016
UNAUDITED AUDITED
$000 $000
Raw materials 11,286 9,811
Work in progress 111 50
Finished goods 7,847 7,430
Total inventories 19,244 17,291
The closing cost of finished goods as at 31 December 2016 includes a fair value uplift at point of harvest of $2,212k (June 2016:
$2,507k) and an impairment provision of $972k (June 2016: $1,572k).
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
$000 $000
Amount of inventories recognised as an expense in the statement of comprehensive income
Cost of inventories recognised as an expense 59,596 50,749
Movement in net realisable value of inventory (increase)/decrease (357) 319
Total cost of inventories included in cost of goods sold 59,239 51,068
The cost of inventories recognised as an expense for the period ended 31 December 2016 includes a fair value uplift at point of
harvest of $17,688k (December 2015: $14,625k).
12

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
8. BIOLOGICAL ASSETS
The Group has three hatcheries in the South Island and eight operational marine salmon farms in the Marlborough Sounds. The fish
livestock typically grow for up to 31 months before harvest.
31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
Fair value Fair value
$000 $000
Biological assets:
As at 1 July 52,950 47,595
Increase due to biological transformation 62,519 91,530
Decrease due to harvest /mortality (48,907) (86,754)
Changes in fair value 730 579
As at 31 December 2016 and 30 June 2016 67,292 52,950
Closing fair value uplift from cost on biological assets 27,932 16,602

Fair value gain/(loss) recognised in profit or loss
Gain arising from growth of biological assets 27,992 29,644
Movement in fair value of biological assets 730 579
Total fair value gain/(loss) on biological transformation 28,722 30,223
kg 000 kg 000
Closing fresh water stocks 178 174
Closing sea water stocks 5,973 4,400
Total closing biomass (live weight) at 31 December 2016 and 30 June 2016 6,151 4,574

31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
Biomass (live weight) kg 000 kg 000
Fish harvest for the period 3,861 3,392
Fair value measurement
Measurement of fair value is performed using a fair value model. The method of valuation therefore falls into level 3 of the fair value
hierarchy as the inputs are unobservable inputs.
Selling price is estimated at balance dated based on the most relevant future market price at expected harvest date. The valuation
of biological assets is carried out separately for each site at a brood and strategy level. Estimated actual cost up to the date
of harvest per site is used to measure the expected margin at the time the fish is defined as ready for harvest, being 4.0kg live
weight. The expected margin is recognised proportionately based on average biomass at reporting date. Fair value measurement
commences at the date of transfer to sea water as this is considered the point at which the fish commence their grow out cycle.
Fair value risk and sensitivity
The Group is exposed to financial risks relating to the production of salmon stocks including climatic events, disease and
contamination of water space.
The Group seeks to produce and market the highest quality salmon products. Extensive monitoring and benchmarking is carried
out to provide optimum conditions and diets to maximise fish performance during the grow out cycle. Sales are maintained in a
range of brands, products and markets to maximise returns from the quality mix of fish harvested. The Group has insurance to cover
various risks relating to the livestock.
The estimate of unrealised fair value uplift from cost is based on several assumptions. Changes in these assumptions will impact the
fair value calculation. The realised profit which is achieved on the sale of inventory will differ from the calculations of fair value of
biological assets because of changes in key factors such as the final market destinations of inventory sold, changes in price, foreign
exchange rates, harvest weight, growth rates, mortality, cost levels and differences in harvested fish quality.
Leaving all other variables constant a 5.0% increase/decrease in average sales prices would increase/decrease the fair value of
biological assets and profit before tax by $4.6m, while a 5.0% increase/decrease in harvest volume would increase/decrease the fair
value of biological assets and profit before tax by $1.4m.
A change in production costs will generally have a lesser impact on the fair value of biological assets than the same percentage
change in sale price or harvest volumes. Changes in fish health and environmental factors may affect the quality of harvested fish,
which may be reflected in realised profit via both achieved sales price and production costs.
13
INTERIM FINANCIAL REPORT

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
9. INTEREST BEARING LOANS AND BORROWINGS
31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
$000 $000
Current
Current portion of finance lease liabilities 156 66
Current portion of secured bank loans - 19,000
Other borrowings 1,083 260
1,239 19,326
Non-current
Finance lease liabilities 140 163
Secured bank loans 10,000 -
10,140 163
The Company has facilities with BNZ for $30m, secured by a general security deed over the assets of the Group. The expiry date of
facility A of $18m is 25 November 2020, and facility B of $12m expires on 18 October 2019. At balance date $10m of facility A was
drawn (June 2016: $19m).
10. FAIR VALUES OF FINANCIAL INSTRUMENTS
The table below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments, other than
those with carrying amounts that are reasonable approximations of fair values:
31 Dec 2016 30 Jun 2016
Carrying Fair Carrying Fair
amount value amount value
UNAUDITED UNAUDITED AUDITED AUDITED
$000 $000 $000 $000
FINANCIAL ASSETS
Current assets
Forward exchange contracts 635 635 339 339
Foreign exchange options 197 197 187 187
Loans to employees - - 2,758 2,758
832 832 3,284 3,284
Non-current assets
Forward exchange contracts 1,002 1,002 734 734
Foreign exchange options 983 983 709 709
1,985 1,985 1,443 1,443
FINANCIAL LIABILITIES

Current liabilities
Loans and borrowings 1,083 1,083 19,000 19,000
Obligations under finance leases 156 156 66 66
Forward exchange contracts 1,077 1,077 1,107 1,107
Foreign exchange options 60 60 27 27
Interest rate swaps 683 683 1,185 1,185
Other financial liabilities - - 4,427 4,427
Shareholder loans - - 73,114 73,114
3,059 3,059 98,926 98,926
Non-current liabilities
Loans and borrowings 10,000 10,000 - -
Obligations under finance leases 140 134 163 149
Forward exchange contracts 915 915 1,319 1,319
Foreign exchange options 462 462 634 634
Interest rate swaps 131 131 822 822
11,648 11,642 2,938 2,924

The carrying value of cash and short term deposits, trade receivables, trade payables and other current liabilities is equivalent to
their fair value due to the short term maturities of these instruments.
14

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
10. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)
Valuation methods
Financial instruments have been categorised into the following hierarchy and valued according to the following definitions, based on
the lowest level input that is significant to the fair value measurement as a whole:
Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
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)
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
All derivative financial instruments for which a fair value is recognised have been categorised within level 2 of the fair value
hierarchy. Industry experts have provided the fair values for all derivatives based on an industry standard model.
11. COMMITMENTS AND CONTINGENCIES
a. Capital expenditure and other commitments
31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
$000 $000
Total capital and other commitments 1,946 2,602

The Group has entered into agreements to purchase aquaculture plant and equipment and processing plant and equipment. As at
31 December 2016 the total commitment is $1,946k (June 2016: $508k).
b. Contingencies
The Group has a contingent liability of $783k in respect of a fish transport contract requiring the Group to purchase three bulk
tankers, should the fish transport contract be terminated early (June 2016: $840k).
The Group is currently in discussion with a feed supplier regarding a feed quality issue and the outcome is yet to be resolved.
15
INTERIM FINANCIAL REPORT

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
12. CAPITAL AND RESERVES
31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
000 000
Issued Capital 138,158 25,268

Issued capital at 31 December 2016 amounted to $122,517,958 (June 2016: $25,295,501) and 138,157,843 (June 2016: 25,267,695)
ordinary shares.
a. Ordinary share capital
Ordinary shares
Ordinary shares are fully paid with no par value. Each ordinary share has an equal right to vote, to participate in dividends, and to
share in any surplus on the winding up of the Company.
31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
# shares Value # shares Value
000 $000 000 $000
b. Movement in ordinary share capital
As at 1 July 2015 25,295 25,296 25,268 25,296
Shareholder loans converted to share capital 26,941 70,202
Shares issued by way of 2.11 to 1 share split 57,955 - - -
Issue of new shares pursuant to IPO 26,786 30,000 - -
Less: Transactional costs arising on share issue - (1,797) - -
Employee offer pursuant to IPO 1,181 1,323 - -
Share issue for employee share scheme - (2,505) - -
138,158 122,519 25,268 25,296

In preparation for the IPO, shareholder loans of $70,202,480 were converted to shares with one share issued for each $2.6058 of
shareholder loan converted. In September 2016 the ordinary share capital that had been converted from shareholder loans was
subdivided on the basis of a 2.11 to 1 share split which resulted in an additional 57,955,025 shares being issued on 19 September 2016.
The Company issued 26,785,715 of ordinary shares at $1.12 per share at the IPO on 19 October 2016.
The Senior Executive Share Scheme involves the Company making interest-free loans to selected senior executives to acquire shares
in the Company. 5,063,406 shares are held by a custodian at the end of the reporting period.
c. Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial
statements of the foreign subsidiary.
13. RELATED PARTY DISCLOSURES
a. Subsidiaries
New Zealand King Salmon Investments Limited has the following trading subsidiaries.
Country of
incorporation Equity interest
Name 31 Dec 2016 30 Jun 2016
The New Zealand King Salmon Co Limited New Zealand 100% 100%
The New Zealand King Salmon Pty Limited Australia 100% 100%

The principal activity of The New Zealand King Salmon Co Ltd is the farming and processing of salmon. The activity of The New
Zealand King Salmon Pty Ltd is the distribution of salmon.
b. Entities with significant influence over the Group
At balance date Oregon Group Limited owned 40.26% (30 June 2016: 50.88%) of the shares in New Zealand King Salmon
Investments Limited.
16

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
13. RELATED PARTY DISCLOSURES (CONTINUED)
c. Transactions with related parties
The following provides the total amount of transactions that were entered into with related parties for the relevant financial year.
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
$000 $000
Interest paid - Oregon Group Limited 272 787
Interest paid - other shareholders 194 619
Goods and services purchased from other related parties 1 52

d. Terms and conditions of transactions with related parties
Sales to and purchases from related parties are made in arm’s length transactions both at normal market prices and on normal
commercial terms.
e. Amounts owing to related parties
31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
$000 $000
Current:
Amounts advanced by shareholders of NZKS Custodian Ltd - 4,427
Shareholders’ loans - 53,826
Shareholder advance repayable on demand - 15,765
Current portion of shareholder loans - 69,591
Accrued interest on shareholders’ loans - 3,523
- 73,114
On 19 September 2016 shareholder loans of $70,202,480 were converted to shares with one share issued for each $2.6058 of
shareholder loan converted.
f. Amounts owing by related parties
31 Dec 2016 30 Jun 2016
UNAUDITED AUDITED
$000 $000
Owing by related parties - 2,758

These loans are interest free and are in relation to the Senior Executive Share Scheme.
g. Compensation of key management personnel of the Group
31 Dec 2016 31 Dec 2015
UNAUDITED UNAUDITED
$000 $000
Short-term employee benefits 1,390 1,017
Post employment pension and medical benefits 55 45
1,445 1,062

14. EVENTS AFTER BALANCE DATE
There have been no significant events after balance date.
17
INTERIM FINANCIAL REPORT

REVIEW REPORT
18

93 Beatty Street, Annesbrook
Nelson, New Zealand
www.kingsalmon.co.nz