NZK lifts FY18 earnings guidance

2 November 2017
Market update

New Zealand King Salmon lifts FY2018 earnings guidance

As a result of strong first quarter trading results, the directors of New Zealand King Salmon
Investments Limited (New Zealand King Salmon, NZX and ASX:NZK) advise that Pro-Forma
Operating EBITDA
1
for the full financial year to 30 June 2018 is now forecast to be between $24.5m
and $26.0m, an increase to the $22.4m forecast for the period in the Product Disclosure Statement
registered for New Zealand King Salmon’s initial public offering in September 2016 (PDS).

The increased earnings guidance reflects:
 Improved fish survival and stronger than forecast fish growth during the summer of FY17 (as
highlighted in the recent FY17 full year results announcement).
 Forecast sales volume for FY18 has been revised to approximately 8,000mt, rather than the
7,480mt forecast in the PDS.
 New Zealand King Salmon’s sales pricing remains solid in all markets.
 Feed prices lower than forecast for the first half of FY18, although this benefit is not expected to
persist into the second half, due to the use of premium summer diets.

Based on current trading performance the result for the first half of FY18 is expected to be materially
above the prior comparable period. The split of earnings between the first and second half is thus
expected to differ markedly to FY17 and as noted above is due to a number of one-off factors specific
to this trading period.

The full year forecast is based on current trading conditions, and as in previous years the summer
period may have a material impact on fish performance and thus earnings.

Shareholders are reminded that the first Annual Shareholders’ Meeting will be held on Tuesday
November 7 in Blenheim.


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,
as well as 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


1
Pro-Forma Operating EBITDA is a non-GAAP profit measure used by New Zealand King Salmon. Pro-Forma
Operating EBITDA reverses out fair value gains associated with the revaluation of livestock pursuant to NZ IAS
41-Agriculture and NZ IAS 2-Inventory. The application of NZ IAS 41–Agriculture, and NZ IAS 2–Inventory
effectively results in the New Zealand King Salmon Group recognising expected profits from the sale of
livestock prior to sale. Other international listed salmon companies will typically present ‘Operating’ results
which remove the impact of these gains or losses. New Zealand King Salmon therefore believes that Operating
results enable a better comparison of financial performance between its peers and between periods.