LIC half year results

Private Bag 3016
Hamilton 3240
New Zealand

0800 651 156
www.lic.co.nz
LIC is the trading name of Livestock Improvement Corporation Limited
Market statement
24 January 2018
LIC business transformation, sales upturn drives improved trading half-year result
Performance Highlights H1 FY17-18:
 $153 million total revenue, 16.6% up on the same period last year.
 $57.5 million earnings before interest, tax, depreciation and amortisation (EBITDA) excluding
one-off transformation costs
[1]
, up 36.6% on the same period last year. Reported EBITDA of
$36.8 million was 12.6% down on the same period last year.
 $43.2 million earnings before interest and tax (EBIT) excluding one-off transformation costs
[1]
,
up 52.3% on last year. Reported EBIT of $22.5 million, 20.6% down on same period last year
due to one-off transformation costs.
 $15.1 million net profit after tax (NPAT), 21.9% down on the same period last year due to one-
off transformation costs.

*Notes about the financial information are set out at the end of this market statement, including information about the
non-GAAP financial information.
Livestock Improvement Corporation (NZX: LIC) announces its half-year financial results for the six
months to 30 November 2017.
Board chair Murray King said the half-year result reflects the co-op’s work to transform its business,
to deliver cost efficiencies and deliver more value to its farmers.
Total revenue was up on the same period as last year; the EBIT and NPAT was also up substantially,
excluding the one-off implementation costs from the transformation programme. Reported EBIT and
NPAT were down as a result of one-off transformation costs.
Cash flows from operations were positive $5.4 million, compared to negative $0.4 million last year.
This is reflective of the increased sales and the seasonal nature of LIC’s business, particularly artificial
breeding (AB).
LIC continues to operate a strong balance sheet with total assets including cash, software, land and
buildings and bull teams of $371 million.
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.
Success of transformation programme
“The milk price is always a factor in farmer spend and this has partly driven an upturn in sales as
farmers continue to invest in herd improvement services and solutions which deliver long term value
and build a more sustainable farming business.

Page 2 of 3
"At the same time, we are also seeing the success of our transformation programme flowing through
to the bottom line.
“The cost efficiencies and business growth delivered through the programme were key contributors
toward a better year-end result in 2016-17, and now this half-year result.
“In its first year, the programme has delivered a combination of significant recurring benefits and one-
off cash benefits.
“We expect this will continue to deliver significant improvement in earnings in future years,” he said.
An example of improved efficiencies and recurring benefits is from the work the co-op has done to
better manage the travel undertaken by their team of 840+ AB technicians each spring.
“As a result of this work, over the last two spring AB seasons, the team saved up to one million
kilometres in travel distance. This means less time on the road and more time on farm with customers
and their herds. It saves time, fuel and on-road costs for the business, while also reducing driving
time therefore improving safety,” King said.
“We also introduced a new herd testing cancellation policy, to help us operate a more efficient service,
and I am pleased to report that this contributed to a reduction in cancellations or changes at short
notice by up to 50%.”
Examples of business growth driven by the transformation include the Wagyu beef programme, which
provides farmers with an alternative to bobby calves and an additional income source, and the
recently launched SPACE™ service which delivers pasture management data from satellites.
As part of the programme, LIC also sold its Otago-based Deer Improvement subsidiary business to
concentrate on its dairy business and its herd testing and diagnostics laboratory facilities in Riverlea,
Hamilton which included a leaseback arrangement to allow continued operation of LIC services at the
site.
Becoming more agile and responsive
LIC embarked on the transformation after recording its first ever loss in 2015-16, aimed at protecting
the fundamentals of the co-operative while making sufficient profits to enable LIC to reinvest for the
future, and be more responsive to and prepared for disruptive threats.
“LIC is vulnerable to the same disruption that other industries have experienced in recent years from
new technology and innovation, environmental challenges, regulation and alternative milk products.
“Standing still is not an option. We have to constantly be improving and adapting the way we do
business.
“The transformation programme is one of two key initiatives underway to ensure LIC can meet future
challenges and deliver on its strategic goals.
Share simplification
“The next step is to simplify LIC’s share structure to address concerns around the growing disparity
between LIC’s two share classes.
“The Board has almost completed its consideration of the options and will provide an update on next
steps for shareholders in the coming weeks.”
Outlook

Page 3 of 3
Underlying Earnings (NPAT excluding bull valuation)
[2]
at year-end are forecast to be in line with the
2016-17 result of $3 million despite LIC incurring and accounting for approximately $15m of one-off
transformation costs on an after tax-basis within Underlying Earnings.
The increased revenue position was driven by the success of the transformation programme, but this
has also translated in reported EBIT being lower as it includes the one-off implementation costs of
the programme. These costs will not be incurred in second half or years ahead, so a stronger reported
EBITDA and reported EBIT is expected next financial year.
With ongoing and recurring benefits from the transformation programme and no further one-off costs
to be incurred, LIC expects Underlying Earnings
[2]
for the 2018-19 year to be in the range of $18-$26
million, assuming no significant climate event or milk price drop takes place between now and then.
ENDS

Media contact: Ashleigh Sattler, asattler@lic.co.nz, 027 617 1942
For any shareholder enquiries please phone 0800 264 632
Notes to Financial Information
Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may
not be comparable to similar financial information presented by other entities. As this is a half-year update, the
numbers relating to November 2017 have not been audited.
Notes: [1] One-off transformation costs pre-tax of $20.7 million were incurred in the period. EBITDA and EBIT
numbers, excluding one-off transformation costs, are presented as they are considered useful to
investors to provide an indication of the change in business performance. The numbers presented are
non-GAAP financial information.
[2] Underlying Earnings is the company’s NPAT excluding bull valuation but, for the avoidance of doubt,
including one-off transformation costs. Underlying Earnings is considered useful to investors as it is
the basis on which LIC has historically reported and it is the basis on which LIC makes its determination
of dividends.
These numbers should be all read in conjunction with the interim financial accounts.
About LIC
LIC is a farmer-owned co-operative that provides a range of services and solutions to improve the productivity
and prosperity of farmers. This includes dairy genetics, information technology, herd testing, DNA parentage
verification and farm advisory services through FarmWise. Subsidiary business LIC Automation also provides
integrated automation systems and unique milk testing sensors that present real-time data while a cow is being
milked. 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 700 permanent staff, swelling to 2000 during
the peak dairy mating season. LIC also has offices in the United Kingdom, Ireland and Australia. All LIC profit
is returned to its farmer owners/shareholders in dividends, or reinvested for new solutions, research and
development. www.lic.co.nz

---

Livestock Improvement Corporation Limited (LIC)
INTERIM FINANCIAL STATEMENTS
for the Six Months Ended 30 November 2017

Income Statement
for the six months ended 30 November 2017
In thousands of New Zealand dollarsNote
6 months to
30 Nov 2017
6 months to
30 Nov 2016
12 months to
31 May 2017
UnauditedUnauditedAudited
Revenue
4151,479130,326199,129
Other income
1,3367584,400
Purchased materials
(16,064)(14,786)(28,406)
Staff expenses
(56,471)(52,476)(89,357)
Depreciation
(4,058)(5,079)(9,617)
Amortisation
(10,244)(8,661)(18,468)
One-off transformation costs
(20,665)- (1,735)
Other expenses
(22,827)(21,750)(47,872)
22,48628,3338,075
Finance income
69663149
Finance expenses
(1,580)(1,455)(2,390)
Fair value adjustments - Bull Team
- - 24,663
Profit/(loss) before taxation21,60226,94130,498
- - (6,906)
Tax - other
(6,535)(7,647)(2,792)
Total tax expense
(6,535)(7,647)(9,698)
Profit/(loss) for the period15,06719,29520,800
Profit/(loss) attributable to:
Owners of the Company14,85419,01820,568
Non-controlling interests
213
277232
15,06719,29520,800
Earnings per share
Basic and diluted earnings per investment share (NZ dollars)0.5100.6530.704
Profit/(loss) for the period
15,06719,29520,800
(Profit)/loss on fair value adjustments - Bull Team
- - (24,663)
- -
6,906
15,06719,2953,042
`
Earnings before finance activities, taxation and fair value
adjustments - Bull Team
Tax on fair value adjustments - Bull Team
Underlying net earnings/(loss) excluding fair value
adjustments - Bull Team and tax thereon
Supplementary note to the Income Statement
Tax effect on (profit)/loss on fair value adjustments - Bull Team
Page 1 of 13

Statement of Comprehensive Income
for the six months ended 30 November 2017
In thousands of New Zealand dollars
6 months to
30 Nov 2017
6 months to
30 Nov 2016
12 months to
31 May 2017
UnauditedUnauditedAudited
Profit/(loss) for the period
15,06719,29520,800
Other comprehensive income (net of income tax)
Items that may be reclassified to the Income Statement in future periods:
- (49)(224)
2,362820830
Items that will not be reclassified to the Income Statement in future periods:
- -
1,049
2,3627711,654
Total comprehensive income/(loss) for the period17,42920,06522,454
Total comprehensive income/(loss) attributable to:
Owners of the Company17,21619,78822,223
Non-controlling interests213277232
Total comprehensive income/(loss) for the period17,42920,06522,454
Net change in fair value of available for sale financial assets
Revaluation of fixed assets
Effective portion of changes in fair value of cash flow hedges
Other comprehensive income/(loss) for the year, net of tax
Page 2 of 13

Balance Sheet
as at 30 November 2017
In thousands of New Zealand dollars
As at 30 Nov
2017
As at 30 Nov
2016
As at 31 May
2017
UnauditedUnauditedAudited
Assets
Fixed assets69,34280,14878,390
Assets classified as held for sale- 6,524-
Intangible assets74,75076,82673,106
Biological assets 112,17487,511112,174
Investments & derivatives13,4774,4405,181
Total non-current assets269,743255,448268,851
Cash & cash equivalents7,5614,7363,458
Inventories11,71113,44612,003
Biological assets 2,1632,4473,153
Trade & other receivables79,49079,39247,495
Assets classified as held for sale- - 6,524
Total current assets100,925100,02272,633
Total assets370,668355,470341,484
Equity
Share capital58,46458,46458,464
Reserves34,15432,55333,437
Retained earnings155,884139,720141,285
Equity attributable to owners of the company248,502230,737233,186
Non-controlling interests440285227
Total equity 248,942231,022233,413
Liabilities
Provisions5,2425,7655,242
Term loans- 15,00015,000
Deferred tax liability39,71631,16239,141
Total non-current liabilities44,95851,92759,383
Co-operative Control Shares6,3096,2636,238
Derivatives16098206
Trade & other payables21,80618,97222,081
Bank loans & borrowings39,16636,56217,070
Provision for tax5,6677,258320
Provisions3,6603,3672,773
Total current liabilities76,76872,52148,688
Total liabilities121,726124,448108,071
Total equity and liabilities370,668355,470341,484
Director
Director
Date: 24 January 2018
Date: 24 January 2018
Page 3 of 13

Statement of Cash Flows
for the six months ended 30 November 2017
In thousands of New Zealand dollarsNote
6 months to
30 Nov 2017
6 months to
30 Nov 2016
12 months to
31 May 2017
UnauditedUnauditedAudited
Net cash from/(used in) operating activities
6
Cash provided from:
Receipts from customers
108,53092,572205,195
Sale of biological assets1,2192811,077
Finance income received
17763149
109,926
92,916
206,421
Cash applied to:
Payments to suppliers and employees
(102,891)(91,601)(177,108)
Finance expense paid
(1,013)(856)(1,647)
Income tax paid
(614)(892)(2,308)
(104,518)
(93,349)(181,063)
5,408
(433)25,359
Net cash from/(used in) investing activities
Cash provided from:
Sale of shares
87- -
Sale of fixed assets
16,2654384,242
16,352438
4,242
Cash applied to:
Acquisition of subsidiary - net of cash acquired
- -
(143)
Acquisition of shares
(6,266)(273)
(1,273)
Acquisition of Investments & derivatives
(46)- -
Acquisition of intangibles
(11,888)(5,831)
(11,919)
Acquisition of fixed assets
(4,240)(212)
(4,197)
(22,440)(6,316)(17,531)
(6,088)(5,878)(13,289)
Net cash from/(used in) financing activities
Cash provided from:
Co-operative Control Shares paid up
914821821
Bank loans & borrowings
7,0009,000(10,500)
7,9149,821
(9,679)
Cash applied to:
Repurchase of Co-operative Control Shares
(842)(1,355)(1,380)
Dividends paid to Shareholders of the Group
(1,900)- -
Interest paid on Co-operative Control Shares
(543)- -
(3,285)(1,355)(1,380)
4,6298,467(11,059)
Net increase/(decrease) in cash balances3,9492,1561,012
Cash balances at beginning of period
3,4582,667
2,667
Effect of exchange rate changes on cash held
154(87)
(220)
Closing cash balances7,5614,7363,458
Page 4 of 13

Statement of Changes in Equity
for the six months ended 30 November 2017
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 201658,464
(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
auditedauditedauditedauditedauditedauditedaudited
58,464
(41)798
31,025120,7048210,957
----
20,56823220,800
-
(224)
----
(224)
--
830
---
830
---1,049--
1,049
-(224)8301,049
-
-1,655
-(224)8301,04920,56823222,455
-------
-------
----13(13)-
----13(13)-
58,464(265)1,62832,074141,285227233,413
Acquisition of minority interest in subsidiary
Total Changes in ownership interests
Net change in fair value of available for sale financial assets
Total other comprehensive income/(loss)
Total comprehensive income/(loss) for the year
Total contributions by and distributions to owners
Balance at 31 May 2017
Changes in ownership interests
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
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 fixed assets
Balance at 30 November 2016
Balance at 1 June 2016
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
Page 5 of 13

Statement of Changes in Equity (continued)
for the six months ended 30 November 2017
LIC Investment
Shares
Foreign Currency
Hedge Reserve
Available for Sale
Asset Reserve
Revaluation
Reserve
Retained
Earnings
Non Controlling
interests
Total Equity
unauditedunauditedunauditedunauditedunauditedunauditedunaudited
58,464
(265)1,628
32,074141,285227233,413
----14,85421315,067
--
2,362
--
2,362
--2,362---2,362
--2,362-14,85421317,429
----(1,900)-
(1,900)
----(1,900)-(1,900)
(1,645)
1,645
-
58,464(265)3,99030,429155,884440248,942
Balance at 30 November 2017
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Dividends to equity holders
Total contributions by and distributions to owners
Total other comprehensive income/(loss)
Total comprehensive income/(loss) for the period
Net change in fair value of available for sale financial assets
Profit/(loss) for the period
Other comprehensive income
Total comprehensive income for the period
In thousands of New Zealand dollars
Balance at 1 June 2017
Adjustments relating to disposal of fixed assets
Page 6 of 13

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



These financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting
Practice ('NZ GAAP') as appropriate for profit oriented entities; which in the case of the Group is the New Zealand
equivalent to International Accounting Standard 34. The Interim Financial Statements should be read in conjunction with
the annual report for the year ended 31 May 2017. The accounting policies applied are consistent with those used in the
comparative period (the six months to 30 November 2016) and in the audited annual report for the year ended 31 May
2017.
Livestock Improvement Corporation Limited ('LIC' or the 'Parent') is a company domiciled in New Zealand, registered
under the Companies Act 1993 and the Co-operative Companies Act 1996, and listed on the Alternative Board of the
New Zealand Stock Exchange Limited ('NZAX'). The Parent is an FMC reporting entity for the purposes of the Financial
Reporting Act 2013 and the Financial Market Conducts Act 2013. Its financial statements comply with these Acts.
These financial statements of LIC, as at and for the six months ended 30 November 2017, comprise LIC and its
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.
- Farm Software. Includes the provision of data recording and farm management information services.
Other operating segments include international operations, support services, research & development, diagnostics, animal health & treatment services, LIC Deer Ltd, animal evaluation and leadership and governance support services
for the Group. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2017 or 2016.
Information regarding the operations of each reportable segment is included below. Performance is measured based on segment gross margin before administrative and other fixed costs, interest, finance expenses and income tax.
Segment gross margin is used to measure performance as the CODM believes that such information is the most relevant in evaluating the results of certain segments. The strategic business units offer different products and services
and are managed separately because they require different technology and operational strategies.
Figures for comparative periods have been adjusted to reflect changes in the segment structure used for reporting to the CODM. These changes include the transfer of heat detection consumables from the Farm Automation segment
to NZ Markets Genetics and the transfer of tag products to the Other segment from Farm Software.
The Group has identified its Chief Operating Decision Maker (CODM) to be its Chief Executive (CE). This has been determined on the basis that it is the CE who decides the allocation of resources to segments and assesses their
performance.
The Group has determined it has four operating segments which are reportable, all other operating segments have been included in 'Other segments'. The four reportable segments which are described below, are the Group's
strategic business:
The operating segments of the Group have been determined on the components of the entity that the CODM monitors in making decisions about operating matters. Such components have been identified on the basis of internal
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 predominantly 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.
External revenue from provision of goods and services in NZ market genetics, herd testing, farm software and other segments is recognised in profit or loss, measured at the fair value of the consideration received or receivable, net of
returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated
costs and possible return of goods can be estimated reliably and there is no continuing management involvement with the goods.
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
201720162017201720162017201720162017201720162017201720162017201720162017201720162017
In thousands of New Zealand dollars Audited Audited Audited Audited Audited Audited Audited
External revenues
85,45773,84080,93812,6299,73524,63114,44513,45627,14812,8697,47312,933125,400104,504145,65027,41526,58057,879
- - -
Inter-segment revenue
- - - - - - - - - 1,368 1,0061,340 1,368 1,0061,340- 348138 (1,368) (1,354) (1,478)
Total Revenue
85,457 73,840 80,938 12,629 9,735 24,631 14,445 13,456 27,148 14,237 8,479 14,273 126,768 105,510 146,990 27,415 26,928 58,017 (1,368) (1,354) (1,478)
Reportable segment profit before income tax
60,065 48,874 52,978 6,208 4,146 11,991 10,984 10,420 20,768 5,998 3,4175,492 83,255 66,856 91,229 13,955 11,219 22,503- - -
6 months to
30 Nov
6 months to
30 Nov
12 months to
31 May
201720162017
Audited
152,815 131,084 203,529
- - -
Total Revenue
152,815 131,084 203,529
97,210 78,075 113,732
Unallocated amounts:
(74,724) (49,742) (105,657)
(884) (1,392)
(2,241)
- -
24,663
21,602 26,941 30,498
EliminationsHerd TestingTotal Reportable SegmentsOtherNZ Market GeneticsFarm SoftwareFarm Automation
Fair value adjustments - Bull Team
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
UnauditedUnauditedUnaudited
Total
Unaudited
UnauditedUnauditedUnauditedUnaudited
In thousands of New Zealand dollars
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
2017
6 months
to 30 Nov
2016
12 months
to 31 May
2017
Unaudited Unaudited Audited
Acquisitions4,5836853,798
Disposals22,2291,82219,755
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
2017
6 months
to 30 Nov
2016
12 months
to 31 May
2017
Unaudited Unaudited Audited
Profit/(loss) for the period15,06719,29520,800
Adjustments for:
Depreciation4,0585,0799,617
Amortisation10,2448,66118,468
Change in deferred taxation575(25)7,954
Change in fair value of the Bull Team- - (24,663)
Gain/(loss) on sale of fixed assets(511)(328)(1,125)
Other adjustments325- 258
14,691 13,38610,508
Change in inventories (increase)/decrease2921,1712,614
Change in trade & other receivables (increase)/decrease(31,995) (38,232)(6,335)
Change in biological assets (increase)/decrease990(54)(760)
Change in trade & other payables increase/(decrease)(275) (3,824)(715)
Change in provisions increase/(decrease)6,2347,324(210)
Items reclassified to/from Investing/Financing activities404502(544)
(24,350) (33,113)(5,949)
Net cash from operating activities5,408(433)25,359
7.Capital commitments
8. Events subsequent to reporting date
There have been no significant events subsequent to the reporting date.
LIC's business, particularly the Parent's artificial breeding business, is highly seasonal. November results, since they
incorporate the majority of the artificial breeding revenues but not a similar proportion of total costs, are not indicative of the
second half result nor, therefore, the full year result.
As at 30 November 2017 the Group had entered into contracts to purchase fixed and intangible assets for $1.660 million
(30 November 2016: $1.049 million; 31 May 2017: $1.781 million).
Fixed asset disposals during the 6 months to 30 November 2017 include the sale of Riverlea Road herd testing and
diagnostics depot, land and buildings associated with Deer Improvement and operational vehicles.
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
2017
6 months
to 30 Nov
2016
12 months
to 31 May
2017
UnauditedUnauditedAudited
Short term employee benefits2,0561,6103,273
Defined contribution superannuation plans- 25-

2,0561,6353,273
Transaction valueBalance outstanding
6 months
to 30 Nov
2017
6 months
to 30 Nov
2016
12 months
to 31 May
2017
6 months
to 30 Nov
2017
6 months
to 30 Nov
2016
12 months
to 31 May
2017
Unaudited Unaudited Audited Unaudited Unaudited Audited
Sale of goods and services
1,177
814
2,390316332297
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
913,575 Co-operative Control Shares have been issued during the period.
In relation to the 2017 financial year LIC declared a dividend of 8.55c per Co-operative Control Share and 6.44c per
Investment Share, paid to shareholders on 18 August 2017. No other dividends have been declared in the period.
As at 30 November 2017 net tangible assets per investment Share were $5.90 (as at 30 November 2016 they were $5.22).
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and
non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based
on the following methods. Where applicable, further information about the assumptions made in determining fair values is
disclosed in the notes specific to that asset or liability.
The fair value of land and buildings is based on market values. Fair values of land have been determined by
using a direct comparison methodology and the fair value of buildings have been determined by using a
capitalised rental methodology. Land and Buildings would fall under level 2 in the fair value hierarchy.
In thousands of New Zealand dollars
842,416 Co-operative Control Shares have been repurchased during the period.
In accordance with the Financial Reporting Act 2013 these interim financial statements are not required to be audited. In line
with previous years these interim financial statements have not been audited.
In the normal course of business, the Group is subject to claims against it. All current claims are contested and defended.
No provision has been made in these financial statements, as Directors expect that the possibility of any material outflow in
settlement is remote.
Sale of goods and services on normal trade
terms to Directors and key management
personnel during period
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).
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(ie, as prices) or indirectly (ie, derived from prices).
The fair value of livestock held for trading is based on the market price of livestock of similar age, breed and
genetic make-up. This livestock would fall under level 2 in the fair value hierarchy.
The fair value of elite bulls, for which there is no active market, is determined using a discounted cash flow
approach. The elite bull team would fall under level 3 in the fair value hierarchy.
The table below analyses financial instruments carried at fair value, by valuation method. The different levels
have been defined as follows:
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
201720162017201720162017201720162017201720162017
In thousands of New Zealand dollars Audited Audited Audited Audited
Derivatives - designated at fair value through profit or loss
- - - (160)(98) (206)- - - (160)(98) (206)
Available for sale investments & derivatives
8,112 1,307 1,256 5,212 2,971 3,780153162146 13,477 4,440 5,181
There have been no transfers between levels in either direction during the period
Level 2
UnauditedUnauditedUnaudited
Level 1Level 3Total
Unaudited

Page 13 of 13

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Reporting Period6 months to 30 November 2017
Previous Reporting Period6 months to 30 November 2016
Amount (000's)Percentage change
Revenue from ordinary activities$NZ151,47916.23%
Profit (loss) from ordinary activities after
tax attributable to security holders
$NZ15,067-21.91%
Net profit (loss) attributable to security
holders
$NZ15,067-21.91%
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 our business
activity and are not indicative of the second half, nor the full year
result. For commentary on the results, please refer to the market
statement.