2018 Interim Report

SCALES CORPORATION LIMITED
2018 INTERIM REPORT

Agribusiness helps form the
backbone of New Zealand’s economy.
We are passionate about Agribusiness.
We believe in creating meaningful
relationships and outcomes for our
customers, partners, shareholders,
employees and the communities
that we work within.
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Contents
Directors’ Report 04
Auditor’s Review Report 07
Financial Statements 08
Notes to the Financial Statements 15
Directory 26

The Board is pleased to report a strong start to the financial year. Net profit after tax
for the Group for the six months ended 30 June 2018 (1H18) was $34.8 million, with
net profit after tax for Continuing Operations of $29.3 million. These results represent
increases of 22 per cent for the total Group, and 20 per cent for Continuing Operations,
on the previous half year, ended 30 June 2017 (1H17) (restated).
Highlights
Highlights for 1H18 included:
• Positive first half trading across the Group. In particular:
–Another record year of volumes at Mr Apple.
–Improved utilisation and volumes within Storage
& Logistics.
–An increase in volumes sold within Food Ingredients.
• The sale and settlement of the Liqueo business in
August 2018.
• The conditional sale of Polarcold in June 2018.
EBITDA
1
for the Group for the six month period was $57.1
million, with EBITDA for Continuing Operations of $46.7
million, and $10.4 million for Discontinued Operations
(Polarcold and Liqueo).
In the Horticulture division, Mr Apple capitalised on a return to
expected growing conditions after the challenging season in
2017 to deliver another record crop and export volume. It also
continued to benefit from ongoing investment in the Middle
East and China markets and strong demand from Europe,
delivering an overall increase in apple prices.
The Storage & Logistics division delivered a satisfying result
with increased volumes and improved utilisation building on
prior year operations. The sale of Liqueo settled on 13 August
2018 and the sale of Polarcold, effective 1 June 2018, is only
subject to Overseas Investment Office (OIO) approval. There
was also a significant increase in sales volumes at Meateor
Foods in our Food Ingredients division due to favourable
market conditions.
Our financial position continues to be strong:
• Net tangible assets per share as at 30 June 2018 were
$1.56, compared to $1.55 as at 30 June 2017 (restated).
• The ratio of net debt to equity as at 30 June 2018 was 33 per
cent, compared to 29 per cent as at 30 June 2017 (restated).
• Average net debt (being the average of the 30 June and
31 December net debt balances) was $60.0 million as at
30 June 2018, compared to $51.8 million as at 30 June
2017 (restated), an increase of $8.2 million. This increase
was primarily due to increases in working capital and the
exclusion of Polarcold and Liqueo cash balances.
1
Earnings Before Interest, Tax, Depreciation and Amortisation.
Tim Goodacre and Andy Borland
Directors’ Report
04
SCALES CORPORATION LIMITED
DIRECTORS’ REPORT

Divisions
Horticulture
Our Horticulture division delivered higher volumes due, in part,
to more settled growing conditions. Mr Apple’s own grown
export volume was up around nine per cent on the prior year
to 3.86 million TCEs (tray carton equivalent) and we achieved
an export packout rate of 76 per cent.
Our premium variety volumes saw a significant 17 per cent
increase to 1.89 million TCEs, almost half our overall volume,
in line with our orchard redevelopment strategy. We also
delivered a two per cent increase in traditional variety volumes
to 1.97 million TCEs.
Weighted average sale prices were ahead of last year,
supported by favourable market conditions. However, we have
anticipated a softening in demand for the conclusion of
the season.
There is ongoing good progress on our strategy to become
a leading apple brand in China, taking advantage of the fact
there is currently no dominant brand in that market. Our sales
effort continues to be supported by our shareholder, China
Resources Ng Fung Limited, and we continue to increase
production of premium varieties that specifically cater to the
Asia and Middle East markets. This includes our ongoing
investment in brands such as Dazzle
®
.
Storage & Logistics
It was a strong first six months of the year for the Storage
& Logistics division, with more settled cropping conditions
resulting in higher volumes and utilisation for Polarcold
and Scales Logistics, and improved trading in our Auckland
coldstore and at Liqueo.
The sale of two of our Storage & Logistics businesses, Liqueo and
Polarcold, is in line with our refreshed strategy noted in our 2017
Annual Report and at our Annual Shareholders’ Meeting. These
divestments will allow us to allocate capital to agribusiness-
focussed opportunities that align with our strengths.
Food Ingredients
Once again Meateor increased sales volumes and delivered
a solid financial contribution, partly supported by favourable
market conditions. However, sales volumes are expected to be
lower during the second half of the year.
Profruit also benefited from increased volumes due to a larger
apple crop and lower export packout.
Sustainability
We continued our sustainability journey over the last six
months with progress on a number of initiatives.
Our people continue to be our number one asset. Our results
reflect strong performances across all divisions and this is
testament to the hard work and contribution of every member
of the Scales team. For that reason, we undertook a group-
wide staff engagement survey in August, with results due
in October.
Health & Safety remains a high priority for us. Some of the
initiatives this year in Health & Safety have been the creation of
three new Health & Safety positions around the Group and the
delivery of safety culture workshops at Mr Apple.
We are committed to leaving our businesses better for the
next generation and consequently a number of environmental
programs have either commenced or are being explored
including waste audits, discussions with suppliers regarding
packaging changes, increased recycling options and a carbon
footprint certification for Mr Apple.
Strategy
As previously mentioned, our revised strategy is for a greater
focus on pure agribusiness. In particular we are attracted
to opportunities that align with our core strengths. The
divestment of Liqueo and Polarcold was the first phase of that
strategy and the proceeds of those sales will be employed in
growth and acquisition opportunities, a number of which we
are currently assessing.
Outlook
The outlook for Scales, and the overall agribusiness
environment, remains positive.
The Horticulture division has benefited this year from more
stable growing conditions and strong markets. We have
increased production of premium apples this year and continue
to focus on this, and on further developing the Mr Apple and
varietal brands, particularly for the Asia and Middle
East markets.
Scales Logistics continues to grow with the OceanAir
operations, acquired in 2017, now fully integrated into
this business.
In the Food Ingredients division, volumes have shown good
growth. We continue to be focussed on adding value to, and
increasing supply of, raw material at Meateor. At Profruit, the
larger apple crop and lower export packout has resulted in
increased supply.
Lastly, sincere thanks go to all of our staff and stakeholders,
who make Scales the business that it is. We look forward to
reporting our progress in our full year report.
Tim Goodacre
Chairman
Andy Borland
Managing Director
05
INTERIM REPORT JUNE 2018
DIRECTORS’ REPORT

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Financial Statements

Independent Review Report
to the Shareholders of Scales Corporation Limited
We have reviewed the condensed consolidated interim financial statements of Scales Corporation Limited and its subsidiaries (the
‘Group’) which comprise the consolidated statement of financial position as at 30 June 2018, and the consolidated statement of
comprehensive income for the six months ended 30 June 2018, consolidated statement of changes in equity and consolidated
statement of cash flows, and a summary of significant accounting policies and other explanatory information on pages 8 to 25.
This report is made solely to the company’s shareholders, as a body. Our review has been undertaken so that we might state to the
company’s shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the company’s shareholders as a body, for
our engagement, for this report, or for the opinions we have formed.
Board of Directors’ Responsibilities
The Board of Directors are responsible for the preparation and fair presentation of the condensed consolidated interim financial
statements, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such
internal control as the Board of Directors determine is necessary to enable the preparation and fair presentation of the condensed
consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.
Our Responsibilities
Our responsibility is to express a conclusion on the condensed consolidated interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed by the Independent Auditor of
the Entity (‘NZ SRE 2410’). NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to
believe that the condensed consolidated interim financial statements, taken as a whole, are not prepared, in all material respects, in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting. As the auditor of Scales Corporation
Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial statements.
A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with
International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on those financial statements.
Other than in our capacity as auditor and the provision of other assurance services, we have no relationship with or interests in
Scales Corporation Limited or its subsidiaries.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 30 June 2018 and
its financial performance and cash flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial
Reporting and IAS 34 Interim Financial Reporting.
Chartered Accountants
27 August 2018
Christchurch, New Zealand
07
INTERIM REPORT JUNE 2018
AUDITOR’S REVIEW REPORT

UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
(Restated)*
Year ended
31 December
2017 (Restated)*
Continuing Operations NOTE$000’s$000’s$000’s
Revenue220,120175,806335,531
Cost of sales(153,982)(117,386)(256,682)
66,13858,42078,849
Share of profits of entities accounted for using the equity method6783931,376
Administration and operating expenses(20,091)(19,550)(34,286)
Other income1791
Other losses-(224)(635)
EBITDA46,74239,04845,305
Depreciation and amortisation(4,599)(3,477)(8,579)
EBIT42,14335,57136,726
Finance revenue1724155
Finance cost(1,592)(1,679)(3,039)
PROFIT BEFORE INCOME TAX EXPENSE FROM CONTINUING
OPERATIONS
40,56833,91633,842
Income tax expense(11,237)(9,490)(9,277)
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS29,33124,42624,565
Profit from discontinued operations (net of tax)95,4364,0087,052
PROFIT FOR THE PERIOD34,76728,43431,617
Profit for the period from continuing operations is attributable to:
Equity holders of the Company29,09424,29224,124
Non-controlling Interests237134441
29,33124,42624,565
EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Basic and diluted earnings per share (cents)
Basic earnings per share (cents) - continuing operations20.817.617.4
Basic earnings per share (cents) - discontinued operations3.92.95.1
Basic earnings per share (cents) - total24.720.522.5
Diluted earnings per share (cents) - continuing operations20.817.517.3
Diluted earnings per share (cents) - discontinued operations3.92.95.1
Diluted earnings per share (cents) - total24.720.422.4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Profit for the period from discontinued operations is fully attributable to equity holders of the Company.
The notes to the financial statements on pages 15 to 25 form part of and should be read in conjunction with this statement.
*The restatements to comparative periods are explained in Notes 2 and 11.
5
5
5
5
5
5
08
SCALES CORPORATION LIMITED

UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
(Restated)*
Year ended
31 December
2017 (Restated)*
OTHER COMPREHENSIVE INCOME$000’s$000’s$000’s
Continuing Operations
Items that may be reclassified subsequently to profit or loss:
(Loss) gain on cash flow hedges(9,110)7,700(6,163)
Income tax relating to cash flow hedges2,551(2,156)1,726
(6,559)5,544(4,437)
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings--4,200
Income tax relating to buildings--(588)
--3,612
OTHER COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD(6,559)5,544(825)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD28,20833,97830,792
Total comprehensive income for the period attributable to:
Equity holders of the Company28,01033,76230,351
Non-controlling Interests198216441
28,20833,97830,792
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
The notes to the financial statements on pages 15 to 25 form part of and should be read in conjunction with this statement.
*The restatements to comparative periods are explained in Notes 2 and 11.
09
INTERIM REPORT JUNE 2018

The notes to the financial statements on pages 15 to 25 form part of and should be read in conjunction with this statement.
*The restatements to comparative periods are explained in Notes 2 and 11.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2018
UNAUDITED
Share
Capital
Revaluation
Reserve
Hedging
Reserve
Equity-
settled
Employee
Benefits
Reserve
Revaluation
Reserve
related to
discontinued
operations
Retained
Earnings
Attributable
to Owners
of the
Company
Non -
controlling
Interests
Total
$000’s$000’s$000’s$000’s$000’s$000’s$000’s$000’s$000’s
SIX MONTHS ENDED
30 JUNE 2018
At 1 January 2018 93,750 61,329 3,695 430-62,272221,476441221,917
Profit for the period - - - - -34,53034,53023734,767
Other comprehensive loss for
the period
- - (6,520) - - - (6,520)(39)(6,559)
Total comprehensive (loss)
income for the period
- - (6,520) - -34,53028,01019828,208
Discontinued operations-(26,041) - -26,041 - ---
Recognition of share-based
payments
---223--223-223
Shares sold109-----109-109
Shares fully vested191--(31)-(46)114-114
Dividends paid-------(440)(440)
Dividends declared - - - - -(12,598)(12,598)-(12,598)
AT 30 JUNE 201894,05035,288(2,825)62226,04184,158237,334199237,533
SIX MONTHS ENDED 30
JUNE 2017 (Restated)*
At 1 January 2017 89,748 57,717 8,132 503 -58,084214,184406 214,590
Profit for the period - - - - - 28,300 28,300134 28,434
Other comprehensive income
for the period
- - 5,462 - - - 5,46282 5,544
Total comprehensive income
for the period
- - 5,462 - -28,30033,76221633,978
Recognition of share-based
payments
- - - 203 - - 203-203
Shares sold106-----106-106
Dividends paid - - - - - --(406) (406)
Dividends declared-----(13,811)(13,811)-(13,811)
AT 30 JUNE 201789,85457,717 13,594706-72,573234,444216234,660
YEAR ENDED 31
DECEMBER 2017
(Restated)*
At 1 January 201789,748 57,717 8,132 503- 58,084 214,184406 214,590
Profit for the year - - - - -31,17631,17644131,617
Other comprehensive loss
for the year
- 3,612(4,437) - --(825)-(825)
Total comprehensive income
(loss) for the year
- 3,612(4,437) - -31,17630,35144130,792
Recognition of share-based
payments
- - - 389- - 389-389
Shares sold179-----179-179
Shares issued970-----970-970
Shares fully vested2,853--(462)-(591)1,800-1,800
Dividends paid - - - - -(13,811)(13,811)(406) (14,217)
Dividends declared-----(12,586)(12,586)-(12,586)
AT 31 DECEMBER 201793,75061,3293,695430-62,272221,476441221,917
10
SCALES CORPORATION LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
UNAUDITED
30 June 201830 June 2017
(Restated)*
31 December
2017 (Restated)*
NOTE$000’s $000’s$000’s
EQUITY
Share capital94,05089,85493,750
Revaluation reserve35,28857,71761,329
Hedging reserve(2,825)13,5943,695
Equity-settled employee benefits reserve622706430
Revaluation reserve related to discontinued operations26,041--
Retained earnings84,158 72,57362,272
Equity attributable to Scales Corporation Limited
Shareholders
237,334 234,444221,476
Equity attributable to Non-controlling Interests199 216441
TOTAL EQUITY 237,533234,660221,917
Represented By:
CURRENT ASSETS
Cash and bank balances1,84115,1245,690
Trade and other receivables73,36166,23223,437
Other financial assets73,9178,5656,415
Agricultural produce61,55864,75020,189
Inventories27,75022,39822,212
Prepayments1,8092,2683,423
170,236179,33781,366
Assets held for sale111,995--
TOTAL CURRENT ASSETS282,231179,33781,366
NON-CURRENT ASSETS
Property, plant and equipment133,445225,862228,881
Investments accounted for using the equity method4,6854,0244,507
Goodwill16,18816,22218,177
Other financial assets75,23515,7167,764
Computer software1,1356741,811
TOTAL NON-CURRENT ASSETS160,688 262,498261,140
TOTAL ASSETS442,919441,835342,506
CURRENT LIABILITIES
Trade and other payables57,40163,17822,215
Dividend declared412,53814,00612,586
Borrowings41,00044,0006,500
Current tax liabilities14,82216,0762,739
Other financial liabilities77,0881,7154,331
132,849138,97548,371
Liabilities associated with assets held for sale18,303--
TOTAL CURRENT LIABILITIES151,152138,97548,371
NON-CURRENT LIABILITIES
Borrowings40,00040,00040,000
Deferred tax liabilities8,66624,82128,175
Other financial liabilities75,568 3,3794,043
TOTAL NON-CURRENT LIABILITIES 54,23468,20072,218
TOTAL LIABILITIES205,386 207,175120,589
NET ASSETS237,533 234,660221,917
The notes to the financial statements on pages 15 to 25 form part of and should be read in conjunction with this statement.
*The restatements to comparative periods are explained in Notes 2 and 11.
11
INTERIM REPORT JUNE 2018

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
UNAUDITEDAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
NOTE$000’s$000’s$000’s
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers193,889168,068393,145
Dividends received5175001,018
Interest received1834175
194,424168,602394,338
Cash was disbursed to:
Payments to suppliers and employees(203,564)(178,993)(345,660)
Interest paid(1,592)(1,679)(3,039)
Income tax paid (5,093)(5,728)(13,271)
(210,249)(186,400)(361,970)
NET CASH (USED IN) GENERATED BY OPERATING ACTIVITIES (15,825)(17,798)32,368
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Advances repaid30381866
Sale of property, plant and equipment and computer software-66147
3031471,013
Cash was applied to:
Net cash outflow on acquisition of businesses--(978)
Purchase of computer software(297)(147)(1,654)
Purchase of shares in unlisted companies--(5)
Purchase of property, plant and equipment(5,301) (5,283)(11,826)
(5,598)(5,430)(14,463)
NET CASH USED IN INVESTING ACTIVITIES(5,295) (5,283)(13,450)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Proceeds from term facility borrowings-10,00010,000
Proceeds from seasonal facility borrowings50,50039,00052,500
Treasury stock sold109 106179
50,60949,10662,679
Cash was applied to:
Repayment of seasonal facility borrowings(16,000)(6,000)(57,000)
Dividends paid(12,646)(10,850)(24,856)
Dividends paid to Non-controlling Interest(440)(406)(406)
(29,086)(17,256)(82,262)
NET CASH GENERATED BY (USED IN) FINANCING ACTIVITIES21,52331,850(19,583)
NET INCREASE (DECREASE) IN NET CASH4038,769(665)
Cash and cash equivalents at the beginning of the period5,6906,3556,355
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD6,09315,1245,690

Represented by:
Cash and bank balances1,84115,1245,690
Cash and bank balances attributable to discontinued operations 94,252- -
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 6,09315,1245,690
The notes to the financial statements on pages 15 to 25 form part of and should be read in conjunction with this statement.
12
SCALES CORPORATION LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
For and on behalf of the Board, who authorised the issue of these interim financial statements on 27 August 2018.
UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
(Restated)*
Year ended
31 December
2017 (Restated)*
$000’s$000’s$000’s
NET CASH (USED IN) GENERATED BY OPERATING ACTIVITIES
Reconciliation of profit for the period to net cash generated by
operating activities:
Profit for the period34,76728,43431,617
Add non-cash items:
Deferred tax(5,935)(5,522)1,126
Depreciation and amortisation7,0626,22214,249
Share of equity accounted results(678)(393)(1,376)
Share-based payments231203523
Change in gross liability on Fern Ridge Produce Limited put option-224628
Add items classified as investing and financing activities:
Working capital amounts included in acquisition of businesses--(54)
Dividends received from equity accounted company5005001,000
Gain on disposal of property, plant and equipment193336
Changes in net assets and liabilities:
Trade and other receivables(60,857)(48,704)(5,908)
Agricultural produce(41,369)(46,317)(1,756)
Inventories(5,670)(6,033)(5,847)
Prepayments1,3821,387232
Trade and other payables39,97841,131168
Current tax14,57111,067(2,270)
NET CASH (USED IN) GENERATED BY OPERATING ACTIVITIES(15,825) (17,798)32,368
Tim Goodacre
Chairman
Andy Borland
Managing Director
*The restatements to comparative periods are explained in Notes 2 and 11.
The notes to the financial statements on pages 15 to 25 form part of and should be read in conjunction with this statement.
13
INTERIM REPORT JUNE 2018

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Scales Corporation Limited (the “Company”) is a for-profit entity domiciled and registered under the Companies Act 1993 in New
Zealand. It is an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The Group consists of Scales
Corporation Limited, its subsidiaries and a joint venture. The principal activities of the Group are to provide logistics services, grow
apples, export products, provide insurance services to companies within the Group and operate storage and processing facilities.
These unaudited condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted
Accounting Practice (“GAAP”). They comply with the New Zealand Equivalent to International Accounting Standard 34 (NZ IAS 34)
Interim Financial Reporting and International Accounting Standard 34 (IAS 34) Interim Financial Reporting, as applicable for profit
orientated entities. Other than as disclosed below, significant accounting policies applied by the Group during the period have been
applied consistently to all periods presented in these condensed consolidated interim financial statements.
Non-current assets held for sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through
a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is
available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or
disposal group) and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for
recognition as a completed sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary
are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling
interest in its former subsidiary after the sale.
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value
less cost to sell.
Application of NZ IFRS 9 (2014) Financial Instruments
Application of NZ IFRS 9 (2014) Financial Instruments which became effective on 1 January 2018 resulted in the time value of
options and its related tax effect being recognised in other comprehensive income instead of profit or loss. Under NZ IFRS 9 (2014),
the time value of options forms a part of the hedging instrument and changes in their value are recognised in other comprehensive
income. Comparatives have been restated retrospectively as disclosed in Note 11. The Group has previously adopted NZ IFRS
9 (2010) which amended classification and measurement of financial instruments. Application of NZ IFRS 9 (2014) includes
amendments to impairment and hedge accounting.
In relation to the impairment of financial assets, NZ IFRS 9 (2014) requires an expected credit loss model, as opposed to an incurred
credit loss model under NZ IAS 39. The expected credit loss model requires an entity to account for expected credit losses and
changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition. In other
words, it is no longer necessary for a credit event to have occurred before credit losses are recognised.
The new general hedge accounting requirements retain the three types of hedge accounting mechanisms currently available in NZ
IAS 39. Under NZ IFRS 9 (2014), greater flexibility has been introduced to the types of transactions eligible for hedge accounting,
specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-
financial items that are eligible for hedge accounting. In addition, the effectiveness test has been overhauled and replaced with
the principle of an “economic relationship”. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced
disclosure requirements about an entity’s risk management activities have also been introduced.
Impairment
Financial assets measured at amortised cost being cash and cash equivalents, trade receivables, and employee loans are subject to
the impairment provisions of NZ IFRS 9 (2014).
The Group applies the simplified approach to recognise lifetime expected credit losses for the above financial assets as required or
permitted by NZ IFRS 9 (2014). In general, the application of the expected credit loss model of NZ IFRS 9 (2014) results in earlier
recognition of credit losses and increases the amount of loss allowance recognised for those items.
Hedge Accounting
As the new hedge accounting requirements align more closely with the Group’s risk management policies, with generally more
qualifying hedging instruments and hedged items, an assessment of the Group’s current hedging relationships indicated that they
qualified as continuing hedging relationships upon application of NZ IFRS 9 (2014). Similar to the Group’s current hedge accounting
policy, the directors do not intend to exclude the forward element of foreign currency forward contracts from designated hedging
relationships. As described above, the time value of options also forms a part of the hedging instrument.
1. GENERAL INFORMATION
2. FINANCIAL STATEMENTS
15
INTERIM REPORT JUNE 2018

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Application of NZ IFRS 15 Revenue from Contracts or Customers
Application of NZ IFRS 15 Revenue from Contracts with Customers which became effective on 1 January 2018 resulted in certain
apple export contracts being treated as agency export service contracts instead of principal goods purchase and sale contracts. While
this has resulted in a reduction in revenue and cost of sales, there was no impact on net income for those periods. Comparatives
have been restated retrospectively as disclosed in Note 11.
The Group recognises revenue from the following major sources:
• sale of agricultural produce;
• sale of petfood ingredients;
• agricultural produce related services;
• logistics services.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf
of third parties. The Group recognises revenue when it transfers control of a product or service to a customer.
Sale of agricultural produce
The Group sells apples to more than 160 customers in 40 countries. Sales-related quality claim provisions are recorded in accordance
with NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets consistent with its previous accounting treatment. Revenue is
recognised when control of the goods has transferred, being when the goods have been shipped to the customer (CIF sales) or when
the goods have been sold by the customer (consignment sales).
CIF sales
Following shipment, the customer obtains control as it has full discretion over the manner of distribution and price to sell the
goods, has the primary responsibility when onselling the goods and bears the risks of loss in relation to the goods. A receivable is
recognised by the Group when it loses control which is when the goods are delivered on the ship at the port of shipment as this
represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required
before payment is due.
Consignment sales
A receivable is recognised by the Group when it loses control which is when the goods are confirmed to be on-sold by the
customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of
time is required before payment is due.
Sale of petfood ingredients
The Group sells petfood ingredients to a number of international and domestic customers. Revenue is recognised when control of
the goods has transferred, being when the goods have been delivered to the customer (DDP sales) or when shipped to the customer
(CIF and FOB destination sales).
DDP sales
Following delivery, the customer obtains control as it has full discretion over the manner of distribution and price to sell the goods,
has the primary responsibility when onselling the goods and bears the risks of loss in relation to goods. A receivable is recognised
by the Group when it loses control which is when the goods are delivered to the destination named by the customer as this
represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required
before payment is due.
CIF and FOB destination sales
Same as above under “Sale of agricultural produce - CIF sales”.
Agricultural produce related services
The Group provides a number of agricultural produce related services to external apple growers, including packaging, cartage, export
documentation and export services.
Each of those services is considered to be a distinct service as it is both regularly supplied by the Group to customers on a stand-
alone basis and is available for customers from other providers in the market.
A receivable is recognised by the Group when the service performance has been completed, and the performance obligation is
satisfied as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is
required before payment is due.
Logistics services
The Group provides marine and air logistics services to domestic customers. A receivable is recognised by the Group when the service
performance has been completed, which is when the shipment is organised and the goods are on the ship or the aircraft. The
performance obligation is satisfied as this represents the point in time at which the right to consideration becomes unconditional, as
only the passage of time is required before payment is due.
These financial statements should be read in conjunction with the financial statements and related notes included in the Company’s
Annual Report for the year ended 31 December 2017.
The information is presented in thousands of New Zealand dollars unless otherwise stated.
2. FINANCIAL STATEMENTS (continued)
16
SCALES CORPORATION LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
All business segments are subject to seasonal fluctuation. The apple crop has been picked and packed and the export programme
is well under way in the first half of the year. Higher volumes are processed through the food ingredients plants in the first half of
the year due to the seasonal nature of the meat industry and there is greater utilisation of storage and logistics services over the first
half of the year as seasonal products are stored and then shipped to export markets. At 30 June the harvested apple crop held in
inventory is valued at fair value less estimated costs to sell. At 31 December the unharvested crop is at fair value less estimated costs
to sell. Both the harvested crop at 30 June and the unharvested crop at 31 December are included in agricultural produce.
During the six months ended 30 June 2018 the Directors paid an interim dividend of 9.0 cents per share and resolved to pay a final
dividend of 9.0 cents per share in respect of the year ended 31 December 2017. This final dividend was paid on 6 July 2018.
During the six months ended 30 June 2017 the Directors paid an interim dividend of 8.0 cents per share in respect of the year ended
31 December 2016 and resolved to pay a final dividend of 10.0 cents per share in respect of the year ended 31 December 2016. This
final dividend was paid on 7 July 2017.
3. SEASONALITY OF BUSINESS
4. DIVIDENDS
5. EARNINGS PER SHARE
UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
$000’s$000’s$000’s
Profit attributable to equity holders of the Company - used in the
calculation of earnings per share
From continuing operations29,09424,29224,124
From discontinued operations5,4364,0087,052
Total34,53028,30031,176
Basic and diluted earnings per share
Weighted average number of ordinary shares139,769,286 137,998,720 138,738,233
Effect of dilutive ordinary shares (non-vested Senior Executive Share
Scheme)
199,783 512,358 751,619
Weighted average number of Ordinary Shares for diluted
earnings per share
139,969,069 138,511,078 139,489,852
Basic earnings per share (cents) - continuing operations20.817.617.4
Basic earnings per share (cents) - discontinued operations3.92.95.1
Basic earnings per share (cents) - total24.720.522.5
Diluted earnings per share (cents) - continuing operations20.817.517.3
Diluted earnings per share (cents) - discontinued operations3.92.95.1
Diluted earnings per share (cents) - total24.720.422.4
17
INTERIM REPORT JUNE 2018

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Food
IngredientsHorticulture LogisticsOtherEliminationsTotal
$000’s$000’s$000’s$000’s$000’s$000’s
Six months ended 30 June 2018
Total segment revenue45,521143,84246,2221,875(17,340)220,120
Inter-segment revenue--(15,655)(1,685)17,340-
Revenue from external customers45,521143,84230,567190-220,120
Segment profit (loss) before income tax5,94536,1082,796(4,281)-40,568
Segment assets38,013280,88115,114(3,084)-330,924
Segment liabilities9,81985,7729,05682,436-187,083
Six months ended 30 June 2017
(Restated)
Total segment revenue33,978120,33536,9271,934(17,368)175,806
Inter-segment revenue--(15,777)(1,591)17,368-
Revenue from external customers33,978120,33521,150343-175,806
Segment profit (loss) before income tax3,75432,1683,022(5,028)-33,916
Segment assets29,850296,4158,828(2,407)-332,686
Segment liabilities6,76296,6511,59582,657-187,665
Year ended 31 December 2017
(Restated)
Total segment revenue68,855221,96367,5603,779(26,626)335,531
Inter-segment revenue--(23,495)(3,131)26,626-
Revenue from external customers68,855221,96344,065648-335,531
Segment profit (loss) before income tax7,51130,4953,419(7,583)-33,842
Segment assets35,743182,3629,4844,198-231,787
Segment liabilities7,90638,2295,10351,299-102,537
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
No single external customer’s revenue accounts for 10% or more of the Group’s revenue. All non-current assets are located in
New Zealand.
The Group’s continuing operations comprise the following operating segments:
Food Ingredients: processing and marketing of food ingredients such as pet food ingredients and juice concentrate. Meateor
Group Limited, Meateor Foods Limited, Meateor Foods Australia Pty Limited and Profruit (2006) Limited.
Horticulture: orchards, fruit packing and marketing. Mr Apple New Zealand Limited, New Zealand Apple Limited and Fern Ridge
Produce Limited.
Logistics: logistics services. Scales Logistics Limited and OceanAir Freight Pty Limited.
Other: Scales Corporation Limited, Geo. H. Scales Limited, Scales Employees Limited, Scales Holdings Limited and Selacs
Insurance Limited.
6. SEGMENT INFORMATION
18
SCALES CORPORATION LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
7. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES
Foreign Currency Derivative Instruments
The Group is exposed to currency risk as a result of normal trading transactions denominated in foreign currencies. The Group uses
foreign currency derivative financial instruments to manage its currency risk. The fair value of foreign currency derivative financial
instruments at the reporting date is determined on a discounted cash flow basis whereby future cash flows are estimated based on
forward exchange rates and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. The
Group’s forward foreign exchange contracts and foreign exchange options are classified as Level 2 in the fair value hierarchy.
These foreign currency instruments are designated as cash flow hedges in order to reduce the Group’s cash flow exposure resulting
from movements in foreign currency exchange rates on anticipated future transactions. It is anticipated that the sales will take place
during the 2018 to 2022 financial years at which stage the amount deferred in equity will be released into profit or loss.
UNAUDITEDAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
31 December
2017
$000’s$000’s$000’s
Current financial assets:
At fair value:
Foreign currency derivative instruments3,9178,5426,415
At amortised cost:
Advances to other entities-23-
3,9178,5656,415
Non-current financial assets:
At fair value:
Foreign currency derivative instruments4,18015,4066,544
Shares in unlisted companies211206211
At amortised cost:
Employee loans8441041,009
5,23515,7167,764
Current financial liabilities at fair value:
Foreign currency derivative instruments4,0234961,312
Interest rate swap contracts and forward rate agreements495150481
Fern Ridge Produce Limited put option2,5701,0692,538
7,0881,7154,331
Non-current financial liabilities at fair value:
Foreign currency derivative instruments4,8171,3103,318
Interest rate swap contracts and forward rate agreements7511,005725
Fern Ridge Produce Limited put option-1,064-
5,5683,3794,043
19
INTERIM REPORT JUNE 2018

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Interest Rate Swap Contracts and Forward Rate Agreements
The Group is exposed to interest rate risk as it borrows funds at floating interest rates. Management monitors the level of interest
rates on an ongoing basis and uses interest rate swaps and forward rate agreements to manage interest rate risk.
Under interest rate swap contracts and forward rate agreements, the Group agrees to exchange the difference between fixed and
floating rate interest amounts calculated on agreed notional principal amounts. Such contracts, some of which commence in future
reporting years, enable the Group to mitigate the risk of changing interest rates on the cash flow exposures on the issued floating
rate debt. The fair value of these contracts at the reporting date is determined by discounting the future cash flows using the
forward interest rate curves at reporting date and the credit risk inherent in the contracts. The average contracted fixed interest rate
is based on the notional principal amount at balance date. The Group’s interest rate swap contracts and forward rate agreements are
classified as Level 2 in the fair value hierarchy.
These interest rate swap contracts and forward rate agreements, exchanging floating rate interest amounts for fixed rate interest
amounts, are designated as cash flow hedges in order to reduce the Group’s cash flow exposure resulting from floating interest
rates on borrowings. The interest rate swap and forward rate agreement payments, and the interest payments on the loans occur
simultaneously, and the amount deferred in equity is recognised in profit or loss over the period that the floating rate interest
payments on debt impact profit or loss.
(a) Transactions with Related Parties
Certain Directors and senior management have relevant interests in companies with which Scales has transactions in the normal
course of business. A number of Scales directors are also non-executive directors of other companies. Any transactions undertaken
with these entities have been entered in the ordinary course of business on a third party arm’s length basis.
(b) Key Management Personnel Remuneration
The compensation of the directors and executives, being the key management personnel of the Group, is as follows:
UNAUDITEDAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
$000’s$000’s$000’s
Short-term employee benefits1,4711,4912,820
Share-based payments850394433
Post-employment benefits5253102
2,3731,9383,355
(c) Transactions with Equity Accounted Entity
UNAUDITEDAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
$000’s$000’s$000’s
Revenue from sale of goods1,165700890
Revenue from services-351968
Dividends received5005001,000
Trade receivables at balance date111476
7. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES (continued)
8. RELATED PARTY DISCLOSURES
20
SCALES CORPORATION LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
On 9 May 2018 the Company announced an agreement to sell its coldstorage businesses, Polarcold Stores Limited and Whakatu
Coldstores Limited (which were merged on 1 January 2018 under the Polarcold brand). The sale, for consideration of $151.4 million,
is to Emergent Cold, a global cold chain company. The transaction is subject only to OIO approval, after which it becomes effective
from 1 June 2018. All earnings post 1 June 2018 accrue to the purchaser. Interest will be charged on the purchase price until the
sole condition is satisfied. These two elements will be reflected as a purchase price adjustment and have been factored into the
consideration referred to above.
On 13 August 2018 the Company entered into an unconditional agreement to sell its bulk liquid storage business, Liqueo Bulk
Storage Limited. Settlement occurred on the same date. The sale, for consideration of $20 million, was to a company related to the
SBT Group, a Taranaki based Group with interests in rendering and animal by-products.
The results of discontinued operations are set out below:
9. DISCONTINUED OPERATIONS
UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
$000’s$000’s$000’s
Revenue35,097 29,804 57,570
Expenses(27,169)(24,013)(47,668)
Profit before tax from discontinued operations7,928 5,791 9,902
Income tax expense(2,492)(1,783)(2,850)
Profit for the period from discontinued operations5,436 4,008 7,052
UNAUDITED
Assets
Cash and bank balances4,252
Trade and other receivables10,936
Inventories132
Prepayments232
Property, plant and equipment93,895
Goodwill1,989
Computer software559
111,995
Liabilities
Trade and other payables4,792
Current tax liabilities2,488
Deferred tax liabilities11,023
18,303
Net assets directly associated with disposal group93,692
Amounts included in accumulated other comprehensive income:
Revaluation reserve26,041
Reserve related to discontinued operations26,041
The major classes of assets and liabilities of Polarcold Stores Limited, Whakatu Coldstores Limited and Liqueo Bulk Storage Limited
classified as held for sale as at 30 June 2018 are as follows:
21
INTERIM REPORT JUNE 2018

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
$000’s$000’s$000’s
The net cash flows pertaining to the entities referred to above are
as follows:
Operating7,2897,53610,832
Investing(1,727)(1,949)(3,759)
Financing---
Net cash inflow5,5625,5877,073
UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
$000’s$000’s$000’s
Commitments entered into as at reporting date were:
Bearer plants1,9111,3892,161
1,9111,3892,161
9. DISCONTINUED OPERATIONS (continued)
10. CAPITAL COMMITMENTS
22
SCALES CORPORATION LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
UNAUDITED
Six months ended
30 June 2017
Previously
Reported
AdjustmentsRestated
NZ IFRS 5NZ IFRS 9NZ IFRS 15
$000’s$000’s$000’s$000’s$000’s
Continuing Operations
Revenue216,748(29,807)-(11,135)175,806
Cost of Sales(141,271) 12,750-11,135(117,386)
75,477(17,057)--58,420
Share of profits of entity
accounted for using the
equity method
393---393
Administration and
operating expenses
(28,070)8,520--(19,550)
Other income8338(832)-9
Other losses(227)3--(224)
EBITDA48,406(8,526)(832)-39,048
Depreciation and
amortisation
(6,222)2,745--(3,477)
EBIT42,184(5,781)(832)-35,571
Finance revenue34(10)--24
Finance cost(1,679)---(1,679)
Profit before income
tax expense from
continuing operations
40,539(5,791)(832)-33,916
Income tax expense(11,506)1,783233-(9,490)
Profit for the period
from continuing
operations
29,033(4,008)(599)-24,426
Profit from discontinued
operations (net of tax)
-4,008--4,008
PROFIT FOR THE PERIOD29,033-(599)-28,434
As described in Note 2, comparative periods were restated following the adoption of NZ IFRS 9 and NZ IFRS 15. In addition,
comparative periods were restated as required by NZ IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
11. SUMMARY OF RESTATEMENTS
23
INTERIM REPORT JUNE 2018

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
AUDITED
Year ended
31 December 2017
Previously
Reported
AdjustmentsRestated
NZ IFRS 5NZ IFRS 9NZ IFRS 15
$000’s$000’s$000’s$000’s$000’s
Continuing Operations
Revenue399,100(57,562)-(6,007)335,531
Cost of Sales(287,102)24,413-6,007(256,682)
111,998(33,149)--78,849
Share of profits of entity
accounted for using the
equity method
1,376---1,376
Administration and
operating expenses
(51,871)17,585--(34,286)
Other income233(18)(214)-1
Other losses(665)30--(635)
EBITDA61,071(15,552)(214)-45,305
Depreciation and
amortisation
(14,249)5,670--(8,579)
EBIT46,822(9,882)(214)-36,726
Finance revenue175(20)--155
Finance cost(3,039)---(3,039)
Profit before income
tax expense from
continuing operations
43,958(9,902)(214)-33,842
Income tax expense(12,187)2,85060-(9,277)
Profit for the period
from continuing
operations
31,771(7,052)(154)-24,565
Profit from discontinued
operations (net of tax)
-7,052--7,052
PROFIT FOR THE PERIOD31,771-(154)-31,617
11. SUMMARY OF RESTATEMENTS (continued)
24
SCALES CORPORATION LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2018
12. DISAGGREGATION OF REVENUE
UNAUDITED
Six months ended
30 June 2018
Six months ended
30 June 2017
Year ended
31 December
2017
$000’s$000’s$000’s
Sale of agricultural produce134,797109,536209,631
Sale of petfood ingredients44,97733,52169,117
Agricultural produce related services6,9058,5789,056
Logistics services30,56721,15044,065
Other2,8743,0213,662
220,120175,806335,531
All major sources of revenue are recognised at a point in time as disclosed in Note 2.
Revenue breakdown by operating segments is disclosed in Note 6.
Other than as disclosed in Note 9, there were no events occurring subsequent to balance date which require adjustment to or
disclosure in the financial statements.
13. EVENTS OCCURING AFTER THE REPORTING DATE
25
INTERIM REPORT JUNE 2018

DIRECTORY
DIRECTORY
Board of Directors
Tim Goodacre (Chairman)
Andrew Borland (Managing Director)
Nick Harris
Mark Hutton
Alan Isaac
Weiyong Wang
Nelson Liu (Alternate Director for Weiyong Wang,
appointed 15 June 2018)
Audit and Risk Management Committee
Alan Isaac (Chairman)
Nick Harris
Mark Hutton
Nominations and Remuneration Committee
Mark Hutton (Chairman)
Tim Goodacre
Finance and Treasury Committee
Mark Hutton (Chairman)
Andrew Borland
Health and Safety Committee
Nick Harris (Chairman)
Andrew Borland
Registered Office
52 Cashel Street
Christchurch 8013
New Zealand
Postal Address
PO Box 1590
Christchurch 8140
New Zealand
Telephone
64-3-379-7720
Website
www.scalescorporation.co.nz
26
SCALES CORPORATION LIMITED

DIRECTORY
Share Registry
Computershare Investor Services Limited
Level 2
159 Hurstmere Road
Takapuna
North Shore City
Auckland 0622
Auditor
Deloitte Limited
Level 4
151 Cambridge Terrace
Christchurch 8013
Bankers
ANZ Bank New Zealand Limited
Level 3
ANZ Centre
267 High Street
Christchurch 8011
Rabobank New Zealand Limited
Level 23
157 Lambton Quay
Wellington 6011
Westpac New Zealand Limited
Level 4
The Terrace
83 Cashel Street
Christchurch 8011
Solicitors
Anthony Harper
Level 9
HSBC Tower
62 Worcester Boulevard
Christchurch 8013
Chapman Tripp
23 Albert Street
Auckland 1010
Corporate Adviser
Maher & Associates
17 Albert Street
Auckland 1010
Share Registry
Computershare Investor Services Limited
Level 2
159 Hurstmere Road
Takapuna
North Shore City
Auckland 0622
27
INTERIM REPORT JUNE 2018

SCALES CORPORATION LIMITED
52 CASHEL STREET, CHRISTCHURCH 8013, NEW ZEALAND
WWW.SCALESCORPORATION.CO.NZ