NZK Fish Performance Update

1 May 2019
New Zealand King Salmon – Post-Summer Fish Performance Update
The Board of New Zealand King Salmon Investments Ltd (NZX and ASX:NZK), in line with previous
practice, provides an update on fish performance post the key summer period.

The 2019 summer season has again been challenging for overall fish performance, due to sustained
warm water temperatures which continued into April. The full year mortality cost for the year ended
30 June 2019 (FY19) will now be materially higher than in FY18.
Forecast fish harvest for FY19 is now expected to be around 7,900MT. As a consequence directors
advise that expected FY19 operating EBITDA is likely to be at the lower end of the previously noted
Guidance of between $25.0 million and $28.5 million.
The challenging summer means that FY20 harvest volumes are likely to be in line with FY19, rather
than around 8,700MT previously advised.
Agri companies globally have identified climate change as a key ESG
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risk. The specific measures
adopted by New Zealand King Salmon to mitigate this risk are:
• Choosing to move to site single year class of fish across all farms as soon as possible (global
best practice is regional ‘all in all out’ single year class), with fallowing between year classes.
This will result in a significant reduction in previously forecast harvest volumes in the next few
years, and an increase in capital expenditure requirements. More details will be provided as
part of our year end results announcement in late August.
• Intensified work with Government and the local community, to obtain approval for the critical
Ministry for Primary Industry proposal covering relocation of low flow sites to higher flow
areas.
• Actioning the current strategy towards longer term open ocean farming.
Grant Rosewarne, Managing Director and CEO, said “We note that the Coalition Government is
committed to addressing and mitigating the effects of climate change and strengthening biosecurity.
New Zealand’s green rated salmon industry
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is an ideal candidate to demonstrate that commitment
given the solutions are relatively simple, such as shifting existing salmon space to cooler deeper
waters and enabling open ocean farming, together with best practice biosecurity protocols. We
believe local councils, such as the Marlborough District Council, would respond positively to such
leadership”.
John Ryder, Chairman of New Zealand King Salmon, said “Although fish performance has not met
our expectations during 2019 the company continues to meaningfully grow value within the available
supply of salmon”.

ENDS

Contact information:
Grant Rosewarne, Managing Director and CEO
Mob: 027 246 0980, email: grant.rosewarne@kingsalmon.co.nz


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Environmental, Social and Governance
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NZ is the only country in the world where the entire salmon industry is rated green (best choice) by the
prestigious Monterey Bay Seafood Watch Program.

About NZKS:
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 around 500 people. New Zealand investors
make up a significant percentage of the ownership of NZ King Salmon and the communities of
Marlborough, Nelson Bays and Tasman are well represented with nearly 400 of the 2,800
shareholders from the Top of the South. More information can be found at www.kingsalmon.co.nz