NZK – 2019 Annual Shareholders’ Meeting materials

Annual Shareholders’ Meeting
5 November 2019
NEW ZEALAND KING SALMON – 2019 ANNUAL SHAREHOLDERS’ MEETING
The attached presentation will be given at New Zealand King Salmon Investments Limited’s Annual Shareholders’
Meeting starting at 2:00 pm today in the The Lounge at Wither Hills Winery 211 New Renwick Road, Burleigh
Blenheim 7272.
• 2019 New Zealand King Salmon Investments Limited Annual Shareholders’ Meeting – Chair and
Managing Director’s Address
• 2019 New Zealand King Salmon Investments Limited Annual Shareholders’ Meeting – Presentation

ENDS

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 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 top of the South. More information can be found at www.kingsalmon.co.nz

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Annual Shareholders’ Meeting
5 November 2019
Address by the Chair: John Ryder
[SLIDE 2: AGENDA]
My name is John Ryder. I’m Chairman of New Zealand King Salmon and it’s my pleasure to welcome you all to our
2019 annual shareholders’ meeting.
Some housekeeping matters before we start. Firstly, I would like to remind you, as a matter of courtesy, to turn
your mobile phones to silent. If there is an emergency and we need to leave the venue please do so through the
marked exits. The assembly point is [outside].
I am pleased to confirm that we have a quorum and therefore declare the 2019 Annual Shareholders’ Meeting of
New Zealand King Salmon Investments Limited open.
The items of business for this meeting and the resolutions to be considered by shareholders are contained in the
Notice of Meeting which was sent to shareholders on the 7
th
of October.
The order of proceedings today is that I will briefly comment on the highlights of the last 12 months followed by
an address by Grant Rosewarne, our CEO and Managing Director. We will then attend to the resolutions. While
voting is taking place there will be an opportunity for you to ask questions. We will conclude with an opportunity
for you to raise any matters of a general nature.
In terms of the formal business, we will cover each resolution in turn and invite questions specific to those items.
It will then be time to vote on the resolutions. I will outline the process for the discussion and voting on the
resolutions at that point in the agenda.
At the close of the meeting we hope you will join us for refreshments.
I would like to introduce my fellow Directors – they are:
• Grant Rosewarne, CEO and Managing Director;
• Mark Hutton, an Independent Non-Executive Director;
• Tomakin Lai, a Non-Executive Director;
• Paul Steere, an Independent Non-Executive Director; and
• Chiong Yong Tiong, a Non-Executive Director,
• Jack Porus, Non-Executive Director, puts his apologies as he was unable to attend today.
I would also like to note that members of New Zealand King Salmon’s management and staff are in attendance as
well as our external auditors, Ernst & Young.

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[SLIDE 3: CHAIRMAN’S REVIEW]
During the FY19 financial year recently completed the company delivered a robust result with continuing strong
demand across all markets leading to improved pricing and revenue growth.
We have achieved our second best financial result, slightly below the previous year’s record result, despite a
challenging year.
Decisive steps have been taken to implement a new aquaculture production model on our sea farms, which we
anticipate will put us in the strongest possible position to deal with the apparent impacts of climate change on our
existing inshore sites whilst we create the future in open ocean farming.
On that note we are very pleased to advise that we have lodged a resource consent application for our first open
ocean site, named “Blue Endeavour”, around seven kilometres off the coast of the Marlborough Sounds.
Marlborough District Council has publicly notified the application, and we invite you to make submissions during
the submission period which is open until 16 December 2019. A link will be provided on our company website.
I would like to acknowledge the efforts of the whole team at New Zealand King Salmon in continuing to deliver
strong results for the company, there have been many challenges but the team has dealt with them capably and
with enthusiasm.
In accordance with the Company’s constitution I have signed the minutes of the 2018 Annual Shareholders’
Meeting, and these are available on request, including here at this meeting.
I’ll now invite Grant Rosewarne to address you. At the conclusion of Grant’s presentation we will move to the
formal business of the meeting. While voting is taking place you will have an opportunity to ask questions. We
please ask that if you have a question you save it for this time.

Address by the Managing Director: Grant Rosewarne
[SLIDE 4: MANAGING DIRECTOR’S REVIEW]
Thank you John. Good afternoon ladies & gentlemen – I am going to take you through
• The highlights for the last financial year, FY19, and also update you on our efforts around
• Sustainability
• Our business update
• Outlook; and
• The future of salmon farming in New Zealand.
[SLIDE 6: FY19 HIGHLIGHTS]
During FY19 New Zealand King Salmon enjoyed strong financial performance despite some challenges. We
achieved record revenue of $172.6 million, up 8% on the prior year and a record price of $22.95 per kilo, up 11%
on FY18.
Sales volume was 7,520 metric tonnes, down 3% on the prior year. We recorded solid pro forma operating
Earnings Before Interest, Tax, Depreciation and Amortisation of $25.2 million, which was down 4% on FY18 but
within the FY19 earnings guidance range.

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Our GAAP Net Profit After Tax of $11.3 million was 33% down on FY18 and this includes calculations for fair value
of livestock. We paid a final 3 cent dividend per share on 20th September 2019. FY20 guidance for operating
EBITDA is the same as the prior year of $25 to $28.5 million.
[SLIDE 7: FACTS AND FIGURES]
Slide 7 shows some of the figures I have mentioned in a pictorial fashion, but the main point to be made here is
our geographic distribution of revenue with New Zealand dropping below 50% and the USA climbing to 33%. We
would have a more evenly spread distribution of revenue had we had more fish to be able to supply Europe and
Asia.
[SLIDE 8: FACTS AND FIGURES (continued)]
Slide 8 contains some of our key facts, the highlights from amongst these are that we had zero notifiable serious
harm injuries for the year; we remain one of the most highly certified salmon companies in the world with four
stars from Best Aquaculture Practice; and we have been able to reduce our freshwater consumption, which
mainly occurs in processing.
[SLIDE 9: VISION, PURPOSE, MISSION AND VALUES]
Slide 9 speaks to our vision, purpose, mission and values. Our vision is to be the Top of the South’s most valuable
organisation and the world’s most inspiring salmon company. Our purpose is all about creating the ultimate
salmon experience and our mission is that all of our stakeholders who come into contact with us are better off as
a result.
Our values are about maximising value for all stakeholders, continuous improvement, integrity, teamwork and
culture.
We have 8 supporting strategies to realise our vision. I won’t go into details on these but of course health and
safety is always number 1, followed by only farming one species and being dedicated to that, and then being
highly differentiated.
[SLIDE 11: EARTH OVERSHOOT DAY]
Now onto sustainability. Slide 11 is a sobering look at how the natural resources of the earth are being used.
Earth Overshoot Day is the day each year on which the sustainable resources of earth are used up. In 2019 it was
the earliest ever, at 29 July for the earth as a whole. That means that from 30 July until 31 December this year,
we are consuming the resources of earth faster than can be sustained. We are building up an overdraft that a
future generation will have to repay. We are using the resources of nearly 1.75 planet earths every year, and that
overshoot is unfortunately increasing.
New Zealand cannot be proud of its record in this area. As a country our earth overshoot day was 6 May – we are
using our share of about 2.8 planet earths.
Salmon farming with its low carbon footprint, efficient feed conversion of the salmon, and high protein yield
relative to land animals, can help slow this deficit.
[SLIDE 12: SUSTAINABLE DEVELOPMENT GOALS]
These are the five United Nations sustainability goals that we have identified as being especially relevant to New
Zealand King Salmon; and
[SLIDE 13: OPERATING SUSTAINABLY]
We have five supporting goals of our own on sustainability, that directly link back to the UN goals.

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[SLIDE 14: SALMON FARMING IS HIGHLY PRODUCTIVE]
Illustrating how salmon farming can help reduce the impact of overconsumption of our planet’s resources, this
slide compares Norway’s salmon and land-based farming. Salmon farming in Norway uses a fraction of the area
used for land farming but produces considerably more food.
[SLIDE 15: SUSTAINABILITY OF SALMON FARMING]
...and in addition, salmon farming has a lower carbon footprint, and a much higher edible protein yield from each
animal, due to the inherently more efficient body structure of fish: salmon has no need for an extensive bone
structure, as unlike a land animal, it is not constantly fighting gravity.
[SLIDE 16: ACCREDITATIONS / ENDORSEMENTS]
As I mentioned earlier, we are one of the more highly accredited salmon farmers in the world, spanning
everything from Monterey Bay Seafood Watch, whose green rating is the most difficult to obtain, right through to
Ocean Wise and four star BAP and we have begun the process of ASC, that is Aquaculture Stewardship Council,
certification.
[SLIDE 18: AQUACULTURE]
We have implemented a new aquaculture model which utilises site single year class biosecurity to help achieve a
superior health outcome for our fish.
Elements of the new model include reduced handling of stock including reduced towing, upwelling of cool water
from the very depths below the farm, passive grading prior to summer to reduce biomass and selectively harvest
larger fish, and removing all nets at the end of a year class, disinfecting the farm and then restocking with smolt.
[SLIDE 19: BRANDS]
As ever, we are completely committed to maximising differentiation and building our brands. You will see more
of this from New Zealand King Salmon in the future.
[SLIDE 20: ŌRA KING]
One of our top marketing initiatives is the annual Ōra King awards and this year the theme was around
sustainability. We had a record number of entries from some of the top chefs in the world and this activity is
extremely well targeted to support our food service premium offering, Ōra King.
[SLIDE 21: OMEGA PLUS]
We are very pleased with the trajectory of our pet food brand Omega Plus. Omega Plus has a near perfect
balance of Omega 6 to Omega 3 and it’s very important to get this balance right to reduce the likelihood of
inflammation and autoimmune diseases. Omega Plus is really coming into its own, especially the treat range in
China and more recently Korea. We have some exciting initiatives for Omega Plus, rolling it out to more channels
and more countries around the world.
[SLIDE 23: OUTLOOK]
And now to our outlook for FY20. Unfortunately, volume will remain at FY19 levels for this current year, at about
8,000 metric tonnes.
Demand remains very supportive, especially in export markets.

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We have completed the first quarter with results in line with expectations, although as always the summer lies
ahead and is the most challenging time for fish survival and performance. We expect that our investments into
our new aquaculture production model will yield improved fish survival and health and, as I mentioned earlier, we
are reaffirming our guidance of $25 to $28.5 million EBITDA for FY20.
We continue to work extremely hard on our Blue Endeavour Open Ocean resource consent application and I note
that this has now been notified on the Marlborough District Council website. Hopefully, we can expect a decision
towards the end of current financial year, although it appears a decision on the relocation of inshore salmon
farms will not be received before the FY21 year now.
[SLIDE 25: FUTURE FARMING]
The Open Ocean represents an amazing opportunity to produce sustainable food for a growing population. The
oceans cover over 70% of the earth’s surface yet they only produce about 17% of the world’s animal protein.
New Zealand’s marine economic zone is 21 times larger than its land mass and because fish farming utilises
volume very effectively as opposed to only surface area, we can generate over $30 million per surface hectare of
revenue.
[SLIDE 26: NZ GOVT AQUACULTURE STRATEGY]
Currently, aquaculture with its three species is valued at about $623 million and I’m very pleased to advise we
now have a government led strategy to take it to $3 billion by 2035, which is a fantastic endorsement of the
sustainability credentials of aquaculture.
[SLIDE 27: MPI SALMON RELOCATION PROCESS]
We have two processes to enable better water space. One is the relocation process where we have asked for
some of our existing low flow sites to be positioned still within sheltered waters but within high flow areas. This
initiative is with the Minister and seems to be on quite a long timeframe.
[SLIDE 28: BLUE ENDEAVOUR]
The other initiative is our Blue Endeavour application which is with the Marlborough District Council and would
appear to be on a much tighter timeline. It also enjoys the support of the Government’s recently released
Aquaculture Strategy which I previously mentioned. By farming in the open ocean we can get an even better
environmental outcome, being further away from competing users it enables us to increase our biosecurity,
achieve higher fish health, better survival rates and of course it enables us to increase our scale sustainably.
This image is quite close to what Blue Endeavour will actually look like when and if it is implemented.
[SLIDE 29: BLUE ENDEAVOUR (continued)]
A few additional details about Blue Endeavour: this is the first open ocean finfish application in New Zealand,
however, there have been and are operating open ocean mussel farms already in place and some of these are
larger in surface area than our application.
The application is with the Marlborough District Council with a public hearing likely to be in the first quarter of
calendar year 2020.
The earliest possible harvest is in the fourth quarter of 2022.
We anticipate that capital costs for this first farm will be lower than subsequent open ocean farms at up to about
$35 million. And this is because this particular open ocean site is at the lower end of open ocean energy levels

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and can be farmed with existing technology rather than some of the emerging technologies out of Norway which
are an order of magnitude more expensive.
The first phase of Blue Endeavour will produce about 4,000 tonnes of gilled and gutted output per 18 month cycle,
and the second phase an equivalent amount following a few years later.
[SLIDE 30: BLUE ENDEAVOUR UNDERWATER VIDEO]
I’d just like to take a moment to show you video footage of the sea floor under the proposed Blue Endeavour site.
This footage was shot in the last few months and in the event that we are farming Blue Endeavour we intend to
continue updating it regularly as we have done with other farms, so that you can see the positive impact on
biodiversity of a high quality salmon farm.

Thank you for your time – I will now hand over to John to cover the ordinary and special resolutions.

Address by the Chair: John Ryder
[SLIDE 31: ORDINARY AND SPECIAL RESOLUTIONS]
Thank you Grant.
We will now move to the business of the meeting and the procedure for this part of the meeting. We have a
number of ordinary resolutions and one special resolution to be considered at this meeting. The resolutions are
required to be passed by a simple majority of votes.
The resolutions that we will be voting on today are as follows:
• Resolution 1: Authorisation for the Directors to fix the auditor’s remuneration for the coming year.
• Resolution 2: Election of Tomakin Lai as a Director.
• Resolution 3: Election of Chiong Yong Tiong as a Director.
• Resolution 4: Re-election of Grant Rosewarne as a Director.
• Resolution 5: Increase of Directors’ fee pool.
• Special Resolution 6: Amendment of NZ King Salmon’s constitution.
Current best practice for Shareholder voting is by way of poll. Accordingly, in my capacity as Chair I require that a
poll be held for each of the resolutions.
Shareholders who are entitled to vote and proxies who have discretion as to how they vote have received a
Voting / Proxy Form when they registered upon arrival at the meeting. If you completed a postal vote, you do not
need to complete another Voting / Proxy form.
If you have not received a Voting / Proxy form, please go to the Computershare desk at the back of the room
where their representatives will be able to assist you. After voting, you should place your Voting / Proxy form in
one of the ballot boxes which will be passed around the room. I’ll invite you to vote after all of the resolutions
have been introduced to the meeting.
I and my co-directors hold undirected proxies:

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• With respect to Resolution 1, authorisation for the Directors to fix the auditor’s remuneration for the
coming year: 122,619 shares.
• With respect to Resolution 2, election of Tomakin Lai as Director: 125,669 shares.
• With respect to Resolution 3, election of Chiong Yong Tiong as Director: 125,669 shares.
• With respect to Resolution 4, re-election of Grant Rosewarne as Director: 125,669 shares.
• With respect to Special Resolution 6, amendment of NZ King Salmon’s constitution: 123,669 shares
Your Board supports these resolutions and we intend to vote all of these shares in favour of these resolutions.
In accordance with the NZX Listing Rules, Directors, and their associated persons, are not able to vote on
Resolution 5, which relates to Directors’ Fees. Accordingly, the directors will not vote on this resolution and will
not exercise any discretion given to them by proxies in relation to this resolution.
However, votes cast by directors will count where that director is voting as a proxy in accordance with express
instructions.
There will be an opportunity to ask questions on, or speak to, each resolution being put to shareholders. I ask
that, in the interests of fairness to all shareholders attending this meeting, anyone wishing to speak to a
resolution be as concise as possible and be considerate to other shareholders who may also wish to ask questions.
[SLIDE 32: RESOLUTION 1]
Resolution 1 relates to the remuneration of auditors. The proposed ordinary resolution is to authorise the
Directors to fix the auditor’s remuneration for the coming year. In accordance with the Companies Act, Ernst &
Young have been automatically reappointed as the company’s auditors. As is usual with audit fees, due to the
complexity and changing nature of the company’s affairs, it is not possible to fix the remuneration at the
beginning of the year.
I now move, as an ordinary resolution, that the Board is authorised to fix the auditor’s remuneration for the
coming year.
I now invite discussion on the resolution.
[Discussion]
There appears to be no [further] discussion.
We will now move to the next resolution.
[SLIDE 33: RESOLUTION 2]
Resolutions 2 and 3 relate to the election of Directors, as required by the company’s constitution and NZX Listing
Rules. Both directors have been appointed by the Board since the last Annual Shareholders’ Meeting and are
therefore required to stand for election at this meeting.
Resolution 2 relates to the election of Tomakin Lai (Lai Po Sing).
The Board recommends Tomakin Lai to you as a Director and unanimously supports his election.
I now invite Tomakin to briefly address the meeting on his proposed election.
[Address from Tomakin Lai]

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Thank you Tomakin.
I now move, as an ordinary resolution, that having been appointed during the year by the board and holding office
only until the Annual Meeting, Tomakin Lai be elected as a director. Is there any discussion on this resolution?
[Discussion]
There appears to be no [further] discussion. We will now move to the next resolution
[SLIDE 34: RESOLUTION 3]
Resolution 3 relates to the election of Chiong Yong Tiong.
The Board recommends Chiong Yong Tiong to you as a Director and unanimously supports his election.
I now invite Yong to briefly address the meeting on his proposed election.
[Address from Chiong Yong Tiong]
Thank you Yong.
I now move, as an ordinary resolution, that having been appointed during the year by the board and holding office
only until the Annual Meeting, Chiong Yong Tiong be elected as a director. Is there any discussion on this
resolution?
[Discussion]
There appears to be no [further] discussion. We will now move to the next resolution
[SLIDE 35: RESOLUTION 4]
Two directors are required to retire at this meeting. The Directors to retire are those who have been longest in
office since their last election, being Grant Rosewarne and Mark Hutton.
Resolution 4 relates to the re-election of Grant Rosewarne as Executive Director.
The Board recommends Grant Rosewarne to you as a Director and unanimously supports his re-election.
I now invite Grant to briefly address the meeting on his proposed re-election.
[Address from Grant Rosewarne]
Thank you Grant.
I now move, as an ordinary resolution, that having retired in accordance with NZX Listing Rule 2.7.1, Grant
Rosewarne be re-elected as a director. Is there any discussion on this resolution?
[Discussion]
There appears to be no [further] discussion.
[SLIDE 36: RESOLUTION 5]
Mark Hutton has also retired by rotation, and has decided for personal reasons not to offer himself for re-
election. I would like to take this opportunity on behalf of the Board, the company and shareholders to thank
Mark for his outstanding service to the company over the last 11 years.

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Mark has been a director of NZ King Salmon since Direct Capital invested in the company in 2008, and during that
time has been instrumental in guiding the company through many challenges, through the IPO process to listing
on NZX and ASX, and in achieving its recent record financial performance.
Mark will be missed and we thank him sincerely for his time with NZ King Salmon as an investor and director.
[SLIDE 37: THOMAS SONG]
During the year we were shocked and saddened by the sudden passing of Thomas Song, another huge influence
on our company. Thomas became involved in the NZ salmon industry in 1995 when he led the Oregon Group’s
investment in Southern Ocean Seafoods and Regal Salmon, merging them to create NZ King Salmon in its current
form. For nearly 25 years he was an enthusiastic and tireless supporter of the industry, always being willing to
provide additional capital and faith in management and team during many challenges over the years, and always
with a very personal approach.
We have chosen to name our latest seafarm barge in memory of Thomas Song. This is a $5.3m investment, the
largest NZ King Salmon has made to date in its farm infrastructure, with the vessel in place on Waitata farm as of
last week.
We take a moment to acknowledge the outstanding contribution Thomas made in helping create the successful
and dynamic NZ salmon industry we have today.
We will now move to the next resolution.
[SLIDE 37: RESOLUTION 5]
Resolution 5 relates to a proposal to increase the maximum total pool of directors’ remuneration available for
your Board of Directors.
This increase reflects benchmarking against a peer group of eight of the most appropriate NZX listed companies at
the time of the review, with market capitalisations equally split between larger and smaller companies. It is the
intention of NZ King Salmon to target actual board fees at the median range for the group. The proposed director
fee pool equates to an average fee per director remaining below the closest comparable companies.
Future fees for Directors and committees have not yet been set, and a search is currently underway for a new
independent director to replace Mark Hutton. We are seeking candidates with aquaculture or open ocean
experience in particular, having identified those as areas requiring additional strength on the Board as the
company looks towards its open ocean future.
We are also extremely mindful of moving Board composition towards a majority of independent directors and
with greater diversity in its makeup. We are aware that shareholders share this concern and to that end advise
that we will continue to seek independent directors wherever possible as part of Board succession planning.
This resolution is intended to provide the Board with a remuneration pool sufficient to remunerate a Board of six
non-executive Directors, including for associated committee work. This is important in ensuring that your
company is able to continue to attract and retain the appropriate directorial skills and experience to govern your
business.
I now move, as an ordinary resolution, that the maximum total pool of Directors’ remuneration payable by New
Zealand King Salmon to Directors (in their capacity as Directors) be increased by $55,000 per annum, from
$465,000 per annum to $520,000 per annum.
As I referenced, in accordance with the NZX Listing Rules, the directors and their associated persons are restricted
from voting on this resolution.

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Is there any discussion on this resolution?
I will move now to the final resolution.
[SLIDE 39: SPECIAL RESOLUTION 6]
This resolution is procedural in nature and relates to amendment of the NZ King Salmon constitution to reflect the
updated NZX Listing Rules, which your Company adopted on 22 March 2019. Under a class waiver granted by NZX
Regulation, NZ King Salmon was permitted to defer updating its constitution until this meeting.
The changes are minor and outlined in the Notice of Meeting for this meeting.
Is there any discussion on this resolution?

We will now move to voting.
[SLIDE 40: VOTING & QUESTIONS]
If you wish to vote on these motions, you should use either the Voting / Proxy Form that was sent to you with the
Notice of Meeting or an alternative voting form given to you by Computershare when you entered the meeting.
When you cast your vote, please tick one box to select “for”, “against” or “abstain”, alongside each resolution in
the section named Step 1: Voting Instructions / Voting Form.
If you hold a proxy on behalf of a shareholder, you will need to cast that shareholder’s votes in order for them to
be counted. The Voting / Proxy Form given to proxy holders, sets out the number of proxy votes held and records
directed votes.
If there are no undirected votes, the proxy holder needs only to sign the voting form. Where there are undirected
votes, proxy holders may vote these as they see fit by ticking the appropriate box.
Finally, in all cases, please ensure the voting form is signed. I remind you that you are voting on each separate
resolution as detailed in the Notice of Meeting. After voting, you should place your Voting / Proxy Form in one of
the ballot boxes which will be passed around the room. If anyone is unsure how to complete the voting form or
hasn’t got a form, please go to the registration desk where someone will be able to help you.
Once all the votes have been cast, they will be counted by the Company’s share registrar, Computershare, and
scrutinised by the Company’s auditor. The results of today’s meeting will be released to the NZX on the
completion of verification of voting.
Please prepare your forms and cast your votes now, while we take questions.
[Can I now ask Computershare to please bring the ballot boxes forward?]
Questions
Before I ask for questions I would like to take this opportunity to thank my fellow Directors and the Senior
Leadership Team for their continued contribution to New Zealand King Salmon’s leadership, governance and in
the formulation of our strategic intent.
At this point we will open the floor to any questions on the financial results, the business update or any other
matters you would like to raise.
[Questions]

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[After no more questions]
Are there any items of general business to be discussed?
There appears to be no further business for discussion.
Ladies and gentlemen, that brings us to the end of formal business for New Zealand King Salmon’s 2019 Annual
Shareholders’ Meeting. Thank you for taking the time to participate today.
I would now like to invite you to join us for afternoon tea.
Thank you.
[ENDS]

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A N N U A L S H A R E H O L D E R S M E E T I N G
N O V E M B E R 2 0 1 9

AGENDA
•Welcome​
•Chairman’s review​
•Managing Director’s review​
•Ordinary business and resolutions

CHAIRMAN’S REVIEW
Strong financial performance which benefited from improved pricing and revenue
growth.
Our second-most profitable year despite challenging growing and climatic conditions.
The implementation of a new production model enabling further progress towards
our aquaculture goals.
The progression of open ocean farming with an application of “Blue Endeavour”
lodged.

MANAGING DIRECTOR’S REVIEW
•FY19 Highlights
•Sustainability
•Business Update
•Outlook
•Future Farming

HIGHLIGHTS

FY19 HIGHLIGHTS
Strong financial performance, despite challenges:
•Record revenue of $172.6m, up 8% on FY18.
•Record price achieved of $22.95/kg, up 11% on FY18.
•Sales volumes of 7,520mt, down 3% on FY18.
•Solid Pro Forma Operating EBITDA of $25.2m*, down 4% on FY18 but within the FY19 earnings
guidance range.
•GAAP NPAT of $11.3m, down 33% on FY18.
* A full reconciliation between GAAP and Pro Forma results is shown on page 31 of our full year results announcement available at www.kingsalmon.co.nz/investors.

G E O G R A P H I C S P R E A D O F R E V E N U E
FACTS AND FIGURES
33%
3%
7%
7%
2%
$173
R E V E N U E O F
M I L L I O N
7,931
M E T R I C T O N N E S H A R V E S T E D
D U R I N G F Y 1 9
2%
P R O-F O R M A O P E R AT I N G E B I T D A
N Z $ m
10.3
12.9
16.0
21.6
26.2
25.2
0
5
10
15
20
25
30
FY14FY15FY16FY17FY18FY19
N Z $ m
98
114
136
160
173
G A A P E B I T D A
5.2
12.4
13.8
38.5
28.5
23.1
0
5
10
15
20
25
30
35
40
FY14FY15FY16FY17FY18FY19
46%

25%
K I N G S H A G
N U M B E R S U P
545
T E A M M E M B E R S
219
F E M A L E
T E A M M E M B E R S
326
M A L E
T E A M M E M B E R S
344
L O C A L S H A R E H O L D E R S
0
S E R I O U S H A R M
( N O T I F I A B L E )
I N J U R I E S
100%
C O M M I T M E N T T O
E N S U R I N G
R E U S A B L E / R E C Y C L A B L E
F O R C O M P O S T A B L E
P A C K A G I N G B Y 2 0 2 5
28
B E A C H C L E A N U P S
6300
L I T R E S D A I L Y R E D U C T I O N I N
W A T E R U S E
46%
T O T A L S A L E S
N E W Z E A L A N D
54%
E X P O R T
4
S T A R B A P C E R T I F I E D
1000
P L A N T E D U P T O
N A T I V E T R E E S

TO BE THE TOP OF THE SOUTH’S MOST VALUABLE ORGANISATION AND THE
WORLD’S MOST INSPIRING SALMON COMPANY
VISION
C R E AT I N G T H E U LT I M AT E S A L M O N E X P E R I E N C E
PURPOSE
W E W A N T A L L N Z K S / S TA K E H O L D E R I N T E R A C T I O N S T O L E A V E S TA K E H O L D E R S
B E T T E R O F F A S A R E S U LT
MISSION
M A X I M I S AT I O N O F V A L U E / C O N T I N U O U S I M P R O V E M E N T / I N T E G R I T Y /
T E A M W O R K & C U LT U R E
VALUES
SUPPORTING STRATEGIES
H E A LT H & S A F E T Y
I N C L U D I N G F O O D
S A F E T Y
F A R M ONES P E C I E S :
K I N G S A L M O N
D O M I N AT E P R E M I U M S A L M O N
N I C H E S
S U S TA I N A B I L I T Y
C O M M U N I T Y
E N G A G E M E N T
P E O P L E
B R A N D S
C O S T C O M P E T I T I V E
VISION, PURPOSE, MISSION AND VALUES

SUSTAINABILITY

Global production 13.2m107.1m118.2m66.0m
Carbon Footprint0.600.881.305.92
Protein retention 28%37%21%14%
Yield68%46%No data
*Production: Global production of farmed salmon and livestock primary products, measured in tonnes. Carbon: CO2e is calculated by multiplying the emissions
of each of the six greenhouse gases (CO2, CH4, N2O, HFCs, PFCs and SF6) by its 100-year global warming potential (GWP). Protein: Protein retention describes
the gain in edible protein as a percentage of the protein intake from food. It is calculated as a percentage (grams protein in edible portion / grams protein in feed).
Yield: Edible yield is calculated by dividing edible meat by total body weight. –Global Salmon Initiative
SUSTAINABILITY OF SALMON FARMING
Salmon farming has a substantially lower environmental impact than other proteins.

SUSTAINABLE DEVELOPMENT
We are focused on five United Nations’ Sustainable Development Goals

OPERATING SUSTAINABLY
We aim to pass on our land and water environments to the next generation and beyond in the same or better condition than
we inherited them.

S A L M O N FA R M I N G I S H I G H LY P RO D U C T I V E
N O R WAY
62 xM O R EP RO D U C T I V E
$25MR E V E N U E P E R S U R FAC E
H EC TA R E
A Q U A C U L T U R E
420
1,300,000
3,095
A R E A ( K M
2
)
P R O D
N
( M T )
P R O D U C T I V I T Y
( M T / K M
2
)
A G R I C U L T U R E
10,000
500,000
50

Global production 13.2m107.1m118.2m66.0m
Carbon Footprint0.600.881.305.92
Protein retention 28%37%21%14%
Yield68%46%No data
*Production: Global production of farmed salmon and livestock primary products, measured in tonnes. Carbon: CO2e is calculated by multiplying the emissions
of each of the six greenhouse gases (CO2, CH4, N2O, HFCs, PFCs and SF6) by its 100-year global warming potential (GWP). Protein: Protein retention describes
the gain in edible protein as a percentage of the protein intake from food. It is calculated as a percentage (grams protein in edible portion / grams protein in feed).
Yield: Edible yield is calculated by dividing edible meat by total body weight. –Global Salmon Initiative
SUSTAINABILITY OF SALMON FARMING
Salmon farming has a substantially lower environmental impact than other proteins.

ACCREDITATIONS / ENDORSEMENTS
First in Australasia to achieve 4 star Best
Aquaculture Practices (BAP) certification

BUSINESS UPDATE

Our new production model –site single year class is the key initiative for the FY20 and FY21 years for existing seafarm sites. It
targets the protection of fish health, improved survival rates and the adoption of the best possible biosecurity practices.
The new production model also includes the following to be implemented:
•Reduced handling of stock –all stock entered in their eventual harvest pen.
•Upwelling systems to be installed on all farms, providing cooler water from depth and improving waterflow.
•Passive grading systems to reduce biomass before summer periods.
•All nets removed post harvest (predator and grower), returned to land, cleaned of all biofouling, disinfected and repaired
before being reinstalled prior to smolt entry.
AQUACULTURE

BRANDS
Our five leading brands
U LT R A-P R E M I U M
F O O D S E R V I C E
P R E M I U M R E TA I LV A L U E R E TA I L
P E T F O O D R E TA I L
Z E R O W A S T E V A L U E
A D D I N G

ŌRA KING
Ōra King demand, our premium foodservice brand, continues
to grow.
•Featured on more than 1,200 restaurant menus.
•Profiled in international media –Bloomberg, Intrafish.
•Over 10,000 followers in Instagram.
Ōra King awards our biggest campaign to date
•We focussed on one of our central pillars, Sustainability.
•Chefs from all over the world shared their sustainability
stories.

OMEGA PLUS
•Highest long-chain Omega 3 content of any pet food products domestically.
•Anti-inflammatory properties and great for shiny coats.
•Domestic distribution is increasing with plans to extend brand offerings.
•Launched internationally with further export opportunities being evaluated.

OUTLOOK

OUTLOOK
Expectations for FY20
•Harvest volumes are likely to be in line with FY19 at around 8,000 MT.
•Demand remains very supportive, especially in export markets.
•Investment in the new aquaculture production model with capital expenditure for FY20 is
expected to be ~$20m.
•FY20 Operating EBITDA of between $25.0m and $28.5m.
•Open Ocean resource consent application within FY20, with a farm relocation decision likely to
be made in FY21.

FUTURE FARMING

NZ GOVT –AQUACULTURE STRATEGY
Vision: New Zealand is globally
recognised as a world leader in
sustainable and innovative aquaculture
management across the value chain.
Goal: $3 billion in annual sales by
2035.

MPI SALMON RELOCATION PROCESS
•Adoption of the 2017 Panel recommendation would be unlikely to have any material impact on
site capacity however it may result in modest fish performance improvements.
•A revised proposal from Iwi and NZKS was provided to MPI in June 2019, including use of the
proposed site at Mid Waitata.
•Any potential production benefit from relocation would be achieved in FY23 or beyond due to
process timing.

Blue Endeavour: First
open ocean salmon
farming region in NZ

OPEN OCEAN –“BLUE ENDEAVOUR”
Open Ocean Farming -NZKS applied for its first open ocean farming consent mid October 2019 with this
comprising two farm sites, in the Marlborough region:
•The region has been named “Blue Endeavour” representing a step towards the long term sustainability of
the industry.
•The consenting process is expected to involve a public hearing in Feb / Mar 2020.
•The earliest possible harvest from the region would be in the 4
th
quarter of the 2022 calendar year.
•Capital costs for the infrastructure associated with Blue Endeavour are estimated at $25 -$35m with some
ability for this spend to be staged. This investment would be expected to generate an eventual production
volume of ~4,000 MT per site per 18 month cycle.
The notified period for submissions ends on Monday the 16
th
of December.

BLUE ENDEAVOUR –UNDERWATER VIDEO

ORDINARY / SPECIAL RESOLUTIONS

RESOLUTION 1
That the Board is authorised to fix the auditor’s remuneration for the coming year.

RESOLUTION 2
Having been appointed during the year by the Board and holding office only
until the Annual Meeting, that Tomakin Lai (Po Sing Lai) be elected as a
Director.

RESOLUTION 3
Having been appointed during the year by the Board and holding office only
until the Annual Meeting, that Chiong Yong Tiong be elected as a Director.

RESOLUTION 4
Having retired in accordance with NZX Listing Rule 2.7.1, that Grant
Rosewarne be elected as a Director.

RETIRING DIRECTOR
The Chairman and Board members would like to thank retiring
Director Mark Hutton for his service.

THOMAS SONG
In memoriam: Thomas Song –15 April 2019

RESOLUTION 5
That the maximum total pool of Director’s remuneration payable by NZKS to Directors
(in their capacity as Directors) be increased by $55,000 per annum from $465,000 per
annum to $520,000 per annum with immediate effect, with such sum to be divided
amongst the Directors as the Board may from time to time determine.

SPECIAL RESOLUTION 6
That, effective from the close of the Annual Meeting, the constitution of NZKS be
amended in the form and manner described in the Explanatory Notes.

VOTING AND QUESTIONS

APPENDIX –GLOSSARY OF TERMS
FY19Financial results for the 2019 financial year covering the period 1 July 2018 to 30 June 2019
CAGRCompounding annual growth rate
EBITDAEarnings before interest, tax, depreciation and amortisation
G&GGilled and gutted. Note that all volumetric information presented is on a gilled and gutted basis unless otherwise stated
GAAPGenerally Accepted Accounting Practice
MTMetric tonnes
NPATNet profit after tax, also reported as net profit for the period in our published financial results
NZKSNew Zealand King Salmon
Pro Forma Operating
EBITDA
Pro Forma Operating EBITDA refers to earnings before interest, tax, depreciation, amortisation after allowing for pro forma adjustments as
described in the Appendix to this document. Pro Forma Operating EBITDA is a non-GAAP profit measure
Upwelling SystemA system that allows dense cooler water to be moved towards the ocean surface, displacing the warmer water and increasing water flow.

DISCLAIMER
The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, neither New Zealand KingSalmon Investments
Limited nor any of its directors, employees, shareholders nor any other person shall have any liability whatsoever to any personfor any loss (including,without limitation, arising from any fault or
negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on currentexpectations,
estimates and assumptions and are subject toa number ofrisks, uncertainties and assumptions. There is no assurance that results contemplated in anyprojections and forward-looking
statements in this presentation will be realised. Actual results may differ materially from those projected in this presentation. No person isunder any obligation to update this presentation at any
time after its release to you or to provide you with further information about New Zealand King Salmon InvestmentsLimited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financialmeasures used in
this presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance expense / (income), and taxation expense to net earnings / (loss) fromcontinuing operations.
•EBIT. We calculate EBIT by adding back (or deducting) finance expense / (income), and taxation expense to net earnings / (loss) from continuing operations.
•Pro Forma Operating EBITDA refers to earnings before interest, tax, depreciation and amortisation after allowing for pro forma adjustments as described in the Appendixto this document.
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position orreturns, but that they
should not be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP financial measures maynot be comparable to similarly titled
amounts reported by other companies.Forward-looking statements are subject to any material adverse events, significant one-off expenses or other unforeseeable circumstances.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in thispresentation constitutes
legal, financial, tax or other advice.

T H A N K Y O U F O R Y O U R S U P P O R T