NZK 1H20 Half Year Results Announcement

Market Announcement
February 27, 2020

NEW ZEALAND KING SALMON ANNOUNCES SOLID 1H20 RESULT AND INTERIM DIVIDEND;
NEW DIRECTOR APPOINTED

New Zealand King Salmon Investments Ltd (NZX & ASX:NZK) reports its financial performance for
the six month period ended 31 December 2019 (1H20). Highlights include:

• Record average price achieved of $24.46/kg, up from $22.93/kg in 1H19
• Revenue of $84.2m, down slightly from $87.7m in 1H19, due to lower sales volume
• Sales volume of 3,442 tonnes down from 3,824 tonnes in 1H19 as we managed demand
for long term security of supply
• Pro Forma Operating EBITDA of $16.5m, compared with $17.3m in 1H19
• Statutory NPAT of $20.8m, improved from $15.1m in 1H19
• Successful implementation of new aquaculture operating model and upwelling prior
to summer
• Fully imputed dividend of 2.0 cents per share declared, payable 20 March 2020

Chairman John Ryder said “We are pleased to announce first half results ahead of our expectations.
The successful six-month period has seen record pricing achieved, and we can confirm that FY20
financial performance is on track against previous Guidance.

“We restrained sales volume to 90% of last year to ensure good availability for second half demand,
yet stronger market values saw EBITDA only 5% off last year.”

“It’s a solid start to the year considering lower volume available. North America continues to perform
strongly, and our brand and innovation strategy is driving value growth across all markets.”

New Zealand King Salmon CEO Grant Rosewarne described the company’s results as extremely
pleasing in a challenging environment.

“We’ve focused on improved performance in our aquaculture operations, whilst reinforcing our
premium positioning in key salmon niches globally. We have had our challenges in previous
summers, and this year, we have put everything in place for our sea farm operations to be ready for
the summer.

“As we aren’t forecasting significant volume growth until 2022, we’re aiming to use every part of our
salmon to create premium products. We’ve successfully launched our pet food brand Omega Plus in
China and we’re actively targeting the most promising markets and channels with our diversified
portfolio of salmon products.

“We’re also optimistic that our longer-term growth plans are progressing well, with our pending
application to commence open ocean farming, at a site named Blue Endeavour, 7kms north of Cape
Lambert in the Cook Strait. We see Blue Endeavour as a key part of the company adapting to climate
change.

The result of the application is expected by the end of this year, and, assuming a positive outcome,
the first harvest will take place in Q1 of CY2023.

The open ocean application is aligned with the Government’s recently launched Aquaculture Strategy
with the objective to have the industry achieve $3 billion in sales by 2035.

“The framework is in place for industry to move forward, but this is only the first step and aquaculture
companies will need continued support from all levels of Government plus the ongoing community
backing to achieve this target,” Mr Rosewarne added.

“The company is alert to the challenges, restraints and opportunities arising from the COVID-19
Coronavirus outbreak. Our current assessment is that impact will be low given our diversity of
demand markets and options for global procurement. In the short term we have re-allocated the 2%
of total sales normally destined for China, into other markets at equivalent margins.”

The Board reaffirms previous guidance for the FY20 year for a Pro Forma Operating EBITDA result of
$25.0-$28.5m based on known factors at this time. As in previous years, an update on fish
performance will be provided following the key summer period.

The Board also declared a fully imputed interim dividend of 2.0 cents per share, to be paid on 20
March, 2020.

NEW DIRECTOR

The Board is very pleased to announce the appointment of Associate Professor Catriona Macleod
GIBio, MSc, PhD, GAICD as an independent director effective from 26
th
February 2020.

Dr Macleod is the Head of Ecology and Biodiversity Centre at the University of Tasmania and in
recent years her research focus has been on an improved understanding of the environmental
impacts and interactions of finfish aquaculture, plus providing the system understanding and
recommendations to support sustainable development and management of aquaculture operations.

In welcoming Dr Macleod, Chairman John Ryder noted that her expertise in these areas is very
important as we look to grow in supportive empathy with the ecology around our activities. Dr
Macleod also brings extensive aquaculture experience through her career in salmon farming
operational management in Scotland and Australia, and significant research and teaching in Australia
and internationally.


Contact: 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 producer of the premium King salmon species. We
operate under four key brands: Ora King, Regal, Southern Ocean and Omega Plus, and the New
Zealand King Salmon label. We have been growing and selling salmon to consumers for more than
30 years. Today we employ over 500 people. New Zealand investors make up a significant
percentage of the ownership of NZ King Salmon, and the communities of Marlborough, Nelson and
Tasman are well represented with around 400 of the approximately 2,800 shareholders being from
the Top of the South.

More information can be found at www.kingsalmon.co.nz

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Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)



93 Beatty Street, Tahunanui, Nelson 7011, New Zealand
+64 3 548 5714

contact@kingsalmon.co.nz

www.kingsalmon.co.nz

Results for announcement to the market
Name of issuer New Zealand King Salmon Investments Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD
NZ$ Amount (000s) Percentage change
Revenue from continuing
operations
$84,189 (3.9) %
Total Revenue $84,189 (3.9) %
Net profit/(loss) from
continuing operations
$20,766 37.7 %
Total net profit/(loss) $20,766 37.7) %
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.02000000
Imputed amount per Quoted
Equity Security
$0.00777778
Record Date 06 March 2020
Dividend Payment Date 20 March 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.99 $0.86
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The interim dividend was declared on 26 February 2020
Authority for this announcement
Name of person

authorised
to make this announcement
Andrew Clark
Contact person for this
announcement
Andrew Clark
Contact phone number
+64 21 471 953

Contact email address
Andrew.clark@kingsalmon.co.nz

Date of release through MAP

26 February 2020

Unaudited financial statements accompany this announcement.

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Distribution Notice


93 Beatty Street, Tahunanui, Nelson 7011, New Zealand
+64 3 548 5714

contact@kingsalmon.co.nz

www.kingsalmon.co.nz

Section 1: Issuer information
Name of issuer New Zealand King Salmon Investments Limited
Financial product name/description Ordinary Shares
NZX ticker code NZK
ISIN (If unknown, check on NZX
website)
NZNZKE0003S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 06/03/2020
Ex-Date (one business day before
the Record Date)
05/03/2020
Payment date (and allotment date for
DRP)
20/03/2020
Total monies associated with the
distribution
$2,779,712.70
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.02777778
Total cash distribution $0.02000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00352941
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.00777778
Resident Withholding Tax per
financial product
$0.00138889
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Andrew Clark

Distribution Notice


93 Beatty Street, Tahunanui, Nelson 7011, New Zealand
+64 3 548 5714

contact@kingsalmon.co.nz

www.kingsalmon.co.nz

Contact person for this
announcement
Andrew Clark
Contact phone number +64 21 471 953
Contact email address Andrew.clark@kingsalmon.co.nz
Date of release through MAP

26/02/2020