NZK FY20 Annual Report

STRONGER TOGETHER
1
Annual Report 2020
Stronger
Together

IN THIS REPORT
STRONGER TOGETHER
CHAIR & CEO REPORT 6
AWARDS 9
PERFORMANCE HIGHLIGHTS 10
COVID!19: OUR RESPONSE 12
FUTURE FARMING 14
OUR PEOPLE, CULTURE
AND COMMUNITY
PEOPLE AND CULTURE 18
OUR COMMUNITY 22
HEALTH, SAFETY AND WELLNESS 24
FARMING IN BAL ANCE
ENVIRONMENTAL SUSTAINABILITY 28
ADDRESSING CLIMATE 30
FRESHWATER 32
SEAWATER 34
FISH HEALTH AND WELFARE 36
FEED 37
RESILIENT BRANDS
FOOD SAFETY 40
SUPPLY CHAIN 42
NEW PRODUCT DEVELOPMENT 44
OUR BRANDS 46
MARKET GROWTH AND DEMAND 52
LEADERSHIP
BOARD OF DIRECTORS 56
SENIOR LEADERSHIP TEAM 57
FINANCIAL STATEMENTS
We are passionate about creating the
ultimate salmon experience. As the world’s
largest producer we are the King salmon
experts with more than 30 years of farming,
processing and branding this unique breed.
The success of New Zealand King Salmon
relies on strong partnerships with diverse
people and organisations. These partnerships
become strands that weave a stronger
future for us, the industry, and New Zealand.
We believe we are stronger together.
STRONGER
TOGETHER
3
16
26
38
54
58

We work to ful"l salmon
aquaculture’s potential as a
positive force for the health of
people, nature and our company.
332
214
239
kg
17
GREEN KILOMETRES
A C RO S S O U R 3
ELECTRIC VEHICLES
61,647
546
500+
LOCAL SHAREHOLDERS
MALE TEAM
MEMBERS
FEMALE TEAM
MEMBERS
44
%
56
%
TOTAL SALES
NEW ZEALANDEXPORT
$
18
$
155.3
million
million
NET PROFIT
AFTER TAX
OF WASTE
COLLECTED OVER
36 BEACH
CLEAN#UPS
INTO THE LOCAL
ECONOMY WITH
TEAM MEMBER
VOUCHERS
PRO FORMA
OPERATING
EBITDA
PORTIONS OF KING
SALMON DONATED
TO ESSENTIAL
HEALTH WORKERS
DURING LOCKDOWN
SURFACE HECTARES
OF SALMON FARM
SPACE, 0.003% OF
THE MARLBOROUGH
SOUNDS
REVENUE OF
TONNES HARVESTED
7,336
INCREASE IN KING SHAG
NUMBERS LIVING IN THE
MARLBOROUGH SOUNDS
SINCE 2018
EMPLOYEES
4
kg
AVER AGE
HARVEST
SIZE
25
%
347
$
45k
$
25.1

546
JOBS RETAINED DURING
THE COVID#19 LOCKDOWN
John Ryder
CHAIRMAN
Grant Rosewarne
MANAGING
DIRECTOR & CEO
Prior to March this year, this narrative would
have followed a similar pattern to previous
years with the "nal quarter reports based
around our farming result post-summer. But
this has been no ordinary year with Covid-19
turning the world upside down. For New Zealand
King Salmon, having manoeuvred through the
initial crisis, we are optimistic there is light
at the end of the tunnel due to our diversi"ed
portfolio of products, brands and geographies.
Farming in optimal water space and mitigating the risk
of climate change still remain our greatest challenges to
achieving our vision of being the the world’s most premium
salmon company.
We have made very positive progress this year in developing
open ocean aquaculture with our Blue Endeavour application to
farm 7kms north of Cape Lambert in the Cook Strait. As we draw
closer to a hearing date, extensive work has gone into preparing
the modelling and reports required to reassure the wide range of
stakeholders involved.
Earlier in the year, the outlook for our industry was given a boost
with the Government’s launch of a national Aquaculture Strategy
aiming to achieve $3 billion in revenue by 2035. This recognition
of the huge potential for aquaculture in New Zealand is a
signi"cant step forward.
Despite the challenges of Covid-19 and a drop in harvest
volume, the business managed to achieve a pro forma operating
EBITDA of $25.1 million built on strong pricing and mild summer
temperatures. The implementation of our aquaculture model
has progressed with positive results secured from our upwelling
programme to improve environmental conditions, the adoption
of best biosecurity practices and fallowing between crops.
The world abruptly changed for our business on March 25 when
the Government imposed a strict lockdown under Alert Level 4
with the objective of eliminating Covid-19 in New Zealand. With
borders closed and minimal access to cargo air routes globally,
market access for perishable goods was extremely di#cult to
acquire, and in addition, most restaurant customers around the
world rapidly closed their doors.
As a food supplier to supermarkets, the company was extremely
fortunate to remain in operation under the designation of an
“essential services” business. With astonishing e#ciency our
teams transitioned to the new normal, applying additional PPE
gear on our farms, our hatcheries and in our processing plants,
establishing new shift patterns to allow for distancing rules
and setting up 120 team members to work from home. We also
isolated around 76 team members who were unable to work.
At the same time, our sales and marketing teams were
focused on replacing lost customers as quickly as possible. For
a company that secures nearly three-quarters of its revenue
in the food service channel, rapidly transferring sales into B2C
and retail channels presented a major challenge that the team
tackled with great determination.
The initial impact on sales during lockdown was instantaneous
with a drop of 50% during the lockdown period. With 546
team members and a factory operating at limited capacity,
we were grateful for the Government’s support in providing a
wage subsidy for companies signi"cantly a$ected by Covid-19.
Without this initial support, we could not have protected all 546
jobs through this period.
There are still challenges to come as we rebuild our business to
be even more robust for the future. The experience of Covid-19
has highlighted our strength in diversi"cation of markets,
customers, channels and brands, and we will continue to focus
on these. In addition, we will reassess our dependence on air
freight and highly perishable goods with a review of our freezing
capabilities, increased emphasis on longer shelf life and ambient
product lines and categories. Rebalancing our supply chain will
also contribute to enhanced sustainability outcomes.
OPEN OCEAN FARMING
We have long held the belief that aquaculture has the potential
to contribute signi"cantly to New Zealand’s sustainable food
future and become the country’s most valuable industry and
greenest primary sector. New Zealand’s exclusive economic zone
in the ocean is more than 15 times bigger than our land area
which presents signi"cant potential.
Farming in the open ocean is our key strategic initiative to
achieve sustainable business growth, and our Blue Endeavour
application is the "rst step in developing our open ocean
farming operations. Open ocean farming is recognised globally
as best practice to achieve better environmental, social and
economic outcomes.
It is therefore very heartening to see the publication of an
independent business case for open ocean "n"sh aquaculture
in New Zealand. Commissioned by New Zealand Trade and
Enterprise (NZTE) and Ministry for Primary Industries (MPI) and
published in February, the report states the salmon farming
industry could be earning as much as $2 billion for the country
by 2049 – more than 20 times the current "gure.
The report states that moving o$shore is essential for the
growth of the industry and reiterates that the future for salmon
farming in New Zealand is bright. Farmed salmon has a very low
carbon footprint, low water use and low ‘land use’ from input of
raw materials compared to all other animal farming systems.
CHAIR & CEO REPORT
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
76
CHAIR & CEO REPORTCHAIR & CEO REPORT

Young Achiever
Award
Sam Pearson
Acting Charge Hand
Sam Pearson was
recognised for showing
fantastic potential in becoming an
e$ective and respected seafood
industry leader. A role model for his
colleagues, he has the drive, passion
and determination to establish an
impressive career in aquaculture.
Future
Development
Innovation Award
Simon Thomas, Omega
Divisional Manager
Simon Thomas has
been instrumental in creating a
new environmental benchmark by
maximising the use of remaining
raw materials from King salmon. He
has led his team to use the 35 to
40% of the "sh left after the "llet
is extracted including head, frames,
skin, gills, guts and trimmings to
create nutritious pet food and
treats under the Omega Plus brand.
Future
Development
Innovation Award
Denver McGregor, Quality
and Compliance Manager
This award was given to
Denver McGregor for his research
into listeria monocytogenes,
a bacteria which can a$ect
seafood. Findings from this research
are enabling the seafood industry
to make signi"cant savings in
the management of listeria
monocytogenes and reduce costly
product recalls.
SEAFOOD STARS
AWA R D S 2 0 1 9
WINNER
WINNER
WINNER
John Ryder
CHAIRMAN
Grant Rosewarne
MANAGING DIRECTOR & CEO
AWARDS
Large Business
Award
This award is given to
a business that has
an annual turnover of
more than $3.5 million.
The judging panel said it was
remarkable that a Nelson business
now supplies over 50 percent of the
world’s King salmon.
Best Large
Business
The New Zealand
International Business
Awards are run by
NZTE and celebrate the
success of New Zealand business
on the world stage. The Best Large
Business award recognises success
by net return to the New Zealand
economy for businesses with total
annual revenue over $40 million.
Supreme Business
Award
NZKS took out the
Supreme Business Award
– judges were blown
away by our national
and international success and were
impressed with the degree of value
and support we bring to the Nelson
region, particularly all the local
businesses we engage with.
NELSON TASMAN
CHAMBER OF
COMMERCE
BUSINESS
AWARDS 2019
NEW ZEALAND
INTERNATIONAL
BUSINESS
AWARDS 2019
WINNER
FINALIST
WINNER
Large Business
Award
This award recognises
a business that
demonstrates excellence
in management and
strategy, sales and marketing,
sustainability, investing in people,
customer experience, health and
safety and overall success.
New Zealand
Food Hero 2020
We were nominated as a
New Zealand Food Hero
as part of the 2020 New
Zealand Food Awards, for
salmon donations made to essential
healthcare workers across the Top
of the South during the Covid-19
lockdown.
MARLBOROUGH
CHAMBER OF
COMMERCE
BUSINESS
EXCELLENCE
AWARDS 2019
NEW ZEALAND
FOOD AWARDS
2020
WINNER
NOMINEE
The report also supports the inclusion of open ocean farming
in the Government’s new Aquaculture Strategy and the
recently launched 10 year primary sector plan - ‘Fit for a Better
World Roadmap – Accelerating Our Economic Potential’.
The opportunity for regional employment and sustainable
growth without compromising environmental and climate goals
is reinforced.
These are truly exciting times when our Government recognises
the huge potential of the aquaculture industry in New Zealand.
We now need to convert this aspiration to reality.
Once research reports are complete, a commissioners’ hearing
will be held to consider the Blue Endeavour application, taking
into account the submissions over the course of the public
consultation. Assuming a positive outcome, we intend to
commission an initial farm with the potential to grow 5,000
tonnes of King salmon per cycle, with a second farm of the
same size a year later. The growth in volume will be matched by
an expected 300 extra jobs for the Top of the South economy
with the "rst harvest anticipated in Q4 CY2023, assuming no
signi"cant delay to the application.
SUSTAINABILITY UPDATE
This year, we renewed our 4-star rating with the Global
Aquaculture Alliance’s Best Aquaculture Practices (BAP)
certi"cation programme. We also successfully secured the
Aquaculture Stewardship Council (ASC) certi"cation at our
Clay Point farm as part of our membership of the Global
Salmon Initiative (GSI). The New Zealand King salmon
industry’s Green/'Best Choice' rating from the globally
respected Seafood Watch programme was also renewed
this year for a three-year period.
With a growing interest from customers, consumers,
community and investors in our response to climate change,
and the emergence of a more structured climate related
reporting framework for listed companies, our sustainability
programme becomes more important every year.
Our certi"cation programmes now incorporate a climate
element into the standards, and this year we "nalised a life cycle
analysis research report to better understand our company’s
carbon emissions. As anticipated, due to the nutritional
requirements of our unique King salmon species and our decision
to minimise marine protein in our King salmon diets, our carbon
footprint falls at the higher end of aquaculture species, but
remains a very good choice when compared with proteins
derived from land animals.
Opportunities to reduce our carbon footprint in the short term
align with operational goals to improve survival rates and
feed conversion ratios, but we will also see incremental gains
through the reduction of waste in packaging, consumables
and energy usage.
The team is increasingly aware of the need to reduce waste in
our supply chain, and we have started to reduce plastic usage
in our retail packaging and factory consumables. We have now
also embarked on a cooperative industry-wide programme to
reduce plastics in aquaculture.
FINANCIAL UPDATE
For the 12-month period ending 30 June 2020, our company
delivered a strong performance under the circumstances,
recording a pro"t after tax of $18 million, up 59% on FY19. The
company recorded revenue of $155.3 million, down 10% on
FY19. The Pro Forma EBITDA, a metric used extensively by the
Board as an indication of the underlying pro"tability for the
group, is $25.1 million, within the FY20 earnings range of
$25 million to $28.5 million. We achieved strong pricing of
$24.54/kg, up 7% on FY19.
Sales volumes were a$ected by Covid-19, dropping by 50%
during lockdown. We recorded volumes of 6,331 tonnes,
down 16% on FY19.
Due to uncertainty caused by the impact of Covid-19, higher
levels of inventory and ensuring prudent cash availability, the
Board has decided not to pay a "nal dividend in respect of the
FY20 year. The payment of dividends will be reviewed next year.
SUMMARY
The Board would like to take this opportunity to acknowledge
and thank the entire New Zealand King Salmon team for
the past year, especially for the outstanding work and
commitment during the global Covid-19 crisis. As we gradually
emerge from this devastating global pandemic, we are
applying the learnings from Covid-19 to make sure New
Zealand King Salmon is even more resilient into the future.
We would also like to thank our broader New Zealand
team – our shareholders, customers, our community and our
partners for supporting us throughout the year. Again, your
support was invaluable, especially during the past few months.
We look forward to an exciting year ahead, in anticipation of
a successful outcome with our Blue Endeavour open ocean
application, which will enable us to continue creating the
ultimate salmon experience for more customers, categories
and markets around the world.
Our Government recognises
the huge potential of the
aquaculture industry in
New Zealand. We now need
to convert this aspiration
to reality.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
98
AWARDSCHAIR & CEO REPORT

PERFORMANCE HIGHLIGHTS
Income Statement ($000,000)FY2020FY2019
Sales volume [t]6,3317,520
Revenue 155.3 172.6
EBITDA 36.1 23.1
Pro Forma EBITDA 25.1 25.2
Net Pro"t After Tax (NPAT) 18.0 11.3
Pro Forma Operating NPAT 11.2 12.9
Total assets 274.4 222.1
Cash and cash equivalents 7.1 6.2
Total liabilities90.0 53.3
Net cash/(debt) (31.0) (9.2)
Net cash %ows from operating activities
4.2
10.9
The Board has announced a good "nancial
result, despite challenges posed by Covid-19
and disruptions to supply chains. We achieved
net pro"t after tax of $18.0 million for the
full year, up 59% on FY19 due to an increase
in biomass and average "sh size as we slowed
harvest. Despite revenue of $155.3m being
down 10% on the previous year, our Pro Forma
operating EBITDA of $25.1m was in line with
FY19 and within the FY20 earnings guidance
range of $25.0m – 28.5m.
Directors and management use non-GAAP pro"t measures when discussing "nancial performance in this document. The Directors and management believe
that these measures provide information that is useful to stakeholders along with GAAP measures. International "nancial reporting standards require us to value
our biological assets (salmon) and foreign exchange contracts at the end of each year. Changes in the values of these assets are recognised as a gain or loss
in our accounts. However, because only a small percentage of these "sh are ready for harvest, and because we intend to hold our foreign exchange contracts
to completion (taking any associated gain or loss on those contracts at the point at which they are closed out), our approach is to focus on pro"t or loss prior
to these adjustments. Furthermore, the non-GAAP pro"t measures discussed above are also used internally to evaluate company performance. Non-GAAP
pro"t measures are not prepared in accordance with NZ IFRS and are not uniformly de"ned, therefore the non-GAAP pro"t measures reported in this document
may not be comparable with those that other companies report and should not be viewed in isolation or considered as a substitute for measures reported by
New Zealand King Salmon Investments Limited in accordance with NZ IFRS.
FINANCIAL PERFORMANCE ! KEY INDICATORS
TONNES HARVESTED
7,336
4
kg
AVER AGE
HARVEST
SIZE
$
25.1million
PRO FORMA
OPERATING
EBITDA
BIOLOGICAL PERFORMANCE ! KEY INDICATORS
Our FY20 harvest volume decreased to 7,336 tonnes (t) as we faced the disruption of global foodservice markets due to
Covid-19. There was a signi"cant increase in closing livestock biomass, with harvest volumes set to increase in the next 6
months. Mortality as a percentage of biomass decreased from 23.2% to 15.0% (2018: 20.4%), with this also impacted by
smolt entry timings. Feed cost decreased slightly with seawater feed now exclusively purchased from Australian feed suppliers.
Our key initiative for FY20 and FY21 years targets the protection of "sh health, improved survival rates and the adoption of
the best possible biosecurity practices.
This year, we achieved:
• Upwelling systems installed on all farms to improve %ow and provide cooler water from lower depths. The initiative also
helped mitigate the e$ects of Algal blooms and Jelly"sh inclusion on nets.
• An increased focus on net cleaning and maintaining the best possible environmental conditions on farms.
• Reduced handling of stock, freeing up team member time for husbandry focus – all stock entered into their eventual
harvest farm and no stock graded or pumped.
• A greater focus on feed management – especially during summer – with pleasing improvements seen from tide speci"c
feeding regimes and altered feeding practices during the warmest periods.
The farming of low %ow sites continues to pose a challenge in terms of feed discharge and compliance with consent
conditions as previously detailed in the MPI Salmon Relocation Process. Improvements seen to date are pleasing with further
improvements to "sh health and survival expected over the next 2-3 years as the model is re"ned.
Biological MetricsFY2020FY2019
Harvest Volume [t]7,3367, 931
Feed Conversion Ratio (FCR)1.761.80
Mortality as a % of Biomass15.0%23.2%
Closing Livestock Biomass [t]6,2935,125
Feed Volume [t]18,90919,593
In calculating Pro Forma Operating NPAT the "nancing cost and income tax expense di$er from statutory due to the adjusting of income tax to re%ect tax expense
on Pro Forma Operating EBITDA.
FY2020FY2019
Reconciliation of Non-GAAP to GAAP Financials ($000)ActualActual
Net Pro"t/ (Loss) After Tax 18,004 11,350
Add Back: - -
Depreciation, amortisation and impairment9,3856,234
Net "nancing cost1,7361,092
Income tax expense/(income)6,9494,387
Statutory EBITDA 36,074 23,063
Deduct:
Fair value (gains)/losses (NZ IAS 41 and NZ IAS 2)(9,419)2,103
Lease Adjustments (NZ IFRS 16)(1,584)0
Operating EBITDA25,07125,166
Pro Forma adjustments - -
Pro Forma Operating EBITDA25,07125,166
Deduct:
Depreciation and amortisation(7,948)(6,234)
Net "nancing cost(1,565)(1,092)
Income tax (expense)/income(4,319)(4,976)
Pro Forma Operating NPAT11,24012,864
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
1110
PERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTS

Covid-19: Our Response
What we brought
into Covid-19
+ Good sales
+ Strong brands
+ Diversi"ed markets
+ Solid "nancial base
+ Expertise in food safety
+ Culture of resilience
and adaptability
+ Rapid decline in sales
+ Increased focus on food
safety
+ Emerging emphasis on
e-commerce
+ Challenges in supply chain
and distribution
+ Changes to the way we
operate, particularly in our
processing facilities
+ Strong sales
performance
+ Introduction of safe
practices for essential
workers
+ Ensuring constant
supply of PPE for
our teams
+ Donations to local
community
+ NZ brand stronger in
international market
+ Customers accustomed
to e-commerce
+ Improving social license
+ Brand reputation
+ Greater depth in retail
channel across fresh,
smoked and pet
What Covid-19
presented
How we
responded
Opportunities
moving forward
Diversi"cation and team-work were two key
ingredients for managing through Covid-19.
GILLED AND GUTTED SALES
$
KG
%
April 13
Team members working on site
given $100 supermarket vouchers
Cross-promotional
partnerships between
Ōra King and Regal to
increase B2C sales
Omega Plus television
ad produced during
lockdown
Ōra King salmon donations during April and May
helped feed over 18,000 unemployed hospitality sta'
and frontline workers across Australia and the US.
April 20
King salmon portions
donated to more than 500
essential healthcare workers
in the Top of the South
April 23
Successful MPI
audit at factory
to ensure PPE and
distancing rules
were in place
May 11
Recognition of the team's
contribution during
Covid-19, comprising
restaurant or supermarket
vouchers to spend locally
with customers
May 14
Food service begins to reopen
in New Zealand with distancing
and hygiene regulations in place
May 14
Team members begin
to return to the o#ce
May 26
Air charter of 6500kg of salmon
from Nelson to Auckland to
help meet export connections
May 13
Government
announces increase
in cargo %ights to
international markets
for New Zealand
exporters
JanuaryDecemberFebruaryMarchAprilMayJuneJuly
700,000
600,000
650,000
500,000
550,000
400,000
450,000
300,000
350,000
January
China market
slows down
March 21
120 team members
begin setting up to
work from home
March 24
Regal radio and
digital campaign
launched to promote
health and immunity
bene"ts of salmon
March 25
NZKS continues operating
as an essential service in the
primary industry food sector
Smaller teams at the factory
with physical distancing and
additional PPE requirements
rolled out company wide
National
alert level:
1
2
3
4
L
O
C
K
D
O
W
N
PPE and physical
distancing helped
keep our team
members and
customers safe during
the Covid-19 situation.
350
TEAM MEMBERS
WORKING ACROSS
OPERATIONS
UNABLE TO WORK76
WORKING
FROM HOME120
ALERT LEVEL 4
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
1312
COVID#19: OUR RESPONSECOVID#19: OUR RESPONSE

The Government launched its Aquaculture
Strategy in September 2019 setting the
revenue target of $3 billion for the industry
to reach by 2035. Currently, the industry is
worth $623 million.
Future Farming
BENEFITS OF OPEN OCEAN FARMING
GREEN JOBSBOOST FOR
REGIONAL
ECONOMY
COOLER
WATERS
DISTANCE
FROM
COMMUNITIES
BIOSECURITY
ocean farming we can unlock signi"cant bene"ts for
green jobs, for the environment, for New Zealand King
Salmon and in turn the New Zealand economy.
On 16 December 2019, public submissions closed on
our consent application for Blue Endeavour which will
produce 5,000t per 18-month cycle on two farms.
Prior to the application, we consulted a wide range of
groups, including iwi, "shing companies, DOC, Forest
and Bird, EDS and local community groups. We also
developed a wide range of management plans including
birds, marine mammals and sharks, "sh, navigation
and safety management, monitoring and management
of biosecurity.
Submissions on Blue Endeavour were overwhelmingly
positive, with limited opposition focusing on the need
for more research, which is currently underway.
We’re expecting a result for our application early
next calendar year and remain cautiously optimistic of
a positive outcome. Assuming we are successful in
our application our "rst harvest will be towards the
end of 2023.
Aquaculture could rapidly become New Zealand’s most
valuable industry as well as its greenest primary sector
with open ocean farming highlighted as one of the
sustainable pathways to reaching the Government’s goal.
Our Blue Endeavour application to farm 7kms north of
Cape Lambert in the Cook Strait will create 300 jobs with
an associated revenue of $200 million.
The development of open ocean aquaculture is critical
to the industry’s future and has been supported through
independent research.
New Zealand Trade and Enterprise (NZTE) commissioned
specialist natural resource and sustainability advisors
EnviroStat to create an independent business case for
Open Ocean Fin"sh Aquaculture, published in February.
Their report revealed the immense and ongoing economic
bene"t open ocean aquaculture can deliver, as well as
highlighted the high consumer demand for King salmon
and the strong environmental case for open ocean
"n"sh aquaculture.
New Zealand’s open ocean is 21 times larger than our
landmass. By using a tiny proportion of this area for open
"By farming only a tiny proportion of New Zealand’s
430 million hectares of open ocean space, we can unlock
signi"cant bene"ts for green jobs, for our economy and
for New Zealand’s natural environment."
14
NEW ZEALAND KING SALMON $ ANNUAL REPORT FY20
15
STRONGER TOGETHER
FUTURE FARMINGFUTURE FARMING

OUR PEOPLE,
CULTURE AND
COMMUNITY
The success of our business
is highly dependent on
the communities and the
environment in which we
live and operate, as well
as the people who care
for our salmon.
We attract and develop
talented people across
our diverse roles and
teams.
We work to ful"l salmon
aquaculture’s potential
as a positive force for the
health of people, nature
and our company.
We are a trustworthy
and transparent
neighbour and
community partner.

Our People and Culture team are instrumental in driving our
organisational culture as well as providing our managers with
support, training, systems and processes which allow them to
manage their team members.
Modern human resources practices have changed and respected
research recommends having a People and Culture team that is
integral to the organisation rather than solely a service function.
To bring our team in line with current thinking a new People
and Culture strategy has been developed, informed by both
international best practice and internal requirements.
PEOPLE AND CULTURE
Our managers completing their !rst
Dale Carnegie leadership programme
The "rst successful initiative delivered under our strategy was
to expand our existing safety management system into a much
broader People and Culture solution. The development of our
new i-Recruit tool during the year has simpli"ed our recruitment
process, using technology to save time on administration and
allowing reporting and analysis of application details. This
application has been an excellent example of the team working
to deliver a simple yet e$ective technology-based solution.
ENGAGEMENT
Work to engage our team members has continued with
our 2019 engagement survey demonstrating engagement
levels at New Zealand King Salmon have remained similar
to 2018. Engagement initiatives have continued with our
‘Way We Work’ and ‘Positive Safety Behaviour’ initiatives.
During FY20 we had 165 Way We Work nominations and
19 winners, and 176 Positive Safety Behaviour nominations
with 13 winners. Cross functional visits and opportunities
for team members to visit other sites continued during
the year. We have also continued to engage our
managers with internal conference events, including a
leaders’ conference, a health and safety representatives
conference and a senior leaders’ strategy day.
BUSINESS
PARTNER SHIP
ANALYSE
& MEASURE
SIMPLIFY
UTILISE TECHNOLOGY
COMMUNITY
LEADERSHIP
Our focus on raising leadership capability continued through
FY20 with the Dale Carnegie leadership programme. The
programme provided 6 days of targeted leadership learning,
covering leadership behaviours, tools and techniques. With
24 participants on the "rst course and 23 on the second this
training challenged our managers to operate outside their
usual norms and review how they have managed in the past.
The team also organised a specialist negotiation training
skills programme to help in our plans for future water space
as well as improving broader negotiations capability.
We take care of our people because we believe they
are the key to our success. We recognise the need to
attract and retain great talent, supporting them in
their professional and personal development.
Operational training continued with an investment in aquaculture
boat skippers training, as well as unit standards training. New
Zealand King Salmon was successful in obtaining a training grant
from the Tertiary Education Council for basic skills training for
our factory teams. Roll out has been delayed by Covid-19 but will
begin in the coming months.
The People and Culture strategy
has 5 key fundamental principles:
SUSTAINABILITY ACTIONS
Our commitment to the Ten
Principles of the UN Global Compact
New Zealand King Salmon is a participant in the United
Nations Global Compact, established to drive business
awareness and action in support of achieving the UN's
Sustainable Development Goals by 2030.
The Global Compact encourages participants to adopt
a principles-based approach to doing business more
sustainably. This means operating in ways that, at a
minimum, meet fundamental responsibilities in the areas of
human rights, labour, environment and anti-corruption.
Our aim is to continuously incorporate the Ten Principles
of the UN Global Compact into strategies, policies and
procedures, ful"lling our basic responsibilities to people
and planet, but also setting the stage for more detailed
sustainability work in our own industry.
Our "rst annual Communication of Progress (COP) was
submitted and accepted by the Global Compact in August,
reporting our achievements to date within these principles.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
1918
OUR PEOPLE, CULTURE AND COMMUNITYOUR PEOPLE, CULTURE AND COMMUNITY

SUSTAINABILITY ACTIONS
Available for feedback
We consult with a wide variety of individuals and groups,
one-on-one, in larger brie"ngs or at public meetings,
depending on the level of communication required.
As with many other companies, we have been impacted
by Covid-19 and restrictions forced us to postpone
a public meeting in Picton where we would have
provided attendees with a company update. We aim to
communicate more extensively than is legally required,
which means we actively work with various interest
groups, including central and local government, iwi,
NGOs and community organisations.
Support through sponsorships
From environmental initiatives to youth development
programmes, we’re involved with a variety of
organisations and charities throughout Marlborough,
Nelson/ Tasman, Golden Bay and Canterbury.
We also support a number of programmes in local
schools and nurture the next generation through our
scholarships and internship programme with Nelson
Marlborough Institute of Technology (NMIT) and the
Summer of Tech.
Best Management Practices (BMP)
New Zealand King Salmon, the Marlborough District
Council, the Ministry for Primary Industries and other
key stakeholders and experts have worked together to
develop the Best Management Practice (BMP) guidelines
for salmon farming in the Marlborough Sounds. These
Best Management Practice guidelines, which cover water
quality and benthic (seabed) impact, will help protect
the environment while including the local community
and industry, and are standards we can proudly promote
to the world.
We work within the environmental constraints at each
farm site by managing production levels to ensure
compliance with agreed consented conditions. Some of
our consent conditions are being reviewed in addition to
our BMP benthic guidelines.
Beach Clean-ups
As part of our social responsibility commitment, 86 of
our team members took part in 36 beach clean-ups
and collected over 239kg of waste throughout the year.
To mark World Oceans Month our team were out in the
Tory Channel cleaning up 10 small beaches close to our
salmon farm at Ngamahau in the Marlborough Sounds.
GROWING LOCAL TALENT
Nelson Tasman Innovation Neighbourhood
This year New Zealand King Salmon continues to be a supporter
of the Nelson Tasman Innovation Neighbourhood (NTIN), a
diverse group of local organisations who have come together
to tackle common business challenges and identify joint
opportunities across industries.
Through sharing knowledge, connections and fresh ideas, the
group’s focus is on improving outcomes for their individual
organisations while also contributing to the greater good of the
Nelson Tasman community and region.
Summer Interns
One of the main NTIN activities that King Salmon supported was
the Summer of Tech Intern Program, providing internships to 4
young professionals – Hannah Ellis, Sophie Cleal, Emily Anderson
and Zoe Ward, all of whom went on to do some amazing work in
our organisation as well as having the opportunity to visit other
local businesses.
NMIT scholarships
We also partner with Nelson Marlborough Institute of Technology
(NMIT) to provide scholarships and work experience for local
students across our business.
Corban Christie
3rd year Bachelor of Commerce
“I was absolutely thrilled when I learned I had received the
scholarship as it was not only recognition of my prior results,
but also the support and belief from New Zealand King Salmon
that I can thrive in my remaining studies. The idea of becoming
a graduate accountant and beginning a full-time career can be
daunting at times but this scholarship has helped to reassure
me I am on the right path. I would like to sincerely thank
New Zealand King Salmon for the scholarship, I am very
grateful for the honour.”
Yvonne Davis
3rd Year Bachelor of Aquaculture
“I feel extremely grateful to be awarded with this year’s 3rd year
aquaculture scholarship. For me, it means one less thing to worry
about "nancially. It has come as such a relief and has brightened
my view on this year after such a trying time. It has rejuvenated
my determination to succeed and I look forward to working
alongside New Zealand King Salmon and how it will bene"t my
future prospects in the aquaculture industry.”
Jacob Mills
2nd year student Bachelor of Aquaculture
“A scholarship from a company such as New Zealand King
Salmon shows that this company cares about the younger
generation of farmers and technicians trying to break into the
aquaculture industry. This form of giving to the community
shows their support to training students and I look forward to
the rest of this journey.”
Left to right: Corban Christie, Yvonne Davis, Jacob Mills
2120
OUR PEOPLE, CULTURE AND COMMUNITYOUR PEOPLE, CULTURE AND COMMUNITY

WAIKAWA
PICTON
BLENHEIM
NELSON
HAVELOCK
LINKWATER
MISTLETOE BAY
WHANGAMOA
HILLS
NMIT
Waikawa Boating Club
We provide prizes for local
competitions in their ‘NZKS
Winter Series’ and other
events they run throughout
the year.
Queen Charlotte College
We donate tanks and salmon
eggs to the Aquaculture
Academy at QCC.
Marlborough Girls College
We sponsor the senior netball team,
provide laptops for students, provide
an online learning programme, and
this year started to support their
new Pasi"ka Group.
Platinum Sponsor of the
Havelock Mussel and
Seafood Festival
Kaipupu Point Wildlife Sanctuary
We support Picton’s local bird and
wildlife sanctuary so they can
succeed in their environmental goal
of restoring a 40-hectare ‘mainland’
island in the Picton Harbour.
Mistletoe Foundation
We are premier sponsors
of the foundation which
enables school camps and
activities at Mistletoe Bay.
Koru Wildlife Centre
NZKS is a foundation sponsor
of this project which specialises
in breeding and housing Yellow
Crowned Kakariki, Giant Weta and
Marlborough Green Geckos.
Key event sponsor of
Feast Marlborough
Queen Charlotte Yacht Club Rebuild
We were proud to sponsor the rebuild of
this local club. The main function room
will be called the King Salmon Ward
Room, opening in November 2020.
Marlborough Boys College
The First XV rugby team
has been named the
NZKS First XV for 9 years.
Culinary Partners at
the Marlborough Wine
and Food festival
Smart and Connected
Aquaculture
We are members of this
community group which
runs initiatives such as
Aquaculture Week and
holds annual forums
focusing on aquaculture
projects in the region.
Elite Sponsors of the
Picton Maritime Festival
King Shag
Conservation
Project
Sounds Salmon Songbirds Cruises
We team up with Marlborough
Tour Company and Kaipupu
Wildlife Sanctuary to provide
these cruises.
Big Brothers Big Sisters
We are a cornerstone sponsor
of Big Brothers Big Sisters of
Nelson-Tasman.
Graeme Dingle Foundation
Marlborough
We are Gold sponsors of
this outstanding foundation
supporting children across
primary and secondary
schools in Marlborough.
We are also involved with
the Career Navigator
programme.
Fifeshire Foundation
NZKS sponsors the Fifeshire
Foundation which gives
assistance to local people in
domestic hardship or crisis.
NMIT
We sponsor scholarships in
aquaculture, business and
hospitality. We also donate
salmon for the culinary
classes.
We raised $8,750
for the Graeme Dingle
Foundation when two team
members took part in the
‘Drop for Youth’ campaign
in February 2020.
Nelson Marlborough
Rescue Helicopter
We are Silver sponsors of
this essential service in
our region.
$16,000$30,000$64,500$91,640
Donations
Local Education and Youth
Local Environment & Wildlife Programs
Community Charitable Foundations
Total donations
and sponsorships
$202,140
Our Community

OUR FOUR KEY HSW PRINCIPLES:
ENGAGEMENT
We will involve all our team
members in our plans to
improve our health, safety
and wellness performance.
PERFORMANCE
We will actively look to
recognise positive health,
safety and wellness
behaviours and will challenge
any team member who fails
to set the highest personal
standards of health and
safety performance, while
continuing to improve
equipment and infrastructure.
ACCOUNTABILITY
All our team members will
have a clear understanding
of their health, safety and
wellness accountabilities
through clarity of
expectations and
ongoing training.
• 12 new critical risks
identi"ed through
consultation with teams.
• Bow tie analysis completed
by team members across all
levels and departments for
6 of these critical risks.
• Introduction of processing
representative meetings for
both day and night shifts.
• Annual Safety
Representatives
conference held.
• 3 cross-functional
visits completed.
• Representatives trained
in mental health to aid in
response to wellness issues.
• Health and safety dashboard
created and reported on.
• Fillet machine introduced,
reducing manual handling in
one of our highest risk tasks.
• Introduction of severity rating
as a performance indicator.
• New barge and infrastructure
at Ruakaka farm.
• Installation of "re systems
at Bullen Street.
• Establishment of hazardous
substance location at
Bullen Street.
SYSTEMS & PROCESSES
We will have systems and
processes that manage risk in
the workplace. We commit to
design and engineer high-risk
activities out of our business
wherever possible.
0102
0304
OUR ACHIEVEMENTS
THIS YEAR
July 2019 – June 2020
OUR ACHIEVEMENTS
THIS YEAR
July 2019 – June 2020
OUR ACHIEVEMENTS
THIS YEAR
July 2019 – June 2020
OUR ACHIEVEMENTS
THIS YEAR
July 2019 – June 2020
• Introduction of a health,
safety and risk committee.
• Maritime NZ Audit completed
and highest level achieved.
• BAP and ASC audits
successfully completed.
• Worksafe reviews of tra#c
management at Bullen
Street and Dublin Street
o#ces completed without
further actions.
• MPI audits of Covid-19
Alert Level 2 and 3
successfully completed.
• Review completed of
hazardous substances at
Bullen Street factory.
• Training system rolling
out on isafe.
• New health and safety
induction videos created.
• Introduction of early
intervention programs.
• Introduction of manual
task assessments for RSI
risk review.
• Review of our contracts and
tender health and safety
requirements.
HEALTH, SAFETY AND WELLNESS
Health, Safety and Wellness (HSW) is an essential part
of everything we do at New Zealand King Salmon.
TRIFR (1,000,000)
LTIFR
0
100
200
300
400
Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
0
10
20
30
STAYING SAFE AT WORK
Ultimately, we are moving away from measuring safety
success as the absence of incidents and moving towards
a strong and systematic focus on the presence of
controls, particularly around our critical risks.
However, our main health safety and wellness metric
remains the lost time injury frequency rate (LTIFR). In
August, we introduced the use of early intervention
programmes with our physio. Identifying soreness and
injury early has seen us reduce LTIFR from 28.1 to 13.7.LTIFRTRIFR
NEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
24
OUR PEOPLE, CULTURE AND COMMUNITYOUR PEOPLE, CULTURE AND COMMUNITY
Right tool for the job
New Zealanders are known for the
number 8 wire mantra and the ability to
improvise to get the job done in a pinch.
We welcome this creativity to health and
safety problem solving, but we will always
ensure we are using the tool best suited
to our critical tasks.
Competent and "t for work
Training isn’t always enough; we also
want to ensure our people are assessed
as competent, ready for work, "t and
healthy physically and mentally.
Good communication
Communication is a two-way street and
we will ensure all team members have
the opportunity to raise concerns and
actively participate in their own health,
safety and wellness.
Our Health Safety and Wellness policy has been
repurposed into a simpli"ed infographic which captures
our messages in an easy to understand format.
"nd ways we can improve our systems
through auditing and building team
culture that doesn’t accept second rate
health and safety.
No single points of failure
Safety is not the absence of accidents,
it’s the presence of controls. When
dealing with critical risk we aim for
multiple layers of defence and engineer
out risk where possible. We never rely on
soft controls.
Ask what, not who
We have a systems focused approach
to health and safety. When failure does
occur, we always ask what failed before
we point the "nger at who failed. This
way we build a culture around health
and safety and "nd more opportunities
to improve.
COMMON RISKS
Health and
Wellbeing
Contractors
and Projects
AQUACULTURE
PROCESSING
+ LOGISTICS
Infrastructure,
con"ned spaces,
and Electricity
Fire and
Emergencies
Environment
Lifting/
heights
Working
isolated/alone
Water operations
(diving/vessels/
wildlife)
Repetitive Strain
Injury
Hazardous
Substances
Machinery and
Equipment
Mobile plant/
vehicles
Stop, think, act
We will provide training and tools to
help our team plan for risk and actively
manage it. Above all, team members will
know that if the task isn’t safe, they have
the right and responsibility to stop and
make it safe.
Reporting / investigation
iSafe is our health and safety
management system. We actively
encourage the team to engage with the
system for all accidents, incidents and
near misses, while systematically looking
for ways to improve and simplify our
reporting and investigation.
Audits / proactivity
If safety is reactive, we’re waiting
for incidents to occur before we can
implement change. We proactively
25
STRONGER TOGETHER

FARMING IN
BALANCE
Our vision is to pursue
international best practice
salmon farming in order to
deliver a sustainable food
solution for the future.
We are committed
to using resources
responsibly and
reducing our impacts
wherever possible.
We work to ful"l salmon
aquaculture’s potential
as a positive force for the
health of people, nature
and our company.
We are committed
to caring for water
in our region.

FARMING IN BALANCEFARMING IN BALANCE
CLIMATE CHANGE
Climate change is one of the signi"cant challenges
for our world, and every organisation or individual
has some level of carbon footprint to acknowledge.
Farmed "sh is considered a climate friendly protein
source compared to other animal proteins. Salmon
is an important solution to providing the world
with vitally important proteins while having a lower
impact on the environment.
Source: SINTEF (2020) Greenhouse gas emissions of Norwegian seafood
products in 2017, Mekonnen, M.M. and Hoekstra, A.Y. (2010) T
Kg CO(/Kg edible meat
Comparison of carbon footprint for protein
7.9kg6.2kg12.2kg39.0kg
“Farmed salmon is a highly nutritious
and healthy source of protein, and a
major contributing factor to this is the
specialised diet of the "sh, which is rich
in nutrients and Omega-3s. Ensuring
the future sustainability of these feed
ingredients is very important to us as
responsible farmers.”
Global Salmon Initiative
RECOGNISING SUSTAINABILITY
To independently verify our sustainable practices in aquaculture
and our supply chain, we are regularly audited or assessed by
expert third-party organisations.
Best Aquaculture Practices (BAP)
We hold a four-star rating with the Global Aquaculture Alliance’s
(GAA) Best Aquaculture Practices (BAP) programme. The
four-star rating is the highest designation in the programme,
indicating that a product originates from a BAP-certi"ed
processing plant, farm, hatchery, and feed mill. New Zealand
King Salmon was the "rst King salmon company to earn the
distinction worldwide.
Aquaculture Stewardship Council (ASC)
The Aquaculture Stewardship Council (ASC) is an independent
non-pro"t organisation and labelling organisation that
establishes protocol on farmed seafood while ensuring
sustainable aquaculture.
As a member of the Global Salmon Initiative (GSI), we
committed to the collective goal of gaining ASC certi"cation
which we achieved on our Clay Point farm in January 2020. This
goal aims to maintain and grow the industry’s license to operate,
through improving the reputation of both farmed salmon and
salmon farming.
Monterey Bay Aquarium Seafood Watch
The New Zealand salmon industry achieved a second successive
Green/'Best Choice' rating from the globally respected Seafood
Watch programme. The MBA Seafood Watch Programme helps
consumers and businesses choose seafood that supports a
healthy ocean.
A+
We are members of A+ Aquaculture, a world class sustainable
management framework which enables the New Zealand
aquaculture industry to better engage with communities
and continuously improve environmental practices while
strengthening global demand for seafood.
Delivering high quality
products requires quality
farming practices with a
focus on the responsible
management of resources
for the long term.
ENVIRONMENTAL
SUSTAINABILITY
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
2928

As a starting point in understanding our
own context, we commissioned a Life Cycle
Analysis report to measure our own carbon
footprint which we will use to guide our
future carbon minimisation steps. The
report also contributed to the GHG emission
measurement requirements of the Aquaculture
Stewardship Council (ASC) Salmon Standard.
Author of our LCA report, Dr Robert Parker, a seafood life
cycle assessment specialist: “Compared to other animal
protein sources, the GHG performance of New Zealand
King Salmon’s products falls within the upper range of
"shery and aquaculture-derived products and is higher than
most assessed poultry systems, but still lower than many
livestock alternatives.”
Three broodyears, 2013-2015, were assessed across all farm
sites and results were presented in two sections: 'to farmgate',
which covers our operations from hatcheries to the sea farm
gate and 'post farm gate' which relates to the processes
involved after salmon leave the farm including processing,
packaging and distribution.
Overall, New Zealand King Salmon’s
emissions per kilogram harvested are:
[based on economic basis for allocation according to European Union Product
Environmental Footprint guidelines. LCA is representative of outcomes at December 2017.]
The report discusses the three main sources of carbon emissions.
Parker summarises “Marine net-pen production tends to
be less impactful than land-based production due to lower
energy requirements to maintain temperature, oxygen, and
other environmental conditions (e.g. Liu et al., 2016; Ayer and
Tyedmers, 2007). The most consistently e$ective improvements
that NZKS could make to its operations would be achieved
through reduction in feed conversion ratios, reductions in
animal by-product inclusions in feeds and limitation of air
freight where possible.”
Summarised on page 31 is an analysis of the major emission
sources from the LCA and potential opportunities for reduction.
E$orts in reducing FCR and improving survival will contribute
most in reducing our carbon footprint, aligned with current
operational priorities. Reducing our reliance on air freight will
depend on the proportion of perishable fresh whole salmon sold.
Broader Climate Risk Assessment
NZKS has commissioned a climate disclosure gap
assessment under the likely future reporting framework
Taskforce on Climate Related Financial Disclosures (TCFD).
The analysis will serve as a useful foundation to decide
on a programme of work formalising climate-related
governance and management planning and strategy,
alongside metrics to measure progress.
Timeframe:
Major emission sourcesConstraints to reductionOpportunities for reduction
Feed Conversion Ratio
Unique nutritional needs of King salmon species
Optimal water space
Feed composition
Increased survival through existing
operational measures
Minimisation of "sh oil and "sh meal in
diet composition
Single Year Class farming
Open ocean farming (Blue Endeavour)
Feed (composition)
Degree of animal (usually poultry)
input inclusion in feeds heavily
in%uences overall impacts
(e.g. Parker, 2018; Pelletier
et al., 2009)
Unique nutritional needs of King salmon species
Only current alternative to land animal proteins input is
increased usage of marine protein, which con%icts with
best practice guidelines for feed e#ciency
Speed of feed commercialisation for King salmon species
Size of New Zealand salmon industry
Continued improvements in feed outs
and digestibility solutions
Change of origin in feed
Feed innovations (algaes,
alternative proteins)
Local feed mill
Airfreight
Proportion of fresh whole salmon sold - limited
shelf life requires airfreight
Freezing equipment
Perception that 'fresh is best'
Proportion of geographically distant markets
Continued optimisation of product
portfolio and transport choices
Diversi"cation into shelf-stable and
longer shelf life products eg. petfood,
smoked salmon
New freezing technology to
improve quality
Low-carbon air transport options
To farm gate
4.85kg
6.95kg
Total 11.8kg
Past farm gate
ADDRESSING CLIMATE
Reliance on input sources using by-products from land
animals (e.g. poultry) carries a higher carbon cost. But
the alternative is increased use of "sh as inputs. Marine
protein is a great source of Omega 3 and sourced from
well managed "sheries, however we aim to substitute most
of the "sh input with land-animal by-products to minimise
our use of wild "sh, and maximise the use of by-products
from human food production.
Fish Inputs
Land Animal
Protein
Feed is one of our largest sources of
carbon. We aim to balance nutrition
with sustainability. The choice of
protein content is most in(uential:
Long Term
20202019
OngoingShort Term
Feed conversion
ratio (FCR)
2
%
Reduction in 2020,
compared to 2019
Average use of "sh meal and
"sh oil in diets / calendar year:
Medium Term
30
NEW ZEALAND KING SALMON $ ANNUAL REPORT FY20
31
STRONGER TOGETHER
FARMING IN BALANCEFARMING IN BALANCE
10.4% "sh meal
6.0% "sh oil
18.1% "sh meal
8.1% "sh oil

New Build
New Build
Freshwater
Our three freshwater facilities
located throughout the South
Island collectively breed, hatch
and grow smolt for our sea
farms. This year we are putting the
spotlight on our Tentburn hatchery
in South Canterbury, where work has
begun on a 3-phase project to revamp
our facilities, starting with a new First
Feeding complex.
Close to the mouth of the Rakaia River in Canterbury, our
Tentburn hatchery receives ova from our Takaka facility. Work
is underway on building a new First Feeding complex at Tentburn
where we will incubate and hatch eggs. Hatched alevin will then
be moved into large tanks where they will learn to surface feed in a
controlled environment with state-of-the-art oxygenation, monitoring
and alerting systems. Once the "sh have reached around 10g in size
they will be put into the existing raceways. This new facility will help us
achieve our aim to produce more resilient "sh moving into the next phase
of growth. Building will be completed by November 2020, and we began
incubating eggs there from late August.
The First Feeding complex is the "rst stage in a wider plan to improve our
freshwater facilities. Ultimately a second building will be constructed to grow parr
to around 50g and a third building will take the "sh to a point where they are able
to be moved to the sea farms.
At Tentburn plans are also underway to create a new grading and loading building. This
will transport "sh from raceways to tankers and provide a permanent grading platform,
with work scheduled to begin in November 2020.
Team
Our world-class team of quali"ed
aquaculture specialists have the skills
and knowledge to grow and develop
our unique breed. We are continuously
investing in training and new
technology to cover di$erent aspects
of the engineering and biology behind
growing smolt.
Immunisation
We immunise approximately 2.7
million "sh each year before they
are transferred to sea farms in order
to improve resilience in potential
warmer water temperatures and
help prevent disease.
Handling
We minimise handling wherever
possible to reduce stress and improve
the overall wellbeing of our "sh. Our
vaccination processes have been
re"ned to reduce intervention and
we use a single pipeline to reduce
crowding before grading occurs.
Brood stock
Our breeding programme spans
8 generations of salmon with
approximately 150 families and more
than 200,000 "sh. Each year, male
and female salmon are assessed for
speci"c performance traits which
enable us to determine the best
specimens of our breed. With more
than 25 years of husbandry practice
we are able to ensure our brood stock
are strong and healthy.
Water quality
We are privileged to have access to
high-quality fresh water across all
three of our hatchery facilities. At
our Takaka hatchery we have some
of the clearest water in the world
sourced from Te Waikoropupū Springs.
At Tentburn water is continuously
pumped from two spring-fed streams
and at Waiau the supply originates in
springs which are fed from the Waiau
river catchment. There are processes
in place to ensure the water quality is
as good when it exits our facilities.
Nutrition
Feeding commences one month
after hatching. Initially, salmon are
fed by hand and as they grow this
becomes automated. In preparation
for life at sea, they are fed a specially
formulated diet to help them adapt
to the marine environment.
Health
Maintaining optimal "sh health is a
key component in producing resilient
and healthy "sh. Weekly "sh health
checks are carried out and external
labs are used to help determine the
presence of pathogens.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
3332
FARMING IN BALANCE

New Aquaculture Model
FY20 saw the full implementation of the single year class model
across the farming sites, with Kopaua and Waitata the "rst
farms to undergo complete fallowing, including the removal
of all nets from site for repair and disinfection before being
returned. These sites were fallowed for around two months
before being restocked with smolt, due to be harvested from
December 2020.
Single year class is the best practice model in international
aquaculture production planning to protect "sh health, improve
survival rates and deliver the best possible biosecurity. A year
class is the name of a group of "sh that are the same or a
very similar age, hatched within a few months of each other.
Adopting this model means we only have a single year class in
a farm at any one time, and each year class takes around 18
months to grow from smolt to harvest weight.
SEAWATER
Our nine Marlborough
Sounds sea farms are
situated in the Tory
Channel, Queen Charlotte
Sound and Pelorus Sound.
Cooler water
Often the deeper water is
cooler which can reduce the
in-pen temperature for the
"sh. At our Otanerau farm
we regularly saw an in-pen
decrease in excess of 1 degree
celsius compared to the
control sites.
Stronger current
Upwelling creates current for
"sh to ‘sit’ in. This allows the
water to pass over the gills
without the "sh having to
swim vigorously, allowing a
more e#cient uptake
of oxygen.
Upwelling
Another key system introduced this year was the implementation
of upwelling. This uses air to bring water from depth up to the
surface and provides two key bene"ts over the summer period:
Infrastructure improvements
We have continued to invest in infrastructure
across our sea farms over the past year. A new
barge called the Thomas Song was commissioned
in early FY20 for our Waitata sea farm. This barge
has capacity for storing 320 tonnes of feed,
spread out over eight di$erent 40 tonne silos.
With four bedrooms it is the largest feed barge
in our %eet and is named after the late Thomas
Song who died in 2019. Thomas was a long-
standing NZKS board member and was hugely
supportive of the salmon farming industry in
New Zealand.
The pens and feed barge at Ruakaka farm
have also received an upgrade this year. Older
style pens were decommissioned and replaced
with three new 40m x 40m pens from Scale
AQ. To accommodate the new pens and
feeding requirements the barge underwent a
complete refurbishment. Completed in Nelson,
the barge was completely re"tted with new
accommodation, an o#ce, four 20 tonne feed
silos, a workshop and generator room. Progress
was delayed slightly due to the Covid-19
lockdown but the barge was in place and feeding
"sh from mid-June 2020.
Waterspace
Ngamahau farm has been consented for extra
feed discharge and there is an application with
Marlborough District Council (MDC) to increase
feed discharge at Waitata. Farm relocation is
still under consideration by MPI in a joint iwi
company proposal.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
3534
FARMING IN BALANCEFARMING IN BALANCE

FARMING IN BALANCE
ROUTINE HEALTH MONITORING
The Fish Health and Welfare Team perform regular farm visits
which incorporate:
• Regular biomass assessments using a non-intrusive 3D
camera – "sh performance is a key "sh health indicator
• Monthly "sh health checks and biosecurity observations
on all sites
• Monitoring of "sh health through weekly visual inspection
using high de"nition video monitoring
• Management of disease on every farm each month by
sampling "sh and having independently certi"ed third-
party laboratories con"rm diagnosis
RAPID RESPONSE
We employ a full-time team of experienced "sh health
advisors that are on farms several times a week collecting
information and distributing their "ndings via monthly "sh
health reports for each farm. The team has access to a local
New Zealand registered veterinarian who can be consulted in
the event of an escalated "sh health matter.
EARLY INVESTIGATION
The team can be called to any farm as soon as any "sh
populations show any signs of being compromised. We use
the following resources to help diagnose any problems:
• Waterproof high de"nition cameras
• Water quality monitoring
• Algae monitoring
• Pathogen DNA analysis
• Bacteriology swabbing
• Histology sampling
PHILOSOPHY OF
CONTINUOUS IMPROVEMENT
Our aquaculture team has formal and informal training to
continuously improve our knowledge of "sh health, welfare
and biosecurity. We are investigating new technology to
monitor and improve our "sh health and welfare – the
introduction of the electro stunner is working well in
freshwater to humanely cull smolt for pet food. We have also
recently assisted the Cawthron Institute in developing King
salmon health indicators which help with early warning of
potential "sh health issues, diagnostics and determining the
response to challenges and husbandry changes.
FISH HEALTH AND WELFARE
Biosecurity Management Plan
This has been developed to coordinate a well-informed
timely response to the detection of risks faced across
operations. It is designed to manage pathogen pathways
between and within control zones, as well as develop
a proactive ‘hygiene culture’ of on-farm and vector-
based management measures, to reduce the spread of
pests and diseases.
Fish Health Management Plan
This is in place to reduce, prevent and control the impact
on production from any disease that a$ects or may
a$ect our King salmon population.
To give our "sh the best chance to reach
their potential, New Zealand King Salmon
follow two key management plans.
Our feed is specially formulated to provide enough energy for
our salmon to thrive whilst also supplying all the essential
nutrients for healthy growth.
A more e)cient supply chain
In April 2019 we made a change to our
feed suppliers and now source the feed
used in our seawater production cycle
from three leading companies based in
Tasmania. This means that feed has less
distance to travel, reaches us sooner
and creates a more e#cient supply
chain. Over the next two years we will
be comparing "sh diets, reviewing feed
company support and the supply chain
as we look ahead to open ocean farming.
Less marine input
We are committed to growing healthy
and nutritious King salmon in a
sustainable way, with minimal waste
and seabed impact. We are continuously
looking at reducing the "sh meal and
oil content in our feed to minimise
the impact on ocean resources, while
also balancing the required growth
parameters. Our feed suppliers are
running research and development trials
with high energy diets which would
increase the e#ciency of our operation.
New technology
A test with new arti"cial intelligence
(AI) feeding software commenced at
our Waitata sea farm in winter 2020.
This software learns patterns from
underwater video footage and analyses
how the "sh behave and respond during
the feeding process. It is then able
to deliver a detailed analysis of "sh
behaviour which allows us to identify risk
situations and helps to optimise feeding.
Feed
Fish Oil
Sourced from
well managed
"sheries, "sh oil is
an essential source
of Omega 3
fatty acids
Vegetable / Poultry Oil
By-products of human food
production, these fats are a
crucial source of energy
Fish Protein
Sourced from well
managed "sheries and
by-products of human
food production, "sh
meal is a great source of
Omega 3 and essential
for growth
Land-animal Protein
By-products of human
food production, this
land-based protein is
essential for growth
Vegetable Protein
Protein is essential for
growth, using both land
animal and vegetable-
based proteins allows us
to reduce our reliance on
"sh protein
Cereal / Grain
A good source of energy
that also acts as a binder
in the feed recipe
Vitamins &
Minerals
Astaxanthin,
phosphorus &
calcium for strong
bones, vitamins C,
E, zinc and folic acid
to maintain overall
health and wellbeing
STRONGER TOGETHER
3736
NEW ZEALAND KING SALMON $ ANNUAL REPORT FY20
FARMING IN BALANCEFARMING IN BALANCE

We work to ful"l salmon
aquaculture’s potential
as a positive force for the
health of people, nature
and our company.
We are committed
to using resources
responsibly and
reducing our impacts
wherever possible.
RESILIENT
BRANDS
We proudly produce and
market a diverse range
of King salmon products.
From fresh whole salmon to
premium pet food, we create
King salmon products that
are loved both here in New
Zealand and worldwide.

RESILIENT BRANDS
Food safety is one of the top two priorities for our
company as it is crucial to our business, and most
importantly, our customers.
In the past !nancial year over 23,000 tests have been
carried out throughout the production process. Top of
the testing list is Listeria, a common bug found in the
environment around us. We also ensure traceability of
our products throughout our supply chain.
Food Safety
Farming
Safe and humane harvesting
processes contribute to producing
a high-quality product. 16 checks
are carried out in our hatcheries
and farms
Processing
Stringent hygiene and cleaning
practices which prioritise food
safety. 22 checks are
carried out in processing
Supply chain
Getting a great !nal product
safely to our consumers and chefs
by ensuring quality is maintained
throughout the supply chain.
4 checks are carried
out in distribution
End users
Consumers, chefs, retailers
and pets bene!t from healthy
and nutritious salmon
Bacillus cereus
Clostridium species
E.coli
Enterobacteriaceae
Faecal coliforms
Lactobacillus count
Listeria, 52% of
total testing
Moulds
Salmonella
Staphylococcus aureus
Total coliforms
Yeasts
Aerobic Plate Count
Total Microbiological Tests
(Checking for absence of, or within approved limits)
What We Test For
FOOD SAFETY CYCLE
Following best practice food safety guidelines to actively sample
our products prior to dispatch, a large number of tests are
carried out throughout the process from hatcheries to farms
and distribution with the majority in our factory. These are
precautionary tests and the graph below demonstrates the type
of tests which also include ruling out the presence of undesirable
heavy metals, residues and bacteria.
Of the thousands of tests carried out, listeria monocytogenes
was only found once in a salmon product, which was destroyed.
Of the other tests where listeria was detected, 99% were
environmental and in low-risk areas.
We have zero tolerance to listeria.
Traceability
We have a system to
record products and
batches from harvest to
manufacturing with date
and trace so we can track
products back through
the chain.
An individually numbered
gill tag is attached to
the salmon that make
our Ōra King grade. This
provides traceability and
evidence of our product’s
authenticity.
Shelf life
Shelf life is vigorously
tested prior to new
product launches and
monitored throughout the
life of each product type.
Customer Feedback
Our food safety team takes every piece of feedback from
customers (distribution companies and end users) very seriously,
carrying out thorough investigations to determine root cause.
Feedback received: 439
Majority of feedback related to vacuum loss in packaging and
only two for alleged food poisoning. All complaints were resolved.
To put this in perspective, we sold over 6 million packets of
salmon product. This included:
Listeria is a common bug (bacteria) widely found in the environment, including
soil and waterways. There are over 22 species of Listeria that exist but only one
species is known to be pathogenic and that is Listeria moncytogenes.
Listeria moncytogenes found in the food chain can cause Listeriosis which
causes serious illness in pregnant women, newborns, those with weakened
immune systems and the elderly. In severe cases it can kill.
Given Listeria can be prevalent in the environment and can cause illness
and death, New Zealand King Salmon focuses heavily on testing for this bug
throughout our environment from the farm to our ready-to-eat products.
In the last "nancial year, we carried out over 12,000 tests, many made up of
multiple samples or sample sites, to ensure the focus is where it needs to be.
What is Listeria monocytogenes?
2.81.41.2
million
Cold smoked
products sold
million
Hot smoked
products sold
million
Salmon
portions sold
23,000
TESTS CARRIED OUT
STRONGER TOGETHER
4140
RESILIENT BRANDS

ALL OFFICE#BASED TEAM
MEMBERS SUCCESSFULLY
WORKING FROM HOME
FOR LOCKDOWN WITHIN
48
hours
Every link in our supply chain is crucial in
delivering our quality products to the market,
in New Zealand and overseas.
The chain includes production planning, procurement, customer
services, logistics, coldstore and pick and pack teams, with our
information, communications and technology team delivering
critical services and systems throughout the chain. It’s all about
getting a great "nal product safely to our consumers and chefs
by ensuring quality is maintained throughout the supply chain.
PROCESSING
There has been some major investment in the past "nancial
year in the processing factory, centred around food safety.
• New washroom and chiller extension for our cold smoke
factory. This enabled smoke and brine operations to take
place with much less risk from cross contamination from
other processes.
• New hot smoke kiln installation. A single rack Reich Kiln was
purchased and installed into our hot smoke factory. The new
kiln has enabled complete separation between the raw and
cook sides, further reducing the risk of listeria contamination.
• New automated bin wash. The old bin wash building was
demolished and a semi-automated bin wash operation
installed. As well as washing bins in a consistent manner the
wash cycle includes a critical listeria kill step involving a rinse
at high temperature.
Other major projects included the installation of new Marel
auto-"lleting technology, the reorganisation of pick and pack,
the movement to shipper sales quantities and the elimination
of the use of polystyrene packaging from the smoked business.
There was a signi"cant team e$ort to create a safe environment
for our teams to work during Covid-19, including considerable
improvements to our whole "sh freezing capabilities.
Information Communications
and Technology (ICT)
Our ICT team launched the new Microsoft NAV ERP system.
This was a business wide project that involved super users from
across the business and took 18 months to deliver. Along with the
new Economic Response Planning (ERP) system, the team also
delivered a new data warehouse and reporting platform over
this period to support the ERP platform.
We have continued to develop and "ne tune NAV since going live
to ensure it meets the needs of our complex business.
The ICT team also had to address the challenges Covid-19
brought to the business. Over the previous two years we had
implemented many infrastructure changes and introduced
several remote working services to the business that made
the transition to working from home very easy. ICT Manager
David Wright said he was incredibly proud of the team’s ability
to assist in getting all o#ce-based team members working
successfully from home within 48 hours.
Apart from the major projects listed above, the ICT team
completed a cyber risk assessment, O#ce 365 review, and a
farm access review. Also, the team introduced a new carton
process in pick and pack and worked on infrastructure for a
number of barges and at the hatchery in Takaka.
Over the last twelve months the team experienced 22 priority
events that impacted production and a total of 6,359 issues
were raised with the helpdesk and of that 6,198 were resolved.
SUSTAINABILITY ACTIONS
Recycling
Gumboots: We are sending our used gumboots from the processing plant
to a gumboot manufacturer in Christchurch where they are recycled into
safety mats for use in children’s playgrounds. Two shipments of 200kg
(approx. 100 pairs) have been sent so far.
Smocks: These are sent to be recycled into rubbish bags or mulch "lm. So
far we have sent 4 pallets each weighing 160kg for a total of 640kg.
Water use
In the processing plant, the water use is recorded
FY20 FY19 FY18
Volume G&G 7,336t 7,931t 8,018
Fresh water used 66,358m
3
64,111m
3
74,385m
3

Code of Conduct
We are currently working on a set of
standard contracts for use throughout
the company, as part of this our code of
conduct will be built into these generic
documents, re-enforcing our commitment
to the UN Global Compact.
Sustainability
Sustainability is recognised as a key driver in
all tenders and contract negotiations. In the
tendering process a conscious decision has
been made that sustainability will comprise
a minimum 20% weighting when scoring the
proposals.
Our EV story
We added a third electric vehicle to our %eet in the past year as part of our ongoing e$orts to
reduce environmental impact and lead the way in sustainable business practices. Reducing
transport emissions is a well-documented part of New Zealand’s carbon emissions plan and the
initiative is symbolic of the change required by business to help to address this problem. To date
our three Hyundai Kona EVs have done a total of 61,647 green kilometres.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
4342
SUPPLY CHAIN
RESILIENT BRANDSRESILIENT BRANDS

This year our e'orts were concentrated on
improving margin from fall out products,
improving (avours of existing products, and
accommodating larger "sh into existing
products, with Covid-19 putting a temporary
halt on some of our trial work.
One notable achievement was a project completed for an
international customer with the fastest NPD turnaround in
our history. After a request for low trim bone-in "llets for a US
customer in December 2019, and trial work completed over
the Christmas break, the customer visited us to "nalise the
speci"cations of the "llets in person one week before the "rst
production run in January 2020.
In February, the "rst production run was completed for the US
Regal Wood Roasted 100g portions comprising four SKUs. The
US team had always wanted to add a hot smoked product to
their portfolio, however the existing 200g size was too large,
as was the packaging. The project team brainstormed how to
As the highest proportion of packaging relates to liner bags
and gel pads, we have concentrated e$orts for reduction here,
without compromising quality or food safety. Various projects
are underway including a new bin wash to partly remove liner
bags from use, and options to reduce factory use or alter the
speci"cation to reduce plastic usage overall. We have also
begun to review gel pad material and reusability.
package the product using existing machinery and worked out
a modi"cation to the existing dyes in the existing machine.
Development on portion shape and weight was completed and
a new sleeve was designed to "t the tray. The new SKUs are now
in the market.
During the Covid-19 Level 4 lockdown, the NPD team supported
the rebuild of sales by working on various fast turnaround
requests for portions, "llets and existing products for new
markets including Japan, China and Australia.
We are currently working towards two exciting new launches for
Regal in FY21. Improvement projects progressed well including
shelf life, packaging and yield.
Gross margin for new products launched in FY20 was $705,000
and there were 24 SKUs launched.
Our new software system allows us to calculate the packaging
weight of our products, giving an overview of how much we
have used, the percentage in di$erent packing products and the
money spent. It means we can prioritise the products where we
can cut down on packaging and waste. We now have a baseline
in order to measure improvements in future years
Cardboard carton usage has increased, with a
corresponding decrease in polybin usage, in our drive
to reduce the use of polysterene.
We have joined the Australian Packaging Covenant
Organisation (APCO) which will enable us to analyse our
packaging use regularly and we will be able to carry the
logo on our products.
Breakdown of plastic product packaging
components used to pack our salmon
54% Film
2% Plastic bags
11% Pouches
33% Recyclables
% by weight
32% Liner bags,
Gel pads,
Plastics,
(other)
15% Plastic !lm,
Pouches,
Trays
6% Labels,
Paper,
Boards
9% Sleeve
(cardboard)
11% Polystyrene
27% Cartons
% by weight
Breakdown of packaging
components used in our factory
SUSTAINABILITY ACTIONS
Packaging Sustainability Group
As a partner in the New Zealand Plastics Packaging Declaration, we have
declared our commitment to reaching the ultimate goal of using 100%
reusable, recyclable or compostable packaging across our business by 2025.
The Packaging Sustainability group worked on several projects during FY20.
Successes in this space included the removal of plastic interleave from our
food service Regal packs and from a premium smoked salmon product. This
will save the company $11,000 in material cost per annum and 27,883m
2
of
plastic per year from going into the environment (based on "gures from FY19).
By moving to plantic-based web for our wood roasted portions and nibbles,
we have saved approximately 38,450kgs of petrochemical based material
from being produced (based on "gures from FY20).
REUSABLE, RECYCLABLE
OR COMPOSTABLE
PACK AGING ACROSS
OUR BUSINESS BY 2025.
GOAL:
100%
45
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
44
NEW PRODUCT DEVELOPMENT
RESILIENT BRANDSRESILIENT BRANDS

OUR BRANDS
RESILIENT BRANDSRESILIENT BRANDS
Our key focus for the year has been deeper
partnerships. We have worked closely with
our importers and distributors, with regular
outreach, brand education and sales support.
We also extended our ambassador programme, formalising
our relationship with 20 North American high-pro"le chefs
and hosting events and collaborations with our Australian,
Japanese, Chinese and New Zealand ambassadors. We have
grown our social media following and engagement as a key
communication tool of choice with our target audience.
During the Covid-19 crisis we supported our loyal chefs and
donated salmon to feed furloughed foodservice workers,
healthcare workers and others in need.
Ōra King Awards “Sustain”
This year we focused our messaging on the collective e$orts to grow our salmon
in the most sustainable way possible and were able to activate this through our
Ōra King Awards programme with the 2019 theme “Sustain”.
We invited chefs to communicate their sustainability story through their dish
entry. This theme resonated with our chefs and we achieved our highest level
of entries, both in quantity and quality. The competition also stepped up a
level with a launch party in Auckland, a series of ambassador videos (telling
their sustainability stories), a media launch in Australia, a website interface to
enable easier entry, a digital app for those attending awards week, and a very
experienced group of judges.
Social Media
In the last three years we have grown our Instagram following from 2,500 to
over 13,000 and our reach extends well beyond this — posts featuring Ōra King
when shared by some of our loyal high pro"le chefs reach audiences of over
100,000 regularly and in some instances content can achieve over a million
views, as we have seen with a recent collaboration with NZTE and esteemed
chef Massimo Bottura.
Our social media strategy enabled us to communicate with our chefs and
customers during the Covid-19 lockdown. With most restaurants around the
world closed, we were able to utilise our Instagram platform to communicate
availability of supply and connect with our ambassadors and loyal customers.
Our support for out-of-work foodservice employees included helping to provide
over 18,000 meals to those in need. Social media engagement provided a bridge
for Ōra King menu listings as restaurants recover and reopen.
Dish by Phil Clark of
Phil’s Kitchen, Auckland
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
4746

Ambassador Programme
Our ambassador programme is based around key chefs
who we identify as being great supporters of Ōra King,
and whose relationship with us is formally recognised. The
relationship is one which is mutually bene"cial, based on
a two way exchange of opportunities, networks and social
media connections. Their reach enables us to get our story
out to a much wider audience, and their telling of the story
adds signi"cant credibility. A great example is the article
chef Matt Beaudin from Monterey Bay Aquarium wrote in the
widely followed Culinary Epicurean publication following his
attendance at the Ōra King Awards week.
New Product Development
With an eye to the future, we are researching and developing
new packaging which re%ects the corporate goal of 100%
reusable/recyclable or compostable packaging by 2025. We
continue to explore new products in the Ōra King brand family,
with a second Ōra King Tyee ocean run trial and a second o$er
of Ōra King Nui "llets: large impressive "llets with a stunning
deep orange colour.
Brand Assets
We invested this year in
updating of our brand
assets. With the brand
now seven years old it was
time to refresh and re"ne
some of the imagery and
messaging. We now have
a range of stunning new
images, a new brand book
and an updated website.
60%
awareness
*
Southern Ocean
With over 30 years of leadership in the salmon
category in New Zealand, Regal is our premium
retail brand. The past year has been tough for
the category with increased competition from
imported, cheaper Atlantic salmon.
The impact of Covid-19 and the associated
boost in grocery channels did not translate
from the essentials into salmon, with many
seafood serve counters actually closing
temporarily.
Fortunately we did not see a decline in retail sales in New
Zealand and we saw a lift in our sales in overseas markets.
Looking forward, there are ambitious goals to grow the retail
share of the business and Regal has a good platform to build on.
Domestically we "nished the year with a market share of 38.7%
and a brand awareness of 86% amongst smoked salmon
shoppers in New Zealand.*
In the US the brand continues to grow, with an increase in the
states our retail footprint covers, and some key upscale retail
accounts secured. There is a new website for all markets, with
tips and recipes making salmon easy and accessible for our
shoppers.
In New Zealand our biggest launch this year was of the Regal
Oven Ready range: two portions of bone out salmon, with a
%avour sachet in a convenient oven ready foil tray. This launch
was supported with a video ad featuring Al Brown and Reg the
seal following on from the success of this format for the Manuka
launch two years ago. While the ad was not on nationwide TV,
it was on digital channels and OnDemand where it delivered
excellent results with around a 50% completion rate meaning
that people watched the ad even if they could skip it.
Southern Ocean is our value brand, predominantly sold as
smoked salmon products into New Zealand domestic channels.
Southern Ocean is the second most recognised brand (after
Regal) with 60% awareness*. We are relaunching the brand
into new look packaging and a new website and social
channels to help attract value shoppers away from imported
Atlantic salmon brands.
*Nielsen Brand Health Tracker March 2020
The launch of our own
Atlantic salmon brand Regal
Epicurean was designed to
o$er shoppers closer to the
value end of the market
the best possible Atlantic
salmon. Sales are tracking
along nicely, and we are
not seeing signi"cant
cannibalisation of the
Regal King range.
In the US we ventured properly into e-commerce for the "rst
time with the Regal brand, creating our own store-front on
Amazon. We can deliver Regal smoked salmon to around
90% of the US in under 48 hours by road. Sales are building
on this platform and accelerated dramatically as the impacts
of Covid-19 hit. E-commerce will grow in importance for us
moving forward.
We also launched 4 %avours of Regal wood roasted
salmon into the USA, a market where cold smoked salmon
dominates. It is early days, but sales results are encouraging.
Total Regal branded sales for the "scal year are $32m with
$7.3m coming from overseas markets.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
4948
RESILIENT BRANDSRESILIENT BRANDS

RESILIENT BRANDSRESILIENT BRANDS
Omega Plus Pet Food and Treats
This year we developed two additional wet cat food
recipes, King Salmon & Duck and King Salmon & Beef. In
May 2020 we completed the development of a new 125ml
King Salmon Oil product designed speci"cally for the
Chinese market incorporating a new natural antioxidant
that will better protect the quality of our premium grade
salmon oil while meeting our customers demand for all-
natural products.
Our export sales of Omega Plus treats to China continues
to grow, and with it we have expanded our facilities in
Nelson to meet the increased demand. The new packing
bay became operational in March 2020 to meet current
demand and allow for growth. On May 19, 2020 we
celebrated 12 months of sales into China for Omega Plus.
We were also successful in achieving a grant through the
NZTE International Growth Fund providing us with access
to funds to accelerate the growth of this market over the
next 3 years. We have shipped over 95,000 packets of
treats and 123,000 cans of salmon-based cat food utilising
raw material. We have also employed a full-time resource
in China to support this market.
Launching Omega Plus into the signi"cant US market is
our next challenge.
Driving brand awareness and distribution of Omega Plus in
the domestic market is also a focus. We are now using the
tagline ‘The Salmon Superfood’ to showcase the unique
health and taste bene"ts of our range. After researching
consumer needs thoroughly, we prepared and launched
an advertising campaign in New Zealand to support our
domestic strategy.
The Omega Innovations team continues to expand our range
of premium products and advance the utilisation of remaining
raw materials. Our objective remains the same – full nose to tail
utilisation of all salmon.
The new year saw the addition of a Research and Development
Manager to our Nelson team and a Global Brand Manager for
Omega Plus based in Auckland. Our team of six is well placed to
continue expanding on the success of our brands and innovating
new products for the growing pet food market.
Remaining Raw Materials
In late 2018 we invested in re-purposing a factory space
speci"cally to process remaining raw materials into a
block format. This was driven out of a customer need to
produce consistent input material for New Zealand pet food
manufacturers. In FY20 we produced 180 tonnes of block
product and will continue to grow this year on year creating
additional value for NZKS and minimising the amount of
material directed to rendering.
Demand for raw materials into the pet food category continues
to strengthen and salmon continues to be a highly desirable
input material.
“We have shipped over 95,000
packets of treats and 123,000
cans of salmon-based cat food
utilising raw material to China.”
OMEGA PLUS
CANNED FOOD SALES
INCREASED BY
OMEGA PLUS TREATS
SALES INCREASED BY
71
%
61
%
STRONGER TOGETHER
5150
NEW ZEALAND KING SALMON ! ANNUAL REPORT FY20

RESILIENT BRANDSRESILIENT BRANDS
37
%
NORTH
AMERICA
NEW
ZEALAND
44
%
6
%
AUSTRALIA
6
%
ASIA
!EX JAPAN
& CHINA"
3
%
JAPAN
2
%
EUROPE
2
%
CHINA
SALES BY MARKET
$$ FY20%
Demand for most of the past "nancial year
continued to exceed the available supply, but
then came Covid-19 which changed the world
— demand dropped substantially and we had
to transition from a predominantly foodservice
company to growing our retail business.
The "rst half of the "nancial year provided very strong demand
that exceeded our available supply. As the second half of the
"nancial year arrived, supply was less constrained. Steady gains
were being made in the January to March period before Covid-19
struck. Around 50 per cent of our customers are based in the
food service sector which saw the greatest negative impact
from Covid-19 restaurant shutdowns around the world and the
subsequent switch towards retail. During the initial phase fresh
salmon and smoked products were not high on shoppers’ panic
buying lists and it took several weeks for some normal trading
patterns to emerge.
MARKET
GROWTH AND
DEMAND
China has been through two signi"cant shutdown periods that
have hampered the growth that was happening in the "rst half
of the year. Negative publicity regarding Covid-19 detections in
wet markets which is where a majority of fresh salmon is traded
will have a lingering impact on the recovery.
North America started well at the beginning of the year but like
all other markets took a severe hit when Covid-19 struck in March.
Since that time, we have seen our foodservice channels transition
across to online and retail base distribution models. Our fresh
sales volumes have nearly recovered to their pre-Covid-19 levels
but the portion business into restaurant chains has all but halted
as many of these outlets remain closed. Our move in the past
couple of years into retail is positioning us well as the transition is
away from foodservice. Our Regal branded products are sought
after and sales are up "ve-fold to 120 tonnes.
Likewise, in Asia we have focused much of our e$ort over
the past year on our Regal branded salmon into retail stores.
Volumes of Regal branded salmon for this "nancial year were 83%
up compared to FY19 and growth remained strong through the
Regal
20
%
New Zealand
King Salmon
33
%
39
%
Ōra King
Southern
Ocean
7
%
Omega
Plus
1
%
8
%
Wood
Roasted
Cold
Smoked
Other
5
%
17
%
Whole
Salmon
49
%
21
%
Fillets and
Portions
SALES BY
BRAND
$$ FY20%
SALES BY
PRODUCT
$$ FY20%
Domestic
retail
23
%
International
foodservice/retail
57
%
Domestic
Foodservice
20
%
SALES BY
CHANNEL
$$ FY20%
lockdown period. Foodservice sales within our Asian markets have
remained pleasingly strong throughout this di#cult period.
Our Australian market has remained steady throughout the past
year. We are predominantly foodservice orientated within this
market. Similar to most of our other markets we are moving more
of our e$ort towards retail with our Regal branded products.
Europe is very similar but in our shift towards more retail we have
embarked on recruiting a retail specialist to add to the European
based team.
For many years the Japan market has been strongly retail based
for our business. In more recent years we had been building up
the foodservice sector, particularly with sushi chain outlets. With
the recent changes this is serving us well as the foodservice sector
contracts and retail remain steady.
New Zealand retail has remained "rm throughout FY20 and
continues this trend post the lockdown. New Zealand foodservice
was solid through the year but almost entirely shut throughout the
lockdown period. Post lockdown has seen a steady increase with
diners returning to support and enjoy their local establishments.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
5352

CATRIONA MACLEOD
Independent
Non-Executive Director
GIBio, MSc, PhD, GAICD
Associate Professor Catriona
Macleod is a senior scientist
with more than 20 years’
experience in marine resource,
water and aquaculture
management. She has
provided recommendations
to inform regulatory policy
and the development of
sustainable aquaculture in
Australia and internationally.
Our Board brings many years of experience in salmon
farming, processing and marketing alongside broader
business experience in New Zealand and internationally.
JOHN RYDER
Independent Chairman
MCom (Hons), FCA, CMA
BOARD OF DIRECTORS
JACK PORUS
Non-Executive Director
BCom, LLB
Jack is joint Managing Partner
of law "rm Glaister Ennor
which he joined in 1972. He
is currently the chairman of
Pinnacle Life Limited and a
director of Neil Corporation
Limited and Norfolk Financial
Management Limited. Jack
is a nominated appointee for
major New Zealand
King Salmon shareholder
Oregon Group.
John is a chartered
accountant and an active
investor and company director.
His current roles include
Executive Chairman of Qestral
Corporation Limited and
Independent Chairman of
Direct Capital IV Management.
CHIONG YONG TIONG
Non-Executive Director
MCom, BCom
PAUL STEERE
Independent
Non-Executive Director
LAI PO SING, TOMAKIN
Non-Executive Director
MBA, BBA, FCPA, FCA, FCCA,
FCIS, FCS, CIA, CRMA, CISA
GRANT ROSEWARNE
Managing Director and CEO
MBA (Executive), BAppSc
Yong Tiong is Managing
Director of Timbergrow
Limited and Maraetai Land
Development Limited. He
is also a director of property
development company Neil
Corporation Limited and is on
the board of Saint Kentigern
School in Auckland. Yong
is a nominated appointee
for major New Zealand
shareholder Oregon Group.
Paul was the founding
CEO of New Zealand King
Salmon from its formation
and has been a director of
New Zealand King Salmon
since 2009. Paul is currently
Chairman of Nelson Airport
Limited, Chairman of Allan
Scott Wines, and Chairman
of the Aquaculture Advisory
Group South Paci"c
Community. He was recently
made a Chartered Fellow of
the New Zealand Institute
of Directors.
Mr Lai is a Director of China
Resources Ng Fung Limited
and the Vice President, Chief
Financial O#cer and Company
Secretary of China Resources
Enterprise Limited. He is the
Executive Director, the Chief
Financial O#cer and the
Company Secretary of China
Resources Beer (Holdings)
Company Limited, which is
listed on the Hong Kong
stock exchange.
Grant was appointed CEO of
New Zealand King Salmon
in 2009. During his time as
CEO, Grant has focused on
elevating New Zealand King
Salmon’s unique products from
a premium commodity to a
worldwide branded
food delicacy.
We welcomed Catriona
Macleod to the board
in February 2020
“I am very much
looking forward
to joining the
New Zealand
King Salmon
board and to be
working with a
company with
such strong
sustainability
credentials.”
SENIOR LEADERSHIP TEAM
GRANT ROSEWARNE
Managing Director and CEO
See previous page.
ALAN COOK
BA
Chief Operating O"cer
Alan joined New Zealand
King Salmon in 2019
with 20 years’ senior
management experience in
the aquaculture industry.
Alan’s career has seen him
work in salmon farming
on both coasts of Canada,
Chile and in Washington
State on the US west coast.
ANDREW CLARK
BCom, CA
Chief Financial O"cer
Andrew joined New Zealand
King Salmon in 2011. Prior
to joining NZKS he spent 17
years in the dairy industry
where he occupied a number
of senior "nance roles in New
Zealand, the United States,
Venezuela and Uruguay.
JEMMA MCCOWAN
BCom, BA
General Manager, Brands &
Sustainability
Jemma joined New Zealand
King Salmon in 2012 and
has overall responsibility for
delivering the branding and
sustainability programmes.
She has 20 years’ experience
in marketing management
and international business.
In June 2019 Jemma was
appointed as a Future
Director by agribusiness
company Scales Corporation,
under the Institute of
Directors’ programme.
GRAEME TREGIDGA
General Manager, Sales
Graeme joined New Zealand
King Salmon in 2004. Prior
to joining NZKS he spent
16 years in the horticulture
industry with various roles
in processing, international
and domestic sales and
management.
SHAUN YOUNG
BCom
General Manager, Supply Chain
Shaun Young has been with
New Zealand King Salmon
since 2008. He was based in
Auckland as General Manager
Retail Sales & Marketing
before moving to Nelson in
early 2015 to take up the
role of General Manager
Supply Chain. Previously
he worked with Goodman
Fielder and Cadbury in
sales management and
analytical roles.
NEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
54
BOARD OF DIRECTORS
55
Below left to right: Graeme
Tregidga, Jemma McCowan,
Alan Cook, Shaun Young, Grant
Rosewarne, Andrew Clark.
SENIOR LEADERSHIP TEAM

FINANCIAL
STATEMENTS
Committed to the responsible
farming, processing and sale
of premium quality King salmon,
your investment means we can
work towards developing a
world-leading aquaculture
industry that is the greenest
primary industry in the country.
CONTENTS
Consolidated Statement Of Comprehensive Income 58
Consolidated Statement Of Financial Position 59
Consolidated Statement Of Changes In Equity 60
Consolidated Statement Of Cash Flows 61
Notes To The Consolidated Financial Statements 62
1. Corporate Information 62
2. Basis Of Preparation 62
3. Signi!cant Accounting Policies 63
4. New Standards Adopted And Standards Issued Not Yet Adopted 68
5. Segment Information 68
6. Other Income 69
7. Expenses 69
8. Finance Income And Costs 69
9. Income Tax 70
10. Components Of Other Comprehensive Income 71
11. Earnings Per Share 71
12. Cash And Cash Equivalents 71
13. Trade And Other Receivables 72
14. Inventories 72
15. Biological Assets 73
16. Property, Plant And Equipment 74
17. Intangibles 75
18. Right-Of-Use Assets 76
19. Lease Liabilities 76
20. Lease Liabilities Current/Non-Current 76
21. Interest Bearing Loans And Borrowings 77
22. Trade And Other Payables 77
23. Employee Bene!ts 77
24. Commitments And Contingencies 77
25. Financial Risk Management 78
26. Fair Value Of Financial Instruments 81
27. Capital Management 81
28. Capital And Reserves 82
29. Events After Balance Date 83
30. Related Party Disclosures 83
31. Auditor’s Remuneration 84
32. Reconciliation Of Net Operating Cash Flow To Pro!t/(Loss) 84
33. Revenue From Contracts With Customers 84
Independent Auditor’s Report 86
Corporate Governance 90
Director Disclosures 107
Corporate Directory 111
Glossary 112

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
DIRECTOR
26 August 2020
DIRECTOR
26 August 2020
The above consolidated statement of !nancial position should be read in conjunction with the accompanying notes.
For and on behalf of the Board, who authorised the issue of these !nancial statements on 26 August 2020.
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
20202019
Note$000$000
Revenue from contracts with customers33155,344 172,609
Cost of goods sold including fair value uplift at point of harvest14(145,768) (172,147)
Fair value gain on biological transformation1564,124 60,002
Freight costs to market(15,351) (15,642)
Gross pro!t58,349 44,822
Other income64,247 857
Sales, marketing and advertising expenses(12,473) (9,619)
Distribution overheads(4,131) (3,600)
Corporate expenses7(9,012) (7,006)
Other expenses7(906) (2,391)
Earnings before interest, tax, depreciation and amortisation36,074 23,063
Depreciation and amortisation expense16,17,18(9,385) (6,234)
Finance income812 96
Finance expenses8(1,748) (1,188)
Pro!t before tax24,953 15,737
Income tax expense9(6,949) (4,387)
Net pro!t after tax18,004 11,350
Other comprehensive income
Other comprehensive income that may be reclassi!ed to pro!t or loss in subsequent periods:
Exchange di!erences on translation of foreign operations10154 (244)
Movement on cash "ow hedges105,522 (2,374)
Income tax e!ect of movement on cash "ow hedges10(1,546) 665
Net other comprehensive income4,130 (1,953)
Total comprehensive income22,134 9,397
Earnings per share
Basic earnings per share11 $0.13 $0.08
Diluted earnings per share11 $0.13 $0.08
20202019
ASSETSNote$000$000
Current assets
Cash and cash equivalents127,115 6,231
Trade and other receivables1312,777 13,502
Inventories1435,612 20,830
Biological assets1581,784 68,052
Derivative #nancial assets26907 494
Total current assets138,195 109,109
Non-current assets
Property, plant and equipment1660,481 51,843
Biological assets1510,594 10,180
Derivative #nancial assets269,120 1,709
Deferred tax asset93,303 2,443
Intangible assets178,655 7,521
Right-of use assets184,581 -
Goodwill1739,255 39,255
Total non-current assets135,989 112,951
TOTAL ASSETS274,184 222,060
LIABILITIES
Current liabilities
Trade and other payables2214,847 16,499
Employee bene#ts232,884 2,429
Borrowings211,132 416
Lease liabilities201,347 -
Other #nancial liabilities30149 149
Derivative #nancial liabilities263,868 2,091
Taxation payable3,866 605
Total current liabilities28,093 22,189
Non-current liabilities
Employee bene#ts23558 566
Borrowings2137,000 15,000
Lease liabilities203,258 -
Deferred tax liabilities918,436 13,507
Derivative #nancial liabilities262,525 2,046
Total non-current liabilities61,777 31,119
TOTAL LIABILITIES89,870 53,308
NET ASSETS184,314 168,752
EQUITY
Share capital28122,606 122,595
Reserves2,978 (1,455)
Retained earnings58,730 47,612
TOTAL EQUITY184,314 168,752
Net tangible assets per share
Net tangible assets per share $0.96 $0.86
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
5958
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMECONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Share
Capital
Foreign
Currency
Translation
Reserve
Hedge
Reserve
Share
Based
Payment
Reserve
Retained
Earnings
Total
Equity
Note$000$000$000$000$000$000
Balance as at 1 July 2019122,595 (639) (1,391) 575 47,612 168,752
Pro#t for the period- - - - 18,004 18,004
Other comprehensive income/(loss)10- 154 3,978 - - 4,132
Total comprehensive income/(loss) for the period- 154 3,978 - 18,004 22,136
Shares issued2811 - - - - 11
Share based payment expense- - - 301 - 301
Dividends paid - ordinary28- - - - (6,886) (6,886)
- supplementary- - - - (211) (211)
- foreign investor tax credit- - - - 211 211
Balance as at 30 June 2020122,606 (485) 2,587 876 58,730 184,314
Balance as at 1 July 2018122,579 (395) 318 405 43,394 166,301
Pro#t for the period- - - - 11,350 11,350
Other comprehensive income/(loss)10- (244) (1,709) - - (1,953)
Total comprehensive income/(loss) for the period- (244) (1,709) - 11,350 9,397
Shares issued2816 - - - - 16
Share based payment expense- - - 170 - 170
Dividends paid- ordinary28- - - - (7,131) (7,131)
- supplementary- - - - (189) (189)
- foreign investor tax credit- - - - 189 189
Balance as at 30 June 2019122,595 (639) (1,391) 575 47,612 168,752
20202019
Note$000$000
Operating activities
Receipts from customers158,080 171,892
Payments to suppliers(109,849) (115,746)
Payments to employees(42,212) (39,731)
Interest received12 138
Interest paid(1,210) (850)
Insurance and settlement income311 500
Government grant received - Wage subsidy3,772 -
Government grants received97 100
Income tax paid(4,777) (5,361)
Net cash "ows from/(used in) operating activities324,224 10,941
Investing activities
Proceeds from sale of property, plant and equipment24 10
Purchase of property, plant and equipment(16,148) (14,191)
Purchase of intangible assets(1,643) (2,709)
Net cash "ow (used in)/from investing activities(17,767) (16,890)
Financing activities
Proceeds from borrowings22,716 5,000
Gross proceeds from share issue11 16
Dividends paid(6,886) (7,131)
Payment of lease liabilities(1,414) (134)
Net cash "ows (used in)/from !nancing activities14,427 (2,249)
Net increase/(decrease) in cash and cash equivalents884 (8,197)
Cash and cash equivalents at 1 July126,231 14,428
Cash and cash equivalents at 30 June127,115 6,231
The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.
The above consolidated statement of cash "ows should be read in conjunction with the accompanying notes.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
6160
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYCONSOLIDATED STATEMENT OF CASH FLOWS

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
1. CORPORATE INFORMATION
The consolidated #nancial statement of New Zealand King Salmon Investments Limited (the Company) and its subsidiaries (together
the Group) for the year ended 30 June 2020 were authorised by the directors on 26 August 2020.
New Zealand King Salmon Investments Limited is a pro#t-orientated company incorporated and domiciled in New Zealand. The
Company is registered under the Companies Act 1993 and listed on the NZX Main Board (“NZX”) and the Australian Securities Exchange
(“ASX”). The Company is a FMC reporting entity under the Financial Markets Conduct (FMC) Act 2013. The Group is principally engaged
in the farming, processing and sale of premium salmon products.
2. BASIS OF PREPARATION
A. STATEMENT OF COMPLIANCE
The consolidated #nancial statements comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS)
and also with International Financial Reporting Standards (IFRS). The #nancial statements are prepared under NZ GAAP and FMC
Act 2013.
B. BASIS OF MEASUREMENT
The #nancial statements have been prepared on a historical cost basis except for biological assets and #nancial instruments which have
been measured at fair value. The carrying values of recognised assets and liabilities that are designated as hedged items in hedging
instruments otherwise be carried at amortised cost are adjusted to recognise changes in the fair values attributable to the risks that are
being hedged in e!ective hedge relationships.
The consolidated #nancial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand ($000),
except when otherwise indicated.
The consolidated #nancial statements provide comparative information in respect of the previous period.
C. SIGNIFICANT ACCOUNTING JUD GEMENTS, ESTIMATES AND A SSUMPTIONS
The preparation of the Group’s consolidated #nancial statements requires management to make judgements, estimates and
assumptions that a!ect the reported outcomes of revenues, expenses, assets, liabilities and the accompanying disclosures. The Group
based its assumptions and estimates on parameters available when the consolidated #nancial statements were prepared. Uncertainties
about these assumptions and estimates could result in an outcome that requires a material adjustment to the carrying amount of
assets or liabilities in future periods.
Speci#c areas requiring signi#cant estimates and judgements include:
Valuation of biological assets
The Group recognises stocks of live #sh at fair value less costs to sell according to the principles of NZ IAS 41 Agriculture. The fair value
is measured using a valuation model that relies on various assumptions and information available at balance date. Inputs include
anticipated market prices, quality mix, current weights of livestock relative to expected harvest weight, mortality rates, growth rates and
production costs. The income or loss that is ultimately recognised at time of sale may be signi#cantly di!erent from that implied by the
fair value adjustment at the end of a reporting period. The fair value uplift from accumulated costs to date has no cash impact. Further
details of the valuation and sensitivity to change in key inputs are given in note 15.
Inventory (Finished goods) obsolescence
Inventories are stated at the lower of cost or net realisable value, and the Group uses judgment and estimate to determine the net
realisable value of inventory at the end of each reporting period.
Due to the rapid impact of the pandemic virus Covid-19 impacting signi#cantly on #nished stock holdings, the Group estimates the net
realisable value of inventory for obsolescence and unmarketable items at the end of reporting period and then writes down the cost of
inventories to net realisable value. The net realisable value of the inventory is mainly determined based on assumptions of future demand
within a speci#c time horizon.
Impairment testing of intangibles
The Group reviews the carrying value of goodwill on an annual basis and assesses whether it is impaired according to the principles of
NZ IAS 36 Impairment of Assets. This requires the goodwill to be allocated to cash generating units with which it would naturally be
associated and the value in use of the cash generating units to be estimated. The value in use is estimated using a standard industry
model that relies on various assumptions and information available at balance date. Inputs include estimations of the growth rate of the
Group, future market conditions, prices, and discount rates. Further details of the value in use assessment are given in note 17.
Valuation of !nancial derivatives
The Group recognises #nancial derivatives at fair value according to the principles of NZ IFRS 13 Fair Value Measurement. The value is
calculated by a third party expert using an industry standard model. Inputs to the model are obtained externally by the service provider.
Further details of the valuation are included in note 25.
Useful lives of assets
The Group estimates the useful lives of property, plant and equipment and intangible assets based on historical performance and
currently consented future asset uses.
Revenue from contracts with customers
The Group reviews individual transactions to determine the amount and timing of revenue from contracts with customers.
D. FOREIGN CURRENCY TRANSLATION
Functional and presentation currency
The Group’s consolidated #nancial statements are presented in New Zealand dollars, which is also the parent company’s functional
currency. The Australian subsidiary’s functional currency is Australian dollars which is translated into the presentation currency in these
#nancial statements. The USA subsidiary’s functional currency is United States dollars which is translated into the presentation currency
in these #nancial statements.
Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency and then translated by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of
exchange at balance date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the
date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates
at the date when the fair value was determined.
3. SIGNIFICANT ACCOUNTING POLICIES
A. BASIS OF CONSOLIDATION
The #nancial statements comprise the #nancial statements of New Zealand King Salmon Investments Limited and its subsidiaries (per
note 27) as at 30 June each year. Subsidiaries are all those entities over which the Company has control.
The #nancial statements of the subsidiaries are prepared for the same reporting period as the Parent company using consistent
accounting policies.
In preparing the consolidated #nancial statements, all intercompany balances and transactions, income and expenses and pro#t and
losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by the Group and cease to be consolidated from the date
on which control is transferred out of the Group.
B. BUSINESS COMBINATIONS
Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination is
measured at fair value which is calculated as the sum of the acquisition date fair value of assets acquired by the Group and the liabilities
assumed by the Group. Acquisition related costs are expensed as incurred and included in administrative expenses. Any contingent
consideration to be transferred by the Group is recognised at fair value at acquisition date.
C. FINANCIAL INSTRUMENTS
Financial assets are classi#ed, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive
income (OCI), and fair value through pro#t or loss. In order for a #nancial asset to be classi#ed and measured at amortised cost or fair
value through OCI, it needs to give rise to cash "ows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash "ows that
are not SPPI are classi#ed and measured at fair value through pro#t or loss, irrespective of the business model. Subsequently the Group
applies the following accounting policies for #nancial instruments:
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and call deposits. For the purpose of the statement of cash "ows,
cash and cash equivalents consist of cash and short-term deposits net of outstanding bank overdrafts.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
6362
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Trade and other receivables
Short term trade and other receivables are not discounted and are initially stated at cost. Gains and losses are recognised in the pro#t or
loss when the receivables are written o! or impaired.
For trade receivables and contract assets, the Group applies a simpli#ed approach in calculating an allowance for expected credit loss
(ECL). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECL’s at each
reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-
looking factors speci#c to the debtors and the economic environment.
Loans
Loans and amounts owing from related companies are non-derivative #nancial assets with #xed or determinable payments that are not
quoted in an active market. After initial recognition such assets are carried at amortised cost using the e!ective interest method. Gains
and losses are recognised in pro#t or loss when the loans are derecognised or impaired.
Trade and other payables
Trade and other payables are carried at cost due to their short term nature and are not discounted. They represent liabilities for goods
and services provided to the Group prior to the end of the #nancial year that are unpaid, and arise when the Group becomes obliged to
make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within
30-60 days of recognition.
Interest bearing borrowings
After initial recognition interest bearing borrowings are subsequently measured at amortised cost using the e!ective interest method.
Fees paid on establishment of loan facilities that are yield related are included as part of the carrying amount. Borrowings are classi#ed
as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the
balance date. Borrowing costs are generally recognised as an expense when incurred, with the exception of borrowing costs associated
with a qualifying asset which are capitalised as part of the cost of that asset.
Financial guarantees
Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder
for a loss it incurs because the speci#ed debtor fails to make a payment when due in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributed
to the issuance of the guarantee. Subsequently the liability is measured at the higher of the best estimate of the expenditure required to
settle the present obligation at balance date and the amount recognised less cumulative amortisation.
Derivative !nancial instruments and hedging
The Group uses derivative #nancial instruments including forward currency contracts, options and interest rate swaps to hedge risks
associated with interest rate and foreign currency "uctuations. Such derivative #nancial instruments are initially recognised at fair value
on the date on which a derivative contract is entered into and are subsequently re-measured to fair value at balance date. Derivatives
are carried as assets when their fair value is positive and as liabilities when their fair value is negative.
The fair values of forward currency contracts are calculated by reference to current forward exchange rates for contracts with similar
maturity pro#les. The fair values of interest rate swaps are determined by reference to market values for similar instruments.
The Group designates its derivative #nancial instruments as hedges of a particular risk associated with a recognised asset or liability
or a highly probable commitment that could a!ect pro#t or loss. The e!ective portion of the gain or loss on the hedging instrument is
recognised directly in other comprehensive income in the hedge reserve, while the ine!ective portion is recognised in pro#t or loss as
other income or expenses.
Amounts accumulated in equity are transferred to pro#t or loss when the hedged item a!ects pro#t or loss.
D. INVENTORIES
Inventories including raw materials, work in progress and #nished goods are valued at the lower of cost or net realisable value. Costs
incurred in bringing each product to its present location and condition are accounted for as follows:
Raw materials – the cost of #sh is measured at fair value at harvest date. The cost of other raw materials is based on the purchase price
including import duties and other taxes, transport, handling and other costs directly attributable to the acquisition of the goods and
materials. Costs are determined on a weighted average basis.
Manufactured !nished goods and work in progress – cost of direct materials, labour and a proportion of manufacturing overheads
appropriate to the state of manufacture. Costs are assigned on the basis of weighted average costs. The cost of items transferred from
biological assets is their fair value less costs to sell at the date of harvest.
Net realisable value – the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated
costs necessary to make the sale.
E. BIOLOGICAL ASSETS
Biological assets include #sh livestock measured at fair value less estimated costs to sell. The net gain or loss resulting from the fair value
measurement is recognised in pro#t or loss.
The fair value of #sh livestock is derived from the amount expected to be received from the sale of the asset in an active market. The
target live weight of the harvestable #sh is de#ned as a #sh with a live weight of 4kg or greater. Many #sh are harvested with a live
weight above or below this weight.
For brood stock and #sh where little biological transformation has taken place since initial cost was incurred, cost less impairment is used
as an approximation of fair value. This value is used up to the point at which #sh are transferred to sea water. Fish stock is transferred
to inventory at the time of harvest. The transfer is recorded at its fair value which is deemed to be cost for the purposes of inventory
valuation.
F. PROPERT Y, PL ANT AND EQUIPMENT
Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment. Depreciation is provided on
a straight line basis over the estimated useful lives of the assets as follows:
Freehold land .......................................not depreciated
Freehold buildings ................................twenty to #fty years
Building #t out .....................................three to twenty #ve years
Leasehold improvements ......................#ve to ten years
Plant, furniture and #ttings ..................three to twenty years
Motor vehicles ......................................#ve to ten years
Sea vessels ...........................................ten to twenty years
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each #nancial year end
and adjusted prospectively if appropriate. An asset’s carrying value is written down immediately to its recoverable amount if its carrying
value is greater than its estimated recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no further future economic bene#ts are expected from
its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the di!erence between the net disposal proceeds
and the carrying amount of the asset) is included in pro#t or loss in the year the asset is derecognised.
G. LEASES
At the inception of a contract, the Group is required to assess whether a contract is, or contains, a lease. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identi#ed asset for a period in exchange for consideration.
Right of use assets
The Group recognises right of use assets at the commencement date of the lease (i.e. the date the underlying asset is available
for use). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities.
The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made
at or before the commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis over
the shorter of the lease term and the estimated useful lives of the assets.
The Group’s lease portfolio
Property leases
The Group’s real estate includes o$ce buildings and storage facilities. The Group classi#ed these o$ce spaces as operating leases under
NZIAS 17, and has recognised some storage contracts that meet the identi#able criteria as a Right of use asset and corresponding
liability portfolio under NZ IFRS 16.
Vehicle leases
The Group's lease vehicles are predominantly used by sales sta! and the transportation of personnel between operating locations. These
vehicles were classi#ed as operating leases under NZIAS 17 and are generally held for a term of 3 years. During the Covid-19 pandemic
Level 4 restrictions several lease contracts were due to expire and were renewed for an additional period of one year as replacement
negotiations were not accessible during this time.
Plant and Equipment Leases
The Group sometimes leases machinery used for the production or processing of salmon. The current leases relate to equipment being
utilised for the upwelling on sea farms and various forklifts operated throughout the company. The Group has elected to apply the
recognition exemption for short-term leases for all other machinery employed for less than 12 months duration and for leases where the
underlying asset is of low value.
Contracts not recognised under NZIAS 17
The Group has transport contracts that have not been recognised as leases under NZIAS 17 but on assessment of NZ IFRS 16 can identify
an asset to which the contract relates. These leases have been assessed as variable lease payments linked to future performance. These
contracts have an operating expense value of $1.7M in the 12 months to 30 June 2020.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
6564
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

H. INTANGIBLES
Intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible asset acquired
in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost
less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either #nite or inde#nite. Intangible assets with #nite lives are amortised over
the useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible asset with a #nite useful life is reviewed at least at each #nancial year-end.
Changes in the expected useful life or the expected pattern of consumption of future economic bene#ts embodied in the asset are
accounted for prospectively by changing the amortisation period or method, as appropriate, which is a change in accounting estimate.
The amortisation expense on intangible assets with #nite lives is recognised in pro#t or loss in the expense category consistent with the
function of the intangible asset.
Intangible assets with inde#nite useful lives are not amortised but are tested for impairment annually, either individually or at the
cash-generating unit level. The assessment of useful life is reviewed annually to determine whether the inde#nite life continues to be
supportable. If not, the change in useful life from inde#nite to de#nite is made on a prospective basis.
A summary of the policies applied to the Group’s intangible assets is as follows:
Goodwill and trade marks
Useful lives: ..........................................Inde#nite
Internally generated or acquired: ...........Acquired
Intellectual property, marine farm and hatchery licences and marina berth
Useful lives: ..........................................Finite
Amortisation method used: ..................Straight line, #ve to thirty #ve years
Internally generated or acquired: ...........Acquired
Computer Software
Useful lives: ..........................................Finite
Amortisation method used: ..................Straight line, four to seven years
Internally generated or acquired: ...........Acquired
I. RESEARCH AND DEVELOPMENT COSTS
Research costs are generally expensed as incurred. Development expenditures are capitalised as intangible assets when the Group can
demonstrate:
»Costs can be reliably measured.
»Completion of the project is technically feasible.
»Resources are available to complete the project.
»There is an intention to use the resulting asset and it will generate future economic bene#ts.
During the period of development the asset is tested for impairment annually.
J. EMPLOYEE BENEFITS
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries including non-monetary bene#ts, annual leave and accumulating sick leave expected to be settled
within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at
the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the
leave is taken and are measured at the rates paid or payable.
Long service leave
The liability for long service leave is recognised and measured at the present value of expected future payments to be made in respect
of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected
future wage and salary levels, experience of employee departures and periods of service.
De!ned contribution plans
Contributions made to a de#ned contribution plan are expensed as incurred.
K. CONTRIBUTED EQUITY
Ordinary shares
Ordinary shares are classi#ed as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity
as a deduction net of tax from the proceeds. Other capital raising costs are expensed as incurred.
L. REVENUE RECOGNITION
Revenue from contracts with customers
The Group is in the business of growing, processing and selling King Salmon to customers in New Zealand and overseas. Revenue from
contracts with customers is recognised when control of the goods is transferred to the customer at the amount that re"ects the
consideration to which the Group expects to be entitled in exchange for those goods. The Group has generally concluded that it is the
principal in its revenue arrangements because it typically controls the goods before transferring them to the customer.
NZ IFRS 15 established a #ve-step model to account for revenue arising from contracts with customers and requires that revenue be
recognised at an amount that re"ects the consideration to which an entity expects to be entitled in exchange for transferring goods or
services to a customer.
Interest income
Revenue is recognised as interest accrues using the e!ective interest method.
Insurance proceeds
Insurance proceeds are recognised in the #nancial statements when receipt is virtually certain and can be measured reliably.
M. TA XES
Income taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to
the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary di!erences at the balance sheet date between the tax bases of assets and liabilities
and their carrying amounts for #nancial reporting purposes.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that su$cient taxable pro#t will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised
deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable
that future taxable pro#t will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in pro#t or loss.
Deferred tax assets and deferred tax liabilities are o!set only if a legally enforceable right exists to set o! current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST, except when:
»The GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is
recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable.
»Receivables and payables, which are stated with the amount of GST included.
»The net amount of GST recoverable from or payable to the taxation authority is included as part of receivables or payables in the
balance sheet.
»Commitments and contingencies are disclosed net of the amount of GST recoverable from or payable to the taxation authority.
»The Group recognises uncertain tax positions as a liability where it is probable that an out"ow of resources will be required.
N. SHARE#BASED PAYMENTS
Certain employees of the Group receive remuneration in the form of share-based payments, whereby employees render services as
consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is determined by the fair value
at the date when the grant is made using an appropriate valuation model, further details of which are given in Note 25.
That cost is recognised in employee bene#ts expense, together with a corresponding increase in equity (other capital reserves), over the
period in which the service and, where applicable, the performance conditions are ful#lled (the vesting period). The cumulative expense
recognised for equity-settled transactions at each reporting date until the vesting date re"ects the extent to which the vesting period
has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the
statement of comprehensive income for the period represents the movement in cumulative expense recognised as at the beginning and
end of that period.
Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards,
but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments
that will ultimately vest. Market performance conditions are re"ected within the grant date fair value. Any other conditions attached
to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are
re"ected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance
conditions.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
6766
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions have not
been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the
market or non-vesting condition is satis#ed, provided that all other performance and/or service conditions are satis#ed.
When the terms of an equity-settled award are modi#ed, the minimum expense recognised is the grant date fair value of the
unmodi#ed award, provided the original terms of the award are met. An additional expense, measured as at the date of modi#cation, is
recognised for any modi#cation that increases the total fair value of the share-based payment transaction, or is otherwise bene#cial to
the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is
expensed immediately through pro#t or loss.
4. NEW STANDARDS ADOPTED AND STANDARDS ISSUED NOT YET ADOPTED
A. NEW STANDARDS ADOPTED
NZ IFRS 16: Leases
The Group adopted NZ IFRS 16: Leases, e!ective from 1 July 2019. The transitional approach adopted by the Group is the modi#ed
retrospective approach. Under this method, the Group has not restated comparatives therefore reclassi#cations and adjustments are
recognised in the opening balance sheet as at 1 July 2019.
The adoption of NZ IFRS 16 resulted in the following changes:
»In the Income Statement an increase in Earnings before Interest, Tax, Depreciation and Amortisation is a result of the decrease in
operating expenses which have been reclassi#ed to ‘#nance costs’ includes interest and depreciation expense associated with lease
liabilities and right of use assets.
»In the Statement of Cash Flows lease payments are now split between principal repayments classi#ed within ‘#nancing activities’
and interest repayments classi#ed within ‘operating activities'. Previously lease payments were included within payments to suppliers
within ‘operating activities’.
At inception, the Group has assessed that it is reasonably certain to exercise all renewal options available under the contracts for
property relating to o$ce space and storage facilities to the full extent allowed for under the contracts.
The practical expedient available allowing the use of hindsight in determining the lease term has been used as vehicle leases are not
customarily extended by the Group.
The weighted average incremental borrowing rate on adoption was 3.65%.
B. NEW STANDARDS NOT YET ADOPTED
Standards issued but not yet e!ective are not expected to have a material impact on the #nancial statements when they become
e!ective.
5. SEGMENT INFORMATION
Segment results
The Group has reviewed the operating segments and considers that there is only one operating segment. This is based on management’s
on going review of the business and operations and as crystallised by the pandemic Covid-19 virus. The strategy is to focus on branded,
premium priced and di!erentiated sales in all markets /channels /customers so as to maximise longer term sales and overall margins. The
Group has executed this strategy during the Covid-19 situation, resulting in product being deployed to certain other markets, channels
and customers.
For management purposes, the Group is organised into one business unit (2019: three business units based on geographical sales market
and customer channel). The operating results of the whole business are monitored for the purpose of making decisions about resource
allocation and performance assessment.
Segment performance - Refer also Note 33 for detail of disaggregation of revenue by product, brand and geographical area.
20202019
$000$000
Revenue155,344 172,609
Segment EBITDA36,074 23,063
Segment pro#t reconciles to pro#t before income tax as follows:
20202019
$000$000
Segment EBITDA36,074 23,063
Depreciation, amortisation and impairment(9,385) (6,234)
Net #nance costs(1,736) (1,092)
Group pro!t before tax24,953 15,737
Prior year comparatives have been restated to respond to the change to a single operating segment.
6. OTHER INCOME
20202019
Other income
$000$000
Grants received 97 100
Grants received - Wage subsidy3,772 -
Insurance settlements311 534
Claim received- 84
Pro#t on sale of property, plant and equipment26 10
Other income41 129
Total other income4,247 857
7. EXPENSES
20202019
Corporate and other expenses include:$000$000
Trade receivables written o!18 2
Impairment of trade receivables76 38
Research cost278 440
Loss on sale of assets 51 12
Lease rentals 1,941 1,428
Directors' fees465 414
Other directors' expenses4 12
Donations14 22
20202019
Employee bene!ts expense$000$000
Wages and salaries36,017 32,473
De#ned contribution plan expenses872 785
Restructuring costs- (38)
Other employee bene#ts expenses5,301 4,800
Outsourced labour593 1,035
Total employee bene!ts expense42,783 39,055
8. FINANCE INCOME AND COSTS
20202019
Finance income$000$000
Interest income12 96
Total !nance income12 96
20202019
Finance costs$000$000
Bank facility fees586 290
Interest on bank loans and overdrafts993 898
Interest on leases169 -
Total !nance costs1,748 1,188
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
6968
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9. INCOME TAX
20202019
Recognised in the consolidated statement of comprehensive income$000$000
Current income tax expense4,437 4,228
Deferred tax relating to origination and reversal of temporary di!erences2,512 159
Total income tax expense/(credit) in the statement of comprehensive income6,949 4,387
Tax amounts posted directly to other comprehensive income1,546 (665)
Reconciliation of tax expense to statutory income tax rate
Pro#t /(loss) before tax24,953 15,737
Income tax using the company tax rate 28%6,987 4,406
Non deductible/non assessable items49 (50)
Under provision - previous year(196) -
Prior period adjustment(51) 43
Adjustment for varying tax rates16 (36)
Other di!erences144 24
Total tax expense6,949 4,387
Statement of !nancial position deferred tax assets and liabilities20202019
Deferred tax liabilities $000$000
Accelerated depreciation for tax purposes (3,114) (3,009)
Fair value adjustment to biological assets(10,829) (9,481)
Gains on foreign currency hedges(2,807) 116
Increase accounting cost for #nished goods(1,607) (693)
Other provisions(79) -
Total deferred tax liabilities(18,436) (13,067)
Deferred tax assets
Provision for doubtful trade debtors45 19
Provision for employee bene#ts787 739
Share based payments167 167
Losses on foreign currency hedges1,791 426
Other provisions513 652
Total deferred tax assets3,303 2,003
Net deferred tax liability(15,133) (11,064)
Statement of comprehensive income deferred tax assets and liabilities20202019
Deferred tax liabilities $000$000
Accelerated depreciation for tax purposes 105 (202)
Fair value adjustment to biological assets1,348 819
Increase accounting cost for #nished goods914 (231)
Other provisions79 -
Total deferred tax liabilities2,446 386
Deferred tax assets
Provision for doubtful trade debtors(26) (4)
Provision for employee bene#ts(47) (54)
Other provisions139 (169)
Total deferred tax assets66 (227)
Deferred tax (credit)/expense2,512 159
Imputation credit account
The imputation credit account balance in the New Zealand King Salmon Company Group as at 30 June 2020 is $4,023k (2019: $8,638k).
10. COMPONENTS OF OTHER COMPREHENSIVE INCOME
20202019
Movement in reserves$000$000
Forward currency contracts
Reclassi#cation during the year to pro#t or loss(45) 13
Income tax e!ect13 (4)
Realised/unrealised net gain/(loss) during the year 5,796 (1,935)
Income tax e!ect(1,623) 542
Interest rate swaps
Realised/unrealised net gain/(loss) during the year (229) (451)
Income tax e!ect64 126
Currency translation di"erences
Translation of foreign operations154 (244)
Net movement in other comprehensive income4,130 (1,953)
11. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing the pro#t for the year attributable to shareholders of the Company by the
weighted average number of ordinary shares on issue during the year. Diluted earnings per share are calculated by dividing the pro#t
attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the year plus the
weighted average number of shares that would be issued on conversion of all dilutive potential ordinary shares into ordinary shares.
20202019
Earnings per share$000$000
Pro#t attributable to ordinary equity holders 18,004 11,350
# of Shares# of Shares
000000
Weighted average number of ordinary shares for basic and diluted earnings per share138,986 138,548
Basic earnings per share$0.13$0.08
Diluted earnings per share$0.13$0.08
12. CASH AND CASH EQUIVALENTS
20202019
Cash and cash equivalents$000$000
Cash at bank and on hand6,387 5,350
Short-term deposits728 881
Total cash and cash equivalents7,115 6,231
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
7170
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

13. TRADE AND OTHER RECEIVABLES
20202019
Trade and other receivables$000$000
Trade receivables9,921 11,868
Allowance for expected credit losses(90) (146)
Prepayments1,604 1,195
Other receivables1,342 585
Total trade and other receivables12,777 13,502
Trade receivables generally have 20-30 day terms and are recognised at their realisable value. Collectability of trade receivables is
reviewed on an ongoing basis. Impairment losses are recognised net of insurance proceeds when there is objective evidence that the
Group will not be able to collect the debt.
20202019
Ageing analysis of trade receivables$000$000
> 90 days overdue41 76
61 - 90 days overdue33 27
31 - 60 days overdue20 8
< 30 days overdue1,226 970
Not yet due8,601 10,787
Total receivables9,921 11,868
20202019
Receivables impairment movement$000$000
As at 1 July146 110
Additional provisions for impairment54 142
Receivables written o! during the year18 2
Reversal of unused amounts(128) (108)
As at 30 June90 146
14. INVENTORIES
20202019
Inventories$000$000
Raw materials9,184 11,901
Work in progress1,192 1,017
Finished goods25,236 7,912
Total inventories35,612 20,830
The closing cost of #nished goods as at 30 June 2020 includes a fair value uplift at point of harvest of $7,939k (2019: $3,428k) and an
impairment provision of $2,201k (2019: $1,261k).
20202019
Amount of inventories recognised as an expense in the statement of comprehensive income$000$000
Cost of inventories recognised as an expense144,828 172,400
Movement in net realisable value provision (increase)/decrease of inventory940 (253)
Total cost of goods sold including fair value uplift at point of harvest145,768 172,147
The cost of inventories recognised as an expense for the year ended 30 June 2020 includes a fair value uplift at point of harvest of
$54,802k (2019: $61,851k). This cost is included in cost of goods sold in the Statement of Comprehensive Income.
The cost of inventory includes #sh harvested measured at their fair value less costs to sell (“deemed cost”) at harvest date based on
management’s expected future sales pricing and mix of salmon products. At 30 June 2020, around 10% of budgeted FY21 sales volumes
are expected to be sold at returns materially below deemed cost plus further manufacturing costs. As a result, the overall deemed cost
of inventory on hand takes this into account and is therefore reduced by the impact of the lower expected FY21 sales prices.
The estimated unrealised fair value gain from cost at 30 June 2020 is decreased from the prior year end estimation due to expected
increased costs of working and selling due to Covid-19 and a change in product mix to incorporate a proportion of lower value frozen
product sales. Core sales volumes are expected to return to pre Covid-19 levels during the second half of FY21.
15. BIOLOGICAL ASSETS
The Group has three hatcheries in the South Island and nine operational marine salmon farms in the Marlborough Sounds. The #sh
livestock typically grow for up to 31 months before harvest.
Cost Fair Value GainTotal
Biological assets$000$000$000
As at 1 July 201944,370 33,862 78,232
Increase due to biological transformation %84,126 67,399 151,525
Decrease due to harvest &(63,144) (59,312) (122,456)
Decrease due to mortality '(11,648) - (11,648)
Changes in fair value (- (3,275) (3,275)
As at 30 June 202053,704 38,674 92,379
1
Biological transformation fair value is impacted by volume increases and #sh weight at reporting date relative to the target #sh harvest
weight of 4 kgs (proportional recognition).
2
Harvested fair value is included in cost of goods sold in the statement of comprehensive income and is calculated by multiplying the
current years harvest (biomass) by the prior years estimated gross margin per kg (recognised at 100%).
3
Mortality cost is expensed directly to the statement of comprehensive income in the period which it occurs and is not subject to a fair
value uplift.
4
Changes in fair value are impacted by movements in margin primarily being changes in sales price and costs to sell (#sh cost, harvest,
processing and freight to market).
Cost Fair Value GainTotal
Biological assets$000$000$000
As at 1 July 201842,667 36,787 79,454
Increase due to biological transformation85,636 57,567 143,203
Decrease due to harvest(66,468) (62,926) (129,394)
Decrease due to mortality(17,465) - (17,465)
Changes in fair value- 2,434 2,434
As at 30 June 201944,370 33,862 78,232
20202019
Fair value gain/(loss) recognised in pro!t and loss$000$000
Gain arising from growth of biological assets67,399 57,567
Movement in fair value of biological assets(3,275) 2,434
Total fair value gain on biological transformation64,124 60,001
20202019
Harvested biomasstt
Total live weight harvested for the period 8,336 9,013
20202019
Estimated closing biomasstt
Closing fresh water stocks158 100
Closing sea water stocks6,136 5,073
Total estimated closing biomass live weight as at period end6,294 5,173
Fair value measurement
Measurement of fair value is performed using a fair value model. The method of valuation therefore falls into level 3 of the fair value
hierarchy as the inputs are unobservable inputs.
The valuation of biological assets is carried out separately for each site at a brood and strategy level. Estimated actual cost up to
the date of harvest per site is used to measure the expected margin at the time the #sh is de#ned as ready for harvest, being 4.0kg
live weight. Selling price is estimated at balance date based on the most relevant future market price at expected harvest date. The
expected gross margin is recognised proportionately based on average biomass at reporting date. Fair value measurement commences
at the date of transfer to sea water as this is considered the point at which the #sh commence their grow out cycle.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
7372
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Fair value risk and sensitivity
The Group is exposed to #nancial risks relating to the production of salmon stock including increasing climate change volatility, climatic
events, disease and contamination of water space.
The Group seeks to produce and market the highest quality salmon products. Extensive monitoring and benchmarking is carried out
to provide optimum conditions and diets to maximise #sh performance during the grow out cycle. Sales are maintained in a range of
brands, products and markets to maximise returns from the quality mix of #sh harvested. The Group has insurance to cover some of the
risks relating to the livestock.
The estimated unrealised fair value gain from cost at 30 June 2020 is decreased from the prior year end estimation due to expected
increased costs of working and selling due to Covid-19 and a change in product mix to incorporate a proportion of lower value frozen
product sales. Core sales volumes are expected to return to pre Covid-19 levels during the second half of FY21. Changes in these
assumptions will impact the fair value calculation. The realised pro#t which is achieved on the sale of inventory will di!er from the
calculations of fair value of biological assets because of changes in key factors such as the #nal market destinations and product mix of
inventory sold, changes in price, foreign exchange rates, harvest weight, growth rates, mortality, cost levels and di!erences in harvested
#sh quality.
Leaving all other variables constant a 15% increase/decrease in average future sales prices would increase/decrease the fair value
of biological assets on hand and pro#t before tax by $19.4m (2019: 10% increase / decrease $10.2m) (excludes the impact of #nished
goods), while a 15% increase/decrease in future harvest volume would increase/decrease the fair value of biological assets on hand and
pro#t before tax by $5.8m (2019: 10% increase / decrease $3.3m).
A 15% increase/decrease in costs to sell would increase/decrease the fair value of biological assets on hand and pro#t before tax by
$13.6m (2019: 10% increase / decrease $6.8m). Changes in #sh health and environmental factors may a!ect the quality of harvested #sh,
which may be re"ected in realised pro#t via both achieved sales price and production costs.
16. PROPERTY, PLANT AND EQUIPMENT
Freehold
land and
buildings
Plant,
equipment
and !ttings
Vehicles and
sea vessels
Construction
in progressTotal
Cost$000$000$000$000$000
As at 1 July 20189,996 61,372 2,357 4,734 78,459
Additions- - - 14,191 14,191
Disposals- (1,352) (71) (1,423)
Transfers from WIP860 11,072 1,120 (13,052) -
As at 30 June 201910,856 71,092 3,406 5,873 91,227
Additions- - - 16,148 16,148
Disposals- (727) (79) - (806)
Transfers from WIP515 16,488 235 (17,238) -
As at 30 June 202011,371 86,853 3,562 4,783 106,569
Depreciation and impairment
As at 1 July 20181,940 31,467 1,327 - 34,734
Depreciation363 5,337 248 - 5,948
Disposals- (1,248) (54) - (1,302)
As at 30 June 20192,303 35,556 1,521 - 39,380
Depreciation405 6,757 279 - 7,441
Disposals(681) (52) - (733)
As at 30 June 20202,708 41,632 1,748 - 46,088
Net Book Value
As at 30 June 20198,553 35,536 1,885 5,873 51,847
As at 30 June 20208,663 45,221 1,814 4,783 60,481
Property, Plant and Equipment is stated at historical cost less depreciation and any impairment adjustments. Historical cost includes
expenditure that is directly attributable to the acquisition of Property, Plant and Equipment. Asset residual values and useful lives are
reviewed, and adjusted if appropriate, at each balance day or whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. New Zealand King Salmon has considered the e!ects Covid-19 may have on the carrying value of its
specialised assets, and has concluded there is no evidence of technical or functional obsolescence which would impact the carrying value
of its assets in use.
Borrowing costs
There were no borrowing costs capitalised in 2020 (2019: $nil).
17. INTANGIBLES
Development
in progressTrademarks
Farm and
hatchery
licensesSoftwareGoodwillTotal
Cost$000$000$000$000$000$000
As at 1 July 2018830 242 4,572 2,645 39,255 47,544
Additions2,680 - 12 -- 2,692
Disposals- - - (219) - (219)
Transfers from WIP(17) - - 17 - -
As at 1 July 20193,493 242 4,584 2,443 39,255 50,017
Additions1,643 - - - - 1,643
Disposals - - (289) - - (289)
Transfers from WIP(2,394) - - 2,394 - -
As at 30 June 20202,742 242 4,295 4,837 39,255 51,371
Depreciation and impairment
As at 1 July 2018- 200 830 2,144 - 3,174
Amortisation- - 168 118 - 286
Disposals- - - (220) - (220)
As at 30 June 2019- 200 998 2,042 - 3,240
Amortisation--168 341 - 509
Disposals- - (287) -- (287)
As at 30 June 2020- 200 879 2,383 - 3,462
Net Book Value
As at 1 July 20193,493 42 3,586 401 39,255 46,777
As at 30 June 20202,742 42 3,416 2,454 39,255 47,909
Goodwill
Goodwill resulted from the acquisition of The New Zealand King Salmon Co Limited and is subject to annual impairment testing. The
Group performs an annual impairment test in June each year. The Group considers the relationship between its market capitalisation
and its book value, among other indicators, when reviewing for indicators of impairment.
The goodwill is allocated to the New Zealand King Salmon Company's one cash generating unit. Refer to note 5 for reassessment of
operating segments. The recoverable amount of the cash generating unit has been determined based on a value in use calculation using
future estimated cash "ows, capital expenditure and changes in working capital over a #ve year period, plus an estimated terminal
value. The terminal value calculation assumes sea farm consents expiring in 2021 and 2024 will be renewed on reasonable commercial
terms to enable water space to continue to be utilised. The forecasts were based on actual results and expected future use of water
space licences currently held, before fair value adjustments to biological assets. The growth rate used to estimate the cash "ows of
the unit beyond the #ve-year period is 0.83% p.a. (2019: 1.72% p.a.). A discount rate of 6.01% p.a. (2019: 7.61% p.a.) has been applied
to discount future estimated cash "ows to their present value. The net present value of these future estimated cash "ows exceeds the
carrying amount of the CGU, therefore the Group has concluded that there is no impairment to the goodwill.
The calculation of value in use is most sensitive to changes in sales prices, exchange rates, sales volumes and #sh performance.
Reasonably probable changes in the assumptions used would not cause the carrying value of goodwill to exceed the recoverable amount
for the cash generating unit.
Trademarks
Trademarks are externally acquired and are carried at cost less impairment. They have inde#nite useful lives and are assessed annually
for impairment. No impairment has been recognised during the period (2019: nil).
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
7574
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

18. RIGHT#OF#USE ASSETS
Land and
Buildings
Motor
Vehicles
Plant and
EquipmentTotal
$000$000$000$000
Asset recognition on transition at 01 July 20193,617 380 449 4,446
Additions- 199 1,105 1,304
Remeasurement268 - - 268
Depreciation for the period(752) (225) (460) (1,437)
Carrying amount 30 June 2020 3,133 354 1,094 4,581
Cost 3,885 579 1,554 6,018
Accumulated Depreciation(752) (225) (460) (1,437)
Carrying amount 30 June 2020 3,133 354 1,094 4,581
19. LEASE LIABILITIES
Land and
Buildings
Motor
Vehicles
Plant and
EquipmentTotal
$000$000$000$000
Liability recognition on transition at 01 July 20193,617 380 449 4,446
Additions-199 1,105 1,304
Remeasurement268 - - 268
Interest for the period127 13 30 170
Lease payments made(698) (213) (502) (1,413)
Lease liabilities 30 June 2020 3,187 366 1,052 4,605
Short term leases
The Group recognised $974k of payments for short term lease equipment in the 12 months to 30 June 2020.
Low value leases
The Group does hold lease commitments for equipment that meets the de#nition under NZ IFRS 16 – Low value leases.
20. LEASE LIABILITIES CURRENT/NON#CURRENT
20202019
$000$000
Current1,347 -
Non-current3,258 -
Total 4,605 -
21. INTEREST BEARING LOANS AND BORROWINGS
20202019
Current interest bearing loans and borrowings$000$000
Secured bank loans97 -
Other borrowings1,035 416
Total current interest bearing loans and borrowings1,132 416
Non-current interest bearing loans and borrowings
Secured bank loans37,000 15,000
Total non-current interest bearing loans and borrowings37,000 15,000
The Company has facilities with BNZ for $60m, secured by a general security deed over the assets of the Group. The expiry date of facility
A of $20m is 18 October 2021, facility B of $20m expires on 18 October 2023, and facility C of $20m expires on 18 October 2024. At balance
date $20m of facility A was drawn and $17m of facility B was drawn (June 2019: $15m). Subsequent to balance date, the #nancial covenants
relating to interest coverage and leverage ratios have been amended for the FY21 year and facility A extended to 18 October 2022.
22. TRADE AND OTHER PAYABLES
20202019
$000$000
Trade payables12,969 10,294
Other payables1,878 6,205
Total trade and other payables14,847 16,499
23. EMPLOYEE BENEFITS
20202019
Current employee bene!ts$000$000
Bonuses171 85
Employee annual and sick leave bene#ts 2,453 2,264
Long service leave260 80
Total current employee bene!ts2,884 2,429
Non-current employee bene!ts
Long service leave558 566
Total non-current employee bene!ts558 566
Long service leave
Long service leave provisions are calculated based on the expected future payments to employees, discounted to their net present value.
24. COMMITMENTS AND CONTINGENCIES
Capital commitments
The Group has entered into agreements to purchase plant and equipment. As at 30 June 2020 the total commitment is $2,598k (2019:
$3,265k).
Contingencies
The Group has a contingent liability of $784k in respect of a #sh transport contract requiring the Group to purchase three bulk tankers
(including modi#cations made in 2018), should the #sh transport contract be terminated early (2019: $809k).
Guarantees
The Group has three guarantee facilities totalling $115k (2019: $115k).
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
7776
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25. FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of #nancial risks: market risk, credit risk and liquidity risk. The Group uses derivative #nancial
instruments to hedge certain risk exposures. Financial risk management is the responsibility of the Chief Financial O$cer in accordance
with the Treasury Policy approved by the Board of Directors. In addition, the Group has a Treasury Committee, a sub-committee of the
Board's Audit and Finance Committee that oversees #nancial risk management.
Market risk
Market risk is the risk that the fair value of future cash "ows of a #nancial instrument will "uctuate because of changes in market prices.
This comprises of two key types of risks; currency and interest rate risk.
Currency risk
The Group has exposure to foreign exchange risk as a result of transactions denominated in foreign currency, arising primarily from
normal trading activities, but also from the net investment in the foreign subsidiary.
The Group manages its foreign currency risk by hedging its future exposure in respect of its import purchases and its export sales, over a
maximum of #ve years, when exposures are considered highly probable. The Group hedges this exposure with the use of forward foreign
exchange contracts and options. NZKS have a policy of hedging foreign exchange exposures within a range of hedging limits broadly
summarised as follows: Up to two years – 15% to 100%, two to #ve years – 0% to 50%. The notional contract amounts of forward foreign
exchange contracts and options outstanding at balance date were $87.5m on the import side (2019: $54m) and $283m on the export
side (2019: $151.9m), for delivery over the next #ve #nancial years, in line with anticipated payment dates.
The Group imports feed from Chile and Australia, purchases of which are in United States and Australian dollars respectively. The Group
exports salmon to many countries, the major ones being Australia, Japan and the United States. Sales are denominated in Australian
dollars (AUD), Japanese yen (JPY) and United States dollars (USD) respectively. In order to protect against exchange rate movements
and to manage the inventory costing process, the Group has entered into forward exchange contracts and options to hedge the net
exposure to AUD, JPY and USD respectively.
The cash "ows are expected to occur up to 60 months from 1 July 2020. The pro#t or loss within cost of sales will be a!ected as sales are
made.
Foreign exchange forward contracts are designated as hedging instruments in cash "ow hedges of highly probable forecast sales in USD,
AUD and JPY and forecast purchases in USD, and AUD. We have hedged 50-55% of the net exposure of these forecast transactions. The
foreign exchange forward contract balances vary with the level of expected foreign currency sales and purchases and changes in foreign
exchange forward rates.
There is an economic relationship between the hedged items and the hedging instruments as the terms of the foreign exchange and
commodity forward contracts match the terms of the expected highly probable forecast transactions (i.e., notional amount and
expected payment date). The Group has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the foreign
exchange and commodity forward contracts are identical to the hedged risk components. To test the hedge e!ectiveness, the Group
uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments against the changes in
fair value of the hedged items attributable to the hedged risks.
The hedge ine!ectiveness can arise from:
»Di!erences in the timing of the cash "ows of the hedged items and the hedging instruments
»Di!erent indexes (and accordingly di!erent curves) linked to the hedged risk of the hedged items and hedging instruments
»The counterparties' credit risk di!erently impacting the fair value movements of the hedging instruments and hedged items
»Changes to the forecasted amount of cash "ows of hedged items and hedging instruments
The NZ dollar equivalent of unhedged currency risk on assets at balance date is $474k (2019: $143k) whilst the NZ dollar equivalent of
unhedged currency risk on liabilities at balance date is $133k (2019: $83k).
Currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in AUD, USD and JPY exchange rates. The impact on the
Group's pre-tax pro#t is the result of a change in fair value of monetary assets and liabilities. The impact on the Group's equity is due to
changes in the fair value of forward exchange contracts and options designated as cash "ow hedges.
Change inEquityPro!t
AUD rate$000$000
2020+5%(2,652) (257)
-5%6,251 284
2019+5%(2,483) 14
-5%2,745 (15)
Change inEquityPro!t
USD rate$000$000
2020+5%13,245 328
-5%(7,031) (362)
2019+5%4,148 (330)
-5%(4,561) 365
Change inEquityPro!t
JPY rate$000$000
2020+5%2,775 14
-5%(262) (15)
2019+5%1,176 (30)
-5%(1,275) 33
Interest rate risk
The Group has exposure to interest rate risk that arises mainly due to the Group's long term debt obligations with "oating interest rates.
Interest earned on call deposits are based on the current interest rate. Interest rate swaps are used to manage interest rate risk, current
swap cover out to 2024. The amount of company borrowing covered using swaps at balance date was $10m (2019: $10m).
NZKS have a policy of #xing interest rates within a range of 50% to 100% of the exposure. Forward starting swaps have been used to
further extend maturities out to 2024 ($6m). The #xed interest rates for the existing swaps range between 4.3% and 5.01% (2019: 4.3%
and 5.01%) and the "oating rate of 1.58% is aligned to the "oating quarterly bank bill rate. The loss on interest rate swaps at balance
date was $1,847k (2019: $1,608k ), which has been taken to reserves.
Interest rate sensitivity
The following table demonstrates the sensitivity of the fair value of the interest rate swaps to a reasonably possible change in interest
rates:
20202019
$000$000
Impact of an increase of 50 basis points224 263
Impact of a decrease of 50 basis points(230) (271)
Credit risk
Credit risk is the risk of #nancial loss that arises if a counterparty to a #nancial instrument does not meet its contractual obligations.
Financial instruments which potentially subject the Group to credit risk principally consist of bank balances, trade receivables, derivative
#nancial instruments and #nancial guarantees.
Customer credit risk is managed centrally subject to the Group’s established policy, procedures and control relating to customer credit
risk management. Credit quality of a customer is assessed based on an extensive external credit rating scorecard and individual credit
limits are de#ned in accordance with this assessment. Outstanding customer receivables and contract assets are regularly monitored
and any shipments to major customers are generally covered by trade credit insurance.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
7978
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

An impairment analysis is performed at each reporting date using the accounts receivable aging report to measure expected credit
losses. The impairment analysis is based on days past due for all customers with coverage by trade credit insurance. The calculation
re"ects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at
the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are
written-o! if past due for more than one year and are not subject to enforcement activity.
Financial instruments are only entered into with banks that have in place an executed International Swaps and Derivatives Association
(ISDA) Master Agreement with the Group.
Maximum exposures to credit risk as at balance date are:
20202019
$000$000
Cash and short term deposits7,115 6,231
Trade and other receivables12,777 13,502
Derivative #nancial assets /(liabilities)3,603 (2,058)
The above maximum exposures are net of any recognised provision for losses. No collateral is held on the above amounts.
Concentrations of credit risk
Bank balances are maintained with several banks but mainly with Bank of New Zealand. There is a wide spread of debtors, in terms
of size and geographical location within New Zealand and overseas. Concentration of credit risk in trade receivables is not considered
signi#cant as the Group's customers operate in di!erent market channels and geographic areas.
Liquidity risk
The Group performs cash "ow forecasting activities on a daily basis to ensure it has su$cient cash to meet operational needs and
monitors performance against bank covenants on a monthly basis. Surplus cash is invested in short-term or money market deposits.
Undrawn committed facilities and/or liquid assets are maintained at all times at an amount su$cient to cover the forecast cash
payments to employees, suppliers, tax authorities and banking institutions as they fall due.
The following table analyses the contractual and expected cash "ows for all #nancial liabilities:
Less than
one year
Between
one and
two years
Between
two and
!ve years
As at 30 June 2020$000$000$000
Bank loans834 36,263 -
Credit card facilities350 - -
Lease liabilities1,347 1,385 1,873
Trade and other payables14,847 - -
Financial guarantee contracts115 - -
Total non-derivative liabilities17,493 37,648 1,873
Forward foreign currency exchange contracts 83,311 81,869 135,606
Forward foreign currency options 36,576 20,219 13,037
Interest swaps 224 253 495
Total derivative liabilities120,111 102,341 149,138
As at 30 June 2019
Bank loans438 14,562 -
Lease liabilities- - -
Credit card facilities300 - -
Trade and other payables16,499 - -
Financial guarantee contracts115 - -
Total non-derivative liabilities17,352 14,562 -
Forward foreign currency exchange contracts43,467 59,325 41,486
Forward foreign currency options13,105 16,144 39,887
Interest swaps583 658 726
Total derivative liabilities57,155 76,127 82,099
26. FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of cash and short term deposits, trade receivables, trade payables and other current liabilities is considered a
reasonable approximation to their fair value due to the short term maturities of these instruments.
The carrying value of the BNZ loan drawing of $37M is considered a reasonable approximation of its fair value due to the short term
maturities of the drawings. The Group has the discretion to roll these short term drawings out within facility A ($20m) to 18 Oct 2021,
and within facility B ($17m) to 18 Oct 2023.
The following #nancial instruments of the Group are carried at fair value:
20202019
Current derivative !nancial assets$000$000
Forward exchange contracts599 224
Foreign exchange options309 270
Total Current derivative !nancial assets907 494
Non-current derivative !nancial assets
Forward exchange contracts8,360 708
Foreign exchange options759 1,001
Total Non-current derivative !nancial assets9,120 1,709
Current derivative !nancial liabilities
Forward exchange contracts1,684 1,043
Foreign exchange options435 110
Interest rate swaps1,749 938
Total Current derivative !nancial liabilities3,868 2,091
Non-current derivative !nancial liabilities
Forward exchange contracts1,642 667
Foreign exchange options883 797
Interest rate swaps-582
Total non-current derivative !nancial liabilities2,525 2,046
Valuation methods
Financial instruments have been categorised into the following hierarchy and valued according to the following de#nitions, based on the
lowest level input that is signi#cant to the fair value measurement as a whole:
Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (i.e. as prices)
or indirectly (i.e. derived from prices).
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
All derivative #nancial instruments for which a fair value is recognised have been categorised within level 2 of the fair value hierarchy.
Industry experts have provided the fair values for all derivatives based on an industry standard model. There were no transfers between
Level 1 and Level 2 during the year ended 30 June 2020.
27. CAPITAL MANAGEMENT
Group capital
The capital of the Group consists of share capital, reserves and retained earnings. The Group's objectives when managing capital are to
safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders, bene#ts for shareholders and to
maintain an optimal capital structure to reduce the cost of capital.
In addition to this the Group aims to ensure that it meets #nancial covenants attached to the interest bearing loans and borrowings
that de#ne capital structure requirements. There have been no breaches in the #nancial covenants of any interest-bearing loans and
borrowings in the current period.
In order to maintain or adjust the capital structure the Group may adjust dividends paid to shareholders, return capital to shareholders,
issue new shares or sell assets to reduce debt.
STRONGER TOGETHERNEW ZEALAND KING SALMON ! ANNUAL REPORT FY20
8180
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS