NZK – 2020 Annual Shareholders’ Meeting materials

Annual Shareholders’ Meeting
3 November 2020
NEW ZEALAND KING SALMON – 2020 ANNUAL SHAREHOLDERS’ MEETING
The attached presentation will be given at New Zealand King Salmon Investments Limited’s Annual
Shareholders’ Meeting starting at 2:00 pm today being hosted virtually on the Lumi platform.
• 2020 New Zealand King Salmon Investments Limited Annual Shareholders’ Meeting – Chair and
Managing Director’s Address
• 2020 New Zealand King Salmon Investments Limited Annual Shareholders’ Meeting –
Presentation

ENDS

Contacts
Grant Rosewarne, Managing Director and CEO, New Zealand King Salmon Investments Ltd
email: grant.rosewarne@kingsalmon.co.nz

About New Zealand King Salmon
New Zealand King Salmon is the world’s largest aquaculture producer of the premium King salmon
species. We operate under our four key brands: Ōra King, Regal, Southern Ocean, and Omega Plus, as
well as the New Zealand King Salmon label. We have been growing and selling salmon to consumers for
more than 30 years. Today we employ around 550 people. New Zealand investors make up a significant
percentage of the ownership of NZ King Salmon and the communities of Marlborough, Nelson Bays and
Tasman are well represented with nearly 400 of the 3000 shareholders from top of the South. More
information can be found at www.kingsalmon.co.nz

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Annual Shareholders’ Meeting
3 November 2020
Address by the Chair: John Ryder
[SLIDE 2: AGENDA]
My name is John Ryder. I’m Chairman of New Zealand King Salmon and it’s my pleasure to welcome you
all to our 2020 annual shareholders’ meeting.
Today’s meeting is being held online via the Lumi platform. This allows Shareholders, Proxies and Guests
to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition,
shareholders and proxies have the ability to ask questions and submit votes online during this meeting.
We decided to have this year’s meeting online in order to provide certainty around planning for the
meeting (this was at a time when Auckland was in Level 3 lockdown), but also to enable as many
shareholders as possible to participate. Many of us have become accustomed to online discussions and
meetings this year! We do also hope to provide an opportunity for investors to visit one of our sites in
the first half of 2021.

[SLIDE 3: QUESTIONS]
Questions can be submitted at any time. To ask a question press on the speech bubble icon. This will
open a new screen. At the bottom of that screen there is a section for you to type your question. Once
you have finished typing please hit the arrow symbol to send.
Please note that while you can submit questions from now on, I will address them later in the meeting
whilst we are discussing the resolutions, and allowing time for shareholders to vote. Please also note
that your questions may be moderated or if we receive multiple questions on one topic, amalgamated
together, but we will endeavour to answer all questions. Finally, if we run out of time to answer all your
questions we will answer after the meeting via email or posting responses on our website.

[SLIDE 4: VOTING]
Voting today will be conducted by way of a poll on all items of business. In order to provide you with
enough time to vote, I will shortly open voting for all resolutions.
At that time, if you are eligible to vote at this meeting, a new polling icon will appear. Selecting this icon
will bring up a list of resolutions and present you with voting options. To cast your vote simply select one
of the options. There is no need to hit a submit or enter button as the vote is automatically recorded.
You do however have the ability to change your vote, up until the time I declare voting closed.
I now declare voting open on all items of business. The polling icon will soon appear, please submit your
votes at any time. I will give you a warning before I move to close voting.
I am pleased to confirm that we have a quorum and therefore declare the 2020 Annual Shareholders’
Meeting of New Zealand King Salmon Investments Limited open.

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The items of business for this meeting and the resolutions to be considered by shareholders are contained
in the Notice of Meeting which was sent to shareholders on the 2nd of October.
The order of proceedings today is that I will briefly comment on the highlights of the last 12 months
followed by an address by Grant Rosewarne, our CEO and Managing Director. We will then attend to the
resolutions. While voting is taking place there will be an opportunity for you to ask questions. We will
conclude with an opportunity for you to raise any matters of a general nature.
In terms of the formal business, we will cover each resolution in turn and invite questions specific to
those items. It will then be time to vote on the resolutions. I will outline the process for the discussion
and voting on the resolutions at that point in the agenda.
I would like to introduce my fellow Directors – they are:
• Grant Rosewarne, CEO and Managing Director;
• Tomakin Lai, a Non-Executive Director;
• Catriona Macleod, an Independent Non-Executive Director,
• Jack Porus, a Non-Executive Director;
• Paul Steere, an Independent Non-Executive Director; and
• Chiong Yong Tiong, a Non-Executive Director.
I would also like to note that members of New Zealand King Salmon’s management and staff are in
attendance as well as our external auditors, Ernst & Young.

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[SLIDE 5: CHAIRMAN’S REVIEW]
During the FY20 financial year recently completed the company delivered a strong result considering the
huge impact Covid-19 had on businesses in New Zealand and around the world.
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 diversified 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 world’s most premium salmon company. We have made
very positive progress this year both in improving our existing production model and also 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.
I would like to acknowledge the efforts of the whole team at New Zealand King Salmon in continuing to
deliver strong results for the company - there have been unpredecented challenges this year but the
team has dealt with them capably and with enthusiasm.
In accordance with the Company’s constitution I have signed the minutes of the 2019 Annual
Shareholders’ Meeting, and these are available on request.
I’ll now invite Grant Rosewarne to address you. At the conclusion of Grant’s presentation we will move
to the formal business of the meeting. While voting is taking place you will have further opportunity to
ask questions and we will respond to questions raised during this online meeting.

Address by the Managing Director: Grant Rosewarne
[SLIDE 6: MANAGING DIRECTOR’S REVIEW]
Thank you John. Good afternoon ladies & gentlemen – I am going to take you through:
• The highlights for the last financial year, FY20, and also update you on our efforts around
• Sustainability
• Our business update
• Outlook for the coming year; and
• The future of salmon farming in New Zealand.

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[SLIDE 8: FINANCIAL HIGHLIGHTS]
The Financial highlights for FY20 include:
• Revenue of $155 million was down 10% on FY19 although we estimate that without COVID-19 we
could have achieved $200 million of revenue for the first time.
• Achievement of strong pricing with average selling price of $24.54/kg, up 7% on FY19.
• Solid Pro Forma Operating EBITDA of $25.1m, in line with FY19 and within the FY20 earnings guidance
range of $25.0m – 28.5m.
• We were a recipient of the COVID-19 wage subsidy and this helped New Zealand King Salmon to
preserve all jobs.
• GAAP net profit after tax of 18 million was up 59% on FY19 due to an increase in biomass and average
fish size, as well as a slower harvest due to COVID-19. In common with other biological businesses,
the international accounting standards require us to book a proportion of the expected profit for fish
still growing in seawater as if they have been sold (which, of course, they have not).

[SLIDE 9: FACTS AND FIGURES]
In this slide you can see our harvest for the FY20 year was 7,336 tonnes. We have a good geographic
spread, operating in about 20 countries but New Zealand and the USA are centrally important. The two
charts on the right show our pro forma and GAAP EBITDA development, the latter, as I explained, being
affected by the requirement to reflect some of the expected profit from our unsold fish still growing in
our seafarms.

[SLIDE 10: FACTS AND FIGURES (continued)]
New Zealand King Salmon has three hatcheries in the South Island , 9 seafarms in the Marlborough
Sounds and three factories in Nelson:
1. a primary production / value added fresh plant
2. a cold smoking plant
3. and, a hot smoking facility

We are well represented with local top of the south shareholders, our lost time injury frequency rate
decreased significantly on the prior year to 13.7, we had 560 near miss accidents reported, and we
consider a high number to be a good thing, because it helps prevent actual accidents.
We collected 239kg of waste in beach clean-ups (and none of this was of our own making).
We remain rated green (“best choice”) by Monterey Bay Aquarium’s Seafood Watch programme, one of
the few in the world to be so, and, we have committed to ensuring 100% reusable, recyclable or
compostable packaging by 2025.

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[SLIDE 11: VISION, PURPOSE, MISSION AND VALUES]
Now turning our attention to our Vision, Purpose, Mission and Values - NZKS’ Vision is to be the top of
the South’s most valued organization and the world’s most inspirational salmon company!
Our purpose is about Creating the Ultimate Salmon Experience, and our team is passionate about
delivering this every day!
Our Mission is that all stakeholders who come in contact with New Zealand King Salmon should be better
off as a result!
Our Values are to maximize value for all stakeholders, New Zealand King Salmon should be Better Every
Day (that’s about continuous improvement), we should act with Integrity, we are a teamwork and team-
based culture producing High-quality products with a high level of Innovation.
Strategies
We have eight strategies to help us achieve our Vision, Purpose and Mission and they are:
1. Health, Safety and Food Safety is our number one job
2. We are laser focused in Aquaculture Only Farming One Species: that being King Salmon
3. Want to Dominate the Premium Salmon Market Niches Around the World
4. We should be 100% Branded
5. We want our people to be highly Engaged with their job and their company
6. NZKS to be a vital part of the Communities in which we operate (Top of the South)
7. Operate Sustainably
8. We are Cost Efficient

[SLIDE 13: OUR COMMUNITY]
As part of our Community and Sustainability strategies, we have a range of initiatives that we support
across the Top of the South Island of New Zealand. Everything from supporting the local Marlborough
Girls College with laptops, through to supporting youth sport, conservation projects such monitoring and
research into the King Shag, the rebuild of the Queen Charlotte Yacht Club, sponsorship of the Kaipupu
Wildlife Sanctuary and support for the Picton Maritime Festival etc.

[SLIDE 14: ACCREDITATIONS / ENDORSEMENTS]
New Zealand King Salmon has a high level of accreditations, certifications and endorsements. I
mentioned Monterey Bay earlier, which runs the Seafood Watch programme, which is probably the most
widely recognised of all our certifications. We have also achieved four-star Best Aquaculture Practice
status with the Global Aquaculture Alliance as well as a number of other programs.

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[SLIDE 15: ADDRESSING CLIMATE]
New Zealand King Salmon is acutely affected by climate change, most notably in the Pelorus Sound.
Therefore, we tend to be at the forefront of things such as life cycle analysis and we have recently
undertaken a life cycle analysis study and found that many of our emissions are post our farm gate. A
60/40 split, with the important drivers being airfreight and feed composition. This will guide our
improvement efforts.
Salmon are amongst the lowest emissions for animal protein production due to being cold blooded and
not having to support themselves against gravity.

[SLIDE 16: FISH HEALTH AND WELFARE]
To give a fish the best chance to reach their potential, New Zealand King Salmon follows two key
management plans – a biosecurity management plan and our fish health management plan for control
of pest and disease and to allow a rapid response.

[SLIDE 17: CONSENTING - VIDEO]
We have had some Resource Consent issues with the Marlborough District Council recently. This has
mainly arisen because:
1. A bacteria mat was reported at two sites. Our science provider Cawthron has repeatedly
explained that is not a good indicator of benthic health.
2. Forsyth Bay was deemed significantly non-compliant and once we knew the result we took
immediate remedial action. Further testing has been done and we believe all our farms are now
compliant.
The evidence of this is in this video - look at the health condition of our Te Pangu seafloor – one of the
farms that was deemed not compliant. The floor is covered in Brittle Stars and there is even a seahorse,
one of the most delicate animals in the Sound, swimming under the farm. Working with council and
Cawthron we are making an application to change some consent conditions to simplify the consent
process and ensure we are compliant in the future. I would like to emphasise we take our environmental
responsibilities very seriously.

[SLIDE 19: SENIOR LEADERSHIP TEAM]
We are delighted to have appointed a General Manager of Aquaculture who really has developed through
our business as well as spending time elsewhere and returning to NZKS. Mr. Grant Lovell has 20 years
plus experience farming our species and we hope to soon appoint a new General Manager of Processing.

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[SLIDE 20: AQUACULTURE MODEL EVOLVING]
Grant Lovell is continuing to evolve our aquaculture model utilising upwelling, improving net cleaning
cycles, reducing handling of stock and mitigating the exposure of large fish to high summer water
temperatures. We believe these initiatives give our fish the best chance of surviving summer conditions.
By the way, survival rates in the wild are around 2% to 3%. In our farming situation we often achieve
about 80% and we hope to lift this closer to 95% over time.

[SLIDE 21: COVID-19 OUR RESPONSE]
We are particularly pleased with the way that our team responded to the COVID-19 situation. We were
identified as an essential business, being a food supplier and a farmer. Our strong brands and diversified
markets have really assisted us as has our solid balance sheet. During the initial weeks of COVID-19 we
certainly saw a rapid decline in sales, decreasing by about 60% during the worst week. We’ve now
climbed up to being about 15% less than we would have currently hoped to be without COVID-19. Our
production team has shown amazing resilience and our sales team excellent teamwork, together with
many customers showing fantastic dynamism in pivoting business towards new opportunities

[SLIDE 22: THE IMPACT OF COVID-19]
The following chart shows our monthly results and in light blue shows the impact on sales compared to
our forecast. We were tracking well prior to COVID-19; since then our North American and Australian
markets have been particularly strong with Asia and New Zealand taking a little longer to recover - the
latter being affected by the second Auckland lock down.

[SLIDE 23: STRONG BRANDS AND PARTNERSHIPS]
The strength of our brands has certainly helped us, and resilience in the face of COVID-19 as I mentioned,
we continue to enjoy support from chefs around the world – for example here chef Massimo Bottura
who has won awards for some of the leading restaurants in the world. He had some conversations with
our Prime Minister on social media about NZ produce. We have switched some of our sales to online and
we did this with a number of partners – Wulf’s Fish being an example.

[SLIDE 24: ŌRA KING]
Our Ōra King brand is positioned on being a unique breed for culinary excellence. We have grown our
Instagram following by an impressive 30% this year. During the COVID-19 crisis we donated salmon to
out-of-work food-service workers and also to healthcare workers and others in need. In the USA due to
extensive restaurant closures we pivoted our business towards take away and home delivery, and
through fresh fishmongers. In fact, our US business has now recovered to a similar level to pre-COVID-19
albeit with a different composition.

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[SLIDE 25: DIVERSIFICATION BUILDS RESILIENCE]
One of our strategies is to build resilience through market diversification and our Omega Plus brand is
growing quickly in China and to lesser extent, New Zealand. We will soon launch into the USA.
Atlantic salmon is now becoming established under our Regal Epicurean brand.
We estimate in the year coming, the revenue from sources other than King Salmon will be in the range
of 5%.

[SLIDE 26: CAPITAL EXPENDITURE – KEY PROJECTS FY20]
We have curtailed our capital expenditure by about half as a result of the COVID-19 crisis, however we
have completed some major initiatives being a new barge (the Thomas Song) moored at our Waitata
Farm and we are most of the way through completing a Tentburn Hatchery incubation and first feeding
facility.

[SLIDE 28: OUTLOOK]
Looking ahead, a number of aspects of our business are tracking along as previously advised. We expect
our harvest for FY21 and FY22 to be around 8,500 tonnes, and we intend to use frozen carryover stock to
bolster our FY22 result using Smoked products to provide sales and value growth. We expect capital
expenditure in FY21 to be around $10m, largely in line with depreciation, and as previously advised we
will review the payment of dividends next year.
COVID-19 is still likely to provide further uncertainty and challenges, however we are positively surprised
by the recovery of our core premium priced, branded products which are now selling at around pre
COVID-19 levels.
In slowing our harvest and with the lost sales during lockdown, we have much higher levels of frozen
inventory and fish in the water. Sale of surplus product is taking longer to initiate than we’d hoped but
we can afford to be patient in this regard, as we have the funding facilities in place to cover this.
We are very pleased with the start to this financial year, however due to COVID-19 and the usual
uncertainty around the upcoming summer we are not in a position to provide profit guidance other than
to repeat our earlier view that we think it may be challenging for this year’s pro forma EBITDA to exceed
FY20 – we have additional storage and air freight costs as a result of COVID-19. In FY22 and beyond, we
remain very positive about our prospects – our King Salmon species remains scarce and aspirational, and
our branding initiatives continue to be effective in the current environment.
Finally, regarding waterspace, we remain hopeful of progress on both the Blue Endeavour open ocean
resource consent, as well as the relocation process which currently sits with the Minister for Primary
Industries.

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[SLIDE 29: BALANCE DATE CHANGE]
Those of you who follow our results announcements would have noted that summer is a challenging time
for fish performance and survival, particularly on our lower flow inshore sea farm sites.
To provide greater certainty of earnings, our Board has resolved to change our balance date to 31
January, so that the peak summer fish performance period is at the start of each new financial year, with
guidance then able to be more easily provided once that period is completed.
We will make this change this coming January 2021, with our half year results to 31 December 2020 being
followed by full period results for the 7 months to 31 January 2021.

[SLIDE 31: FUTURE FARMING - RELOCATION]
For 5 years we have had an initiative, the so-called Farm Relocation, to move our low flow farms to high
flow sites for improved environmental, social, fish health and economic outcomes. Based on the
disappointing outcome of the 2017 hearing, we would not achieve any material increase in production
capacity, however, it could result in a modest fish performance improvement.
A revised proposal from Iwi and NZKS was provided to MPI in June 2019, including the development of
the proposed site at Mid-Waitata. Any potential production benefit from the Relocation would be
achieved in FY24 or beyond due to the protracted approval process and production cycles.

[SLIDE 32: FUTURE FARMING]
Many of you would have heard of our Blue Endeavour application which is New Zealand‘s first open-
ocean salmon farm application. This application is completely in line with the Government’s Aquaculture
Strategy launched in September 2019 intended to grow the revenue of Aquaculture from $620m to $3b
by 2035. Blue Endeavour is by far our most strategic and important initiative at New Zealand King
Salmon.

[SLIDE 33: WHAT ARE WE DOING]
You can see in this slide Blue Endeavour is in the open waters of Cook Strait. Compared to our sheltered
farms it has a long fetch to the North but is protected from the south, west and east. Water space
initiatives remain key to our volume, fish health and survival rates and increasing our sales unit value
through further differentiation.

[SLIDE 34: FUTURE FARMING – OPEN OCEAN
We are hopeful of a decision for our Blue Endeavour open ocean resource consent application within
FY21. Blue Endeavour is in two phases, each capable of producing 5,000 tonnes per annum. The earliest
possible open ocean harvest would be the fourth quarter of the 2023 calendar year. As previously

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advised, the capital cost for infrastructure at Blue Endeavour would be about $35 million with a similar
amount required for working capital.



Address by the Chair: John Ryder
[SLIDE 35: ORDINARY AND SPECIAL RESOLUTIONS]
Thank you Grant.
We will now move to the business of the meeting and the procedure for this part of the meeting. We
have a number of ordinary resolutions to be considered at this meeting. The resolutions are required to
be passed by a simple majority of votes.
The resolutions that we will be voting on today are as follows:
• Resolution 1: Authorisation for the Directors to fix the auditor’s remuneration for the coming
year.
• Resolution 2: Election of Catriona Macleod as a Director.
• Resolution 3: Re-election of Jack Porus as a Director.
• Resolution 4: Re-election of Paul Steere as a Director.
Current best practice for Shareholder voting is by way of poll. Accordingly, in my capacity as Chair I
require that a poll be held for each of the resolutions.
Shareholders who are entitled to vote and proxies who have discretion as to how they vote have received
a Voting / Proxy Form when they registered. If you completed a postal or online vote prior to the meeting,
you do not need to complete another Voting / Proxy form.
Voting will take place electronically so I will invite you to vote at any time now.
I and my co-directors hold undirected proxies:
• With respect to Resolution 1, authorisation for the Directors to fix the auditor’s remuneration for
the coming year: 170,877 shares.
• With respect to Resolution 2, election of Catriona Macleod as Director: 160,627 shares.
• With respect to Resolution 3, election of Jack Porus as Director: 160,627 shares.
• With respect to Resolution 4, re-election of Paul Steere as Director: 160,627 shares.
Your Board supports these resolutions and we intend to vote all of these shares in favour of these
resolutions.

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As I mentioned earlier you may ask questions at any time, and we will address questions specific to each
resolution at the time.

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[SLIDE 36: RESOLUTION 1]
Resolution 1 relates to the remuneration of auditors. The proposed ordinary resolution is to authorise
the Directors to fix the auditor’s remuneration for the coming year. In accordance with the Companies
Act, Ernst & Young have been automatically reappointed as the company’s auditors. As is usual with
audit fees, due to the complexity and changing nature of the company’s affairs, it is not possible to fix
the remuneration at the beginning of the year.
I now move, as an ordinary resolution, that the Board is authorised to fix the auditor’s remuneration for
the coming year.
I now invite questions on the resolution.
[Discussion]
There appears to be no [further] discussion.
We will now move to the next resolution.


[SLIDE 37: RESOLUTION 2]
Resolution 2 relates to the election of Directors, as required by the company’s constitution and NZX
Listing Rules. Directors appointed by the Board since the last Annual Shareholders’ Meeting and are
therefore required to stand for election at this meeting.
Resolution 2 relates to the election of Catriona Macleod.
The Board recommends Catriona Macleod to you as a Director and unanimously supports her election.
I now invite Catriona to briefly address the meeting on her proposed election.
[Address from Catriona]
Thank you Catriona.
I now move, as an ordinary resolution, that having been appointed during the year by the Board and
holding office only until the Annual Meeting, Catriona Macleod be elected as a director. Are there any
questions on this resolution?
[Discussion]
There appears to be no [further] discussion.
We will now move to the next resolution

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[SLIDE 38: RESOLUTION 3]
Two directors are required to retire at this meeting. The Directors to retire are those who have been
longest in office since their last election, being Jack Porus and Paul Steere.
Resolution 3 relates to the re-election of Jack Porus as a director.
The Board recommends Jack Porus to you as a Director and unanimously supports his re-election.
I now invite Jack to briefly address the meeting on his proposed re-election.
[Address from Jack Porus]
Thank you Jack.
I now move, as an ordinary resolution, that having retired in accordance with NZX Listing Rule 2.7.1, Jack
Porus be re-elected as a director. Are there any questions on this resolution?
[Discussion]
There appears to be no [further] discussion.
I will move now to the final resolution.

[SLIDE 39: RESOLUTION 4]
Resolution 4 relates to the re-election of Paul Steere as a director.
The Board recommends Paul Steere to you as a Director and unanimously supports his re-election.
I now invite Paul to briefly address the meeting on his proposed re-election.
[Address from Paul Steere]
Thank you Paul.
I now move, as an ordinary resolution, that having retired in accordance with NZX Listing Rule 2.7.1, Paul
Steere be re-elected as a director. Are there any questions on this resolution?
[Discussion]
There appears to be no [further] discussion.

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[SLIDE 40: VOTING AND QUESTIONS]
We will now move to general questions and to complete the voting.
If you have not already voted, please do so now. Whilst I allow time for you to complete voting, I will
respond to questions that have been raised by shareholders.
[Response to questions raised by shareholders. When no further questions, John to continue:]

Ladies and gentlemen that concludes our discussion on the items of business, and questions from
shareholders.
In a couple of minutes, I will close the voting system. Please ensure that you have cast your vote on all
resolution. I will now pause to allow you time to finalise those votes.
....wait for 90 seconds
Voting is now closed.
Now that all votes have been cast they will be counted by the Company’s share registrar, Computershare,
and scrutinised by the Company’s auditor. The results of today’s meeting will be shown on screen shortly
as a draft, and then released to NZX on the completion of verification of voting.
[Lumi to show voting results on screen]

Questions
I will now ask for any final questions from shareholders. [questions]
Are there any items of general business to be discussed?
There appears to be no further business for discussion.

[SLIDE 43: FINAL]
I would like to close by taking this opportunity to thank my fellow Directors, the Senior Leadership Team
and the whole New Zealand King Salmon team for their continued contribution to your company, and in
working through what has been a very challenging year globally.
Ladies and gentlemen, that brings us to the end of formal business for New Zealand King Salmon’s 2020
Annual Shareholders’ Meeting. Thank you for taking the time to participate today.

[ENDS]

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

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
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AGENDA
•Welcome
•Chairman’s review
•Managing Director’s review
•Ordinary business and resolutions

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
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QUESTION PROCESS
•When the Question function is
available, the Q&A icon will appear at
the top of the app.
•To send in a question, simply click in the
‘Ask a question’ box, type your question
and the press the send
arrow
•Your question will be sent
immediately for review

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
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VOTING PROCESS
•When the poll is open, the vote will be
accessible by selecting the voting icon at
the top of the screen
•To vote simply select the direction in
which you would like to cast your vote,
the selected option will change colour.
•There is no submit or send button, your
selection is automatically recorded.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
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CHAIRMAN'S REVIEW
•Strong financial performance despite the impact of COVID-19 in 2H20.
•Result supported by improved pricing with high level of branding adding resilience.
•The implementation of a new production model enabling further progress towards our
aquaculture goals.
•The progression of open ocean farming with Marlborough District Council (MDC) pre
hearing meetings set for Nov / Dec 2020

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
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MANAGING DIRECTOR'S REVIEW
•FY20 Highlights
•Sustainability
•Business Update
•Outlook
•Future Farming

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
H I G H L I G H T S
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01

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
FINANCIAL HIGHLIGHTS
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•Revenue of $155.3m, down 10% on FY19.
•Achievement of strong pricing with average of $24.54/kg, up 7% on FY19.
•Solid Pro Forma Operating EBITDA of $25.1m*, in line with FY19 and within the FY20
earnings guidance range of $25.0m –28.5m.
•COVID-19 Wage subsidy helped us to protect all jobs.
•GAAP NPAT of $18.0m, up 59% on FY19 due to an increase in biomass and average fish size
as we slowed harvest.
* A full reconciliation between GAAP and Pro Forma results is shown on page 36 of our full year results announcement available at www.kingsalmon.co.nz/investors.

114
136
160
173
155
G E O G R A P H I C S P R E A D O F R E V E N U E
FACTS AND FIGURES
37%
3%
6%
6%
2%
$155
R E V E N U E O F
M I L L I O N
7,336
M E T R I C T O N N E S H A R V E S T E D
D U R I N G F Y 2 0
2%
P R O-F O R M A O P E R A T I N G E B I T D A
NZ$m
N Z $ m
G A A P E B I T D A
44%
16.0
21.6
26.2
25.2
25.1
5
10
15
20
25
30
FY16FY17FY18FY19FY20
13.8
38.5
28.5
23.1
36.1
10
20
30
40
50
FY16FY17FY18FY19FY20
9

546
T E A M M E M B E R S
347
L O C A L S H A R E H O L D E R S
100%
C O M M I T M E N T T O
E N S U R I N G
R E U S A B L E / R E C Y C L A B L E
F O R C O M P O S T A B L E
P A C K A G I N G B Y 2 0 2 5
239
kg
O F W A S T E C O L L E C T E D O V E R 3 6
B E A C H C L E A N-U P S
44%
T O T A L S A L E S
N E W Z E A L A N D
56%
E X P O R T
3
9
H ATC H E R I E S
T A K A K A , W A I A U & T E N T B U R N
S E A FA R M S
I N T H E M A R L B O R O U G H S O U N D S
3
FA C TO R I E S
F R E S H & V A L U E A D D E D
C O L D S M O K E D
H O T S M O K E D
N E A R M I S S E S R E P O R T E D
560
F Y 2 0 L T I F R
D O W N F R O M
2 8 . 1 I N F Y 1 9
13.7
M O N T E R E Y B AY
GREEN “TRAFFIC LIGHT” RATED
10

TO BE THE TOP OF THE SOUTH’S MOST VALUED ORGANISATION AND THE
WORLD’S MOST INSPIRATIONAL SALMON COMPANY
VISION
C R E AT I N G T H E U LT I M AT E S A L M O N E X P E R I E N C E
PURPOSE
W E W A N T A L L N Z K S / S TA K E H O L D E R I N T E R A C T I O N S T O L E A V E S TA K E H O L D E R S
B E T T E R O F F A S A R E S U L T
MISSION
M A X I M I S AT I O N O F V A L U E / B E T T E R E V E R Y D A Y / I N T E G R I T Y / T E A M W O R K &
C U L T U R E / Q U A L I T Y A N D I N N O V A T I O N
VALUES
SUPPORTING STRATEGIES
H E A L T H & S A F E T Y
I N C L U D I N G F O O D
S A F E T Y
F A R M O N ES P E C I E S :
K I N G S A L M O N
D O M I N A T E P R E M I U M S A L M O N
N I C H E S W O R L D W I D E
S U S TA I N A B I L I T Y
C O M M U N I T Y
E N G A G E M E N T
E N G A G E D P E O P L E
1 0 0 % B R A N D E D
C O S T C O M P E T I T I V E
VISION, PURPOSE, MISSION AND VALUES
11

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
12
S U S TA I N A B I L I T Y
0202

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
13
OUR COMMUNITY
QC Yacht Club Rebuild
Marlborough Boys College
Marlborough Girls College
Kaipupu Point Wildlife
Sanctuary
Waikawa Boating Club
King Shag Conservation
Project
Koru Wildlife
Centre
Fifeshire
Foundation
Havelock Mussel
and Seafood
Festival
Picton Maritime
Festival
Culinary Partners at the Marlborough Wine
and Food Festival
Key event sponsor at Feast
Marlborough
13

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
14
ACCREDITATIONS / ENDORSEMENTS
First in Australasia to achieve 4 star Best
Aquaculture Practices (BAP) certification

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
15
ADDRESSING CLIMATE
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.
Major contributors :
•Airfreight
•Feed (composition)
Overall, New Zealand King Salmon’s emissions per kilogram harvested are:
Land animals such as beef produce up to 4x the emissions of Salmon.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
16
FISH HEALTH AND WELFARE
To give our fish the best chance to reach their potential, New Zealand King Salmon follow two key management plans.
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 affects or may affect our Kingsalmon
population.
Rapid response, routine health monitoring, philosophy of continuous improvement, early investigation

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
CAPITAL EXPENDITURE –KEY PROJECTS (FY20)
17

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
18
B U S I N E S S U P D AT E
03

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
With the departure of our Chief Operating Officer (COO) we have
reviewed the role and our operational practices and have decided to
split the COO role between Aquaculture and Processing.
We are delighted to have appointed Grant Lovell as General Manager of
Aquaculture.
The General Manager of Processing role is currently vacant although we
expect to make an appointment in the near future.
SENIOR LEADERSHIP TEAM
19

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
This was our key initiative for FY20 and again in FY21 sees us focusing on the protection of fish health, improved survival rates
and the adoption of the best possible biosecurity practices. This year we will be concentrating on:
•Utilisation of upwelling systems to improve flow and provide cooler water from lower depths.
•Net cleaning and maintaining the best possible environmental conditions on farms.
•Reduced handling of stock, freeing up team member time for husbandry focus.
•Feed management–especially during summer –with tide specific feeding regimes and altered feeding practices during the
warmest periods.
•Mitigating the exposure of large fish to high summer water temperatures. Right fish, right location, right time.
Improvements seen to date are pleasing with further improvements to fish health and survival expected over the next 2-3 years
as the model is refined.
AQUACULTURE MODEL EVOLVING
20

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
21
OUR RESPONSE TOCOVID-19
Where we stood pre Covid-19
Strong brands, diversified markets, expertise in food safety, solid financial base.
Challenges presented
Rapid decline in sales, challenges in supply chain and distribution, increased focus on food
safety, changes to operations and an increase in e-commerce.
How we responded
Strong sales, safe work practices, additional PPE, donations to essential health workers
and the local community.
Opportunities moving forward
Greater retail depth, brand reputation, social licence, e-commerce, stronger NZ brand in
the international market.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
22
THE IMPACT OF COVID-19
•Disruptions to global supply chains meant that we were unable to fulfil all available orders.
•The need to maintain our farming and processing operations saw NZKS incur an increased cost of working.
•Core sales continue to recover with strong sales to North America and Australia particularly pleasing.
•Asian markets are taking longer to recover with New Zealand foodservice impacted by the 2
nd
Auckland lockdown.
Actual Sales
Forecast Sales
JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEP
NZ LEVEL 4
AUCKLAND
LEVEL 3-2

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
23
STRONG BRANDS AND PARTNERSHIPS
We featured on the ‘NZ
special’ of Chef Massimo
Bottura’shugely successful
Kitchen Quarantine
IGTV/YouTube session.
Our strong brands, partnerships and collaborative approach supported a prompt pivot into e-commerce and specialty retail to help
replace lost foodservice sales.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
24
ŌRA KING
Our key focus for the year has been stronger partnerships. We have
worked closely with our importers and distributors, with regular
outreach, brand education and sales support.
•We have grown our Instagram following an impressive 30% to
13,000 followers.
•During the Covid-19 crisis we supported our loyal chefs and
donated salmon to feed furloughed foodservice workers,
healthcare workers and others in need.
•In wake of extensive restaurant closure we pivoted to selling (via
North America customers) to consumers online.
•North American ŌraKing sales held up well despite the challenges
seen this year and are currently in line with sales for this time last
year.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
25
DIVERSIFICATION BUILDS RESILIENCE
Omega Plus
•We continue to see strong demand and growth in export markets.
•FY20 saw a significant increase in revenue from sales of Omega Plus in China.
•Omega revenue for FY20 was $1.6m up 58% on the prior year (FY19 $1.0m).
Atlantic Salmon
•Competition at the lower end of the market continues to grow with Atlantic taking a greater
share of the New Zealand salmon market.
•Our first Atlantic range -Regal Epicurean hot smoked was launched in November.
•FY20 Revenue from Atlantic sales was $2.1m
Sales of Atlantic and Omega Plus continue to grow, from a low base
We are targeting to double revenue from Omega Plus and Atlantic in FY21 although note EBITDA impact is not material.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
CAPITAL EXPENDITURE –KEY PROJECTS (FY20)
26
Rendering of the Tentburn first feeding facility (first eggs transferred
August, expected completion January 2020).
Our latest barge the Thomas Song installed at our
Waitata farm in October 2019.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
O U T L O O K
04
27

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
OUTLOOK
Expectations for FY21 and beyond
•Harvest for FY21 and FY22 is forecast at ~8,500 tonnes as per previous guidance, with the carry over of stock from FY20 and FY21used to provide
sales and value growth.
•As previously advised, capital expenditure for FY21 is forecast at ~$10m, and payment of dividends will re reviewed next year.
•COVID-19 continues to cause ongoing uncertainty in both the foodservice and retail sectors (many supermarkets are not currently considering new
products), however
►Core branded / premium priced sales are recovering better than originally expected, with our current sales run rate around 7,000tonnes
annualised, and with pricing and positioning remaining very robust.
►Sales of excess / frozen inventory slightly below expectations at this point however we have funding facilities in place to be patient in this aspect.
•We are very pleased with the start to FY21 however as previously advised it may be challenging for FY21 pro forma EBITDA to exceed FY20. Our
species remains scarce and aspirational, and we are very positive about the future.
•Water space initiatives remain key and we are hopeful of a decision on both our Blue Endeavour Open Ocean resource consent application and the
MPI farm relocation, within FY21.
28

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
BALANCE DATE CHANGE
•Summer is a challenging time for fish performance and survival, particularly on low flow sea farms, and in February / March especially.
•To provide greater certainty of earnings and guidance our Board has resolved to change balance date to 31 January, effective 2021.
►We will report our half year results to 31 December 2020, followed by
►Full period results for the 7 month period to 31 January 2021
29
JulAugSepOctNovDecJanFebMarAprMayJun
Monthly mortality pattern
Current June balance date
We have resolved to change our balance date to improve certainty of earnings
FebMarAprMayJunJulAugSepOctNovDecJan
Monthly mortality pattern
New January balance date

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
F U T U R E FA R M I N G
30
0405

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
FUTURE FARMING –FARM RELOCATION
31
Farm relocation (MPI Salmon Relocation Process):
•The 2017 Hearing Panel recommendation to the Minister on which farms to relocate is unlikely to have any material impact on
site capacity, however it may result in modest fish performance improvements.
•A revised proposal from iwi and NZKS was provided to MPI in June 2019, including use of the proposed site at mid Waitata.
•Any potential production benefit from relocation would be achieved in FY24 or beyond due to process timing and existing
production cycles.
•We support the relocation proposal concurrently with Blue Endeavour, as this ensures better production continuity.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
32
FUTURE FARMING
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.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
33
33

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
FUTURE FARMING –OPEN OCEAN
34
Open Ocean Farming -NZKS has applied for its first open ocean farming consent comprising two stages, in the Marlborough
region:
•NZKS is currently in the process of providing the Marlborough District Council (MDC) with additional information as requested,
a pre hearing meeting is expected in Nov / Dec 2020 with any public hearings to follow in early 2021.
•The earliest possible harvest from the region would be in the 4
th
quarter of the 2023 calendar year.
•Capital costs for the infrastructure associated with Blue Endeavour are estimated at ~$35m with some ability for this spend to
be staged.
•Our consent application is for up to 5,000 tonnes of harvest per annum, per stage.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
35
R E S O L U T I O N S
01

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
RESOLUTION 1
36
That the Board is authorised to fix the auditor’s remuneration for the coming year.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
RESOLUTION 2
37
Having been appointed during the year by the Board and
holding office only until the Annual Meeting, that
Catriona Macleod be elected as a Director.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
RESOLUTION 3
38
Having retired in accordance with NZX Listing Rule 2.7.1,
that Jack Porus be elected as a Director.
Better Picture
Required

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
RESOLUTION 4
39
Having retired in accordance with NZX Listing Rule 2.7.1,
that Paul Steere be elected as a Director.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
V O T I N G A N D Q U E S T I O N S
40

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
APPENDIX –GLOSSARY OF TERMS
FY20Financial results for the 2020 financial year covering the period 1 July 2019 to 30 June 2020
EBITDAEarnings before interest, tax, depreciation and amortisation
FCRFeed Conversion Ratio –the amount of feed (in kilograms) required to grow 1 kilogram of fish weight
G&GGilled and gutted. Note that all volumetric information presented is on a gilled and gutted basis unless otherwise stated
GAAPGenerally Accepted Accounting Practice
Mortality / Mortality Rate
The percentage mortality of salmon in seawater, calculated as the biomass of salmon mortalities in kg divided by the growth of salmon in
kg
NPATNet profit after tax, also reported as net profit for the period in our published financial results
NZKSNew Zealand King Salmon
Pro Forma Operating
EBITDA
Pro Forma Operating EBITDA refers to earnings before interest, tax, depreciation, amortisation after allowing for pro forma adjustments
as described in the Appendices to this document. Pro Forma Operating EBITDA is a non-GAAP profit measure
Upwelling SystemA system that allows dense cooler water to be moved towards the ocean surface, displacing the warmer water and increasing water flow.
41

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G
42
DISCLAIMER
The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, neither New Zealand King Salmon Investments Limited
nor any of its directors, employees, shareholders nor any other person shall have any liability whatsoever to any person for anyloss (including, without limitation, arising from any fault or negligence)
arising from this presentation or any information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates and
assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplatedin any projections and forward-looking statements in this presentation
will be realised. Actual results may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release to you or to
provide you with further information about New Zealand King Salmon Investments Limited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial measures used in this
presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance expense / (income), and taxation expense to net earnings / (loss) from continuing operations.
•EBIT. We calculate EBIT by adding back (or deducting) finance expense / (income), and taxation expense to net earnings / (loss) from continuing operations.
•Pro Forma Operating EBITDA refers to earnings before interest, tax, depreciation and amortisation after allowing for pro forma adjustments as described in the Appendix to this document.
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position or returns, but that they should
not be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP financial measures may not be comparable to similarly titled amounts reported
by other companies.
Forward-looking statements are subject to any material adverse events, significant one-off expenses or other unforeseeable circumstances.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation constitutes legal,
financial, tax or other advice.

F Y 2 0 A N N U A L S H A R E H O L D E R S M E E T I N G