NZK 1H21 Half Year Results Announcement

Market Announcement
February 24, 2021
NEW ZEALAND KING SALMON ANNOUNCES 1H21 RESULT
New Zealand King Salmon Investments Ltd (NZX & ASX:NZK) reports its financial performance for the
six month period ended 31 December 2020 (1H21). Key points include:
• Covid-19 disruptions to both domestic and export markets have impacted profitability.
• Mitigation strategies include a global rebalancing of sales towards retail and the prioritisation
of premium customer opportunities.
• Clearing excess inventory with retail price promotions and selective foodservice sales
impacted margins but did improve cashflow.
• Average price achieved of $23.90/kg, slightly down from $24.46/kg in 1H20.
• Revenue of $82.4m, down from $84.2m in 1H20, reflecting lower average pricing.
• Sales volume of 3,441 tonnes was equal to 1H20.
• Pro Forma Operating EBITDA of $10.5m, compared with $16.5m in 1H20.
• Statutory NPAT of ($4.3m), down from $20.8m in 1H20.
• No interim dividend is declared.
Chairman John Ryder said: “Despite a challenging year with the Covid-19 pandemic still affecting our
business, sales volumes in the six months were almost identical to the previous year. This result is
encouraging considering the ongoing restrictions on foodservice, particularly in the US and Europe.
“Re-establishing our global sales incurred higher costs with expensive air freight being a significant
factor.
“In the US, it’s excellent to see our Ōra King salmon now being sold via new channels, including
speciality seafood online, and an increased retail presence for our Regal smoked salmon. In addition
to premium branded sales recovering, we believe we have sufficient indications of positive demand
to ensure clearance of all surplus fish by around mid CY21.”
New Zealand King Salmon CEO Grant Rosewarne acknowledged it had been a tough period following
the continued impact of the lockdown but anticipates that sales demand will again be greater than
the company’s ability to supply later in the year.
“Necessary changes to our sales strategies have impacted profitability and this has increased our
determination to build resilience through channel, category and geographic diversity. Core sales have
recovered better than expected – now we need to rebuild value.
“We have already paved the way for incremental demand by keeping our premium brands prominent
in the mind of the consumer. In New Zealand, for example, we have chosen to promote our new Regal
Maple range to encourage trial, grow the market and build Regal brand awareness. Customers around
the world are still eager for our King salmon products which fit well into the growing global demand
for healthy and safe food products.
“We continue to evolve our aquaculture model with upwelling being used on the farms where we
have seen warmer water temperatures, particularly on lower flow sites.

“We’re optimistic that our plans to farm in the open ocean, 7kms north of Cape Lambert in the Cook
Strait are progressing well. Our Blue Endeavour application is now expected to have a hearing in
July/August this year. If successful, we would expect a harvest in mid CY24.”
The application is aligned with the Government’s Aquaculture Strategy which was launched in late
2019 with the objective to have the industry achieve $3 billion by 2035.
“Blue Endeavour will play a critical role in our future with climate change continuing to impact our
farms.
“It’s undoubtedly an exciting time for the industry as the future for salmon farming is in the open
ocean. We will need the continued support from all levels of Government and the community to
achieve it. We firmly believe that Aquaculture could become New Zealand’s most valuable industry
and its greenest primary sector” Mr Rosewarne added.
Following the change in the company’s balance date to 31 January, further information on the outlook
will be provided at the full year results announcement at the end of March.

Ends

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



About New Zealand King Salmon
New Zealand King Salmon is the world’s largest producer of the premium King salmon species. We
operate under four key brands: Ora King, Regal, Southern Ocean and Omega Plus, and the New
Zealand King Salmon label. We have been growing and selling salmon to consumers for more than 30
years. Today we employ over 500 people. New Zealand investors make up a significant percentage of
the ownership of NZ King Salmon, and the communities of Marlborough, Nelson and Tasman are well
represented with around 400 of the approximately 2,900 shareholders being from the Top of the
South.

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

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1H21 HALF YEAR FINANCIAL RESULTS

1H21 HALF YEAR RESULTS
HIGHLIGHTS
2
01

1H21 HALF YEAR RESULTS
1H21 SUMMARY
Profitability impacted by COVID-19. These impacts are expected to be temporary:
•Profitability impacted by early calendar year 2020 sales disruption and its flow on impacts:
►Higher airfreight costs.
►Requirement to move excess inventories built up during lockdown – an industry-wide issue.
►Higher than usual domestic retail promotional activity to stimulate sales.
•Pro Forma Operating EBITDA of $10.5m, compared with $16.5m in 1H20. Proforma NPAT of $3.7m, compared with $8.7m in 1H20.
•Statutory NPAT of ($4.3m), compared with $20.8m in 1H20.
•Imported Atlantic programme now margin positive.
3
* A full reconciliation between GAAP and Pro Forma results is shown on pages 19 and 20 of this presentation.

1H21 HALF YEAR RESULTS
1H21 SUMMARY (CONTINUED)
Strong domestic and international recovery in sales:
•Sales volumes 3,442 MT are consistent with sales during 1H20 (prior to onset of the COVID pandemic) of 3,441 MT.
•Branded product has retained its premium positioning and pricing both domestically and offshore.
•Development of new sales channels in North America resulted in sales volume growth in this market and positions the business well for accelerated
growth as foodservice markets return to strength.
•Strong growth in domestic retail sales with launch of new ‘maple’ hot and cold smoked products. Our TV and promotional activityled to smoked
category growth of 11% year-on-year with NZKS share increasing from 49% to 56%.
•Sales of $82.3m only 2% down on pre-pandemic 1H20 levels ($84.2m).
•Successful June Hog (7kg+ ŌraKing) trial with US customers. Strong example of further product differentiation
and value creation within the product range.
Outlook
•We will make further comment on New Zealand King Salmon’s outlook when FY21 full year results are provided
to the market (end of March)
•We expect all excess inventories of salmon to be cleared by the middle of calendar year 2021.
•Demand anticipated to exceed supply from late calendar year 2021.
4
Margin ($ per KG)
Ōra King
(3-7 kgs)
June Hog
(7+ kgs)
Tyee
(12+ kgs)

1H21 HALF YEAR RESULTS
GEOGRAPHIC SPREAD
OF REVENUE
FACTS AND FIGURES
36%
4%
4%
45%
7%
3%
$82.3
1H21 REVENUE OF
MILLION
4,150
METRIC TONNES HARVESTED
DURING 1H21
5
7.3
19.5
17.3
16.5
10.5
-
5
10
15
20
25
1H171H181H191H201H21
NZ$m
1H PRO-FORMA OPERATING EBITDA
8.7
15.7
15.1
20.8
(4.3)
(10)
(5)
-
5
10
15
20
25
1H171H181H191H201H21
NZ$m
1H STATUTORY NPAT
1%

1H21 HALF YEAR RESULTS
FINANCIAL
OVERVIEW
6
0302

1H21 HALF YEAR RESULTS
•Performance recovering as new sales channels are developed resulting in total sales volumes consistent with same time a
year ago (prior to COVID sales disruption). Some excess inventory cleared at lower prices.
•GAAP results are impacted by fair value losses, a function of tighter margins during 1H21. In addition, the mix of livestock
sees a larger proportion of younger fish in the water.
SUMMARY FINANCIAL INFORMATION
* A full reconciliation between GAAP and Pro Forma results is shown on pages 19 and 20 of this presentation.
7
Group Financial Performance
NZ$000s1H211H20% chg.1H211H20% chg.
Volume Sold (MT)3,4423,4410%3,4423,4410%
Revenue82,27984,189-2%82,27984,189-2%
Gross Margin24,57330,857-20%14,34347,886-70%
Gross Margin %30%37%17%57%
EBITDA10,50416,470-36%27433,946-99%
EBITDA %13%20%0%40%
EBIT6,24112,695-51%(4,729)29,515-116%
NPAT3,6608,722-58%(4,323)20,766-121%
Pro-Forma*GAAP

1H21 HALF YEAR RESULTS
FarmVolume Harvested*
1H202H201H21
Queen Charlotte
Ruakaka480 MT--
Otanerau--910 MT
Tory Channel
Clay Point565 MT1,535 MT-
Te Pangu690 MT1,510 MT1,360 MT
Ngamahau490 MT540 MT-
Pelorus Sound
Waitata1,520 MT-35 MT
Kōpaua---
Waihinau--830 MT
Forsyth--1,010 MT
3,745 MT3,585 MT4,145 MT
Total harvest was up to 4,150 MT. The new production model sees a slightly higher proportion of harvest taking place in the
Pelorus and Queen Charlotte sounds during FY21.
HARVEST BY FARM
8
*Based on harvests from sea farms. Note that minor additional volumes are harvested from our hatcheries (a total of 6 MT in FY20 and 5 MT in 1H21).

1H21 HALF YEAR RESULTS
New Zealand King Salmon maintains its strong financial position.
Our balance sheet remains strong with debt increasing due to higher inventories:
•Net debt of $43.0m (out of total debt facilities of $65.0m):
►We remain confident we have the funding facilities and bank support in place to
navigate this period.
►Above average inventories expected to be converted to cash in the near future
following strong recovery in sales.
►No issues with customer collections, increases in Receivables reflects improving sales.
►Given the uncertain macroeconomic climate, the Board does not expect to declare a
dividend for the 7 month FY21 year.
•PP&E largely stable with capex slowed to an annual run-rate of ~$10m. Total capex for
the 7 month FY21 year is ~$5.4m.
•‘Other’ current and non-current assets increased by >$15m due increases in the mark-to-
market valuation of foreign exchange contracts.
BALANCE SHEET
9
Group Financial Position
Dec-20
Jun-20
NZ$000sUnaudited
Audited
Current Assets
Cash and equivalents
5,5817,115
Receivables14,75812,777
Inventories45,78335,612
Biological Assets
69,67781,784
Other
5,734907
141,533
138,195
Non-current Assets
Property, plant & equipment60,908
60,481
Right of use assets7,039
4,581
Biological assets
18,22610,594
Other70,859
60,333
157,032135,989
Total Assets298,565274,184
Current Liabilities
Loans (external)(2,614)(1,132)
Lease Liabilities(1,586)(1,347)
Payables(17,469)(14,847)
Other(10,646)(10,767)
(32,315)(28,093)
Non-Current Liabilities
Loans (external)(46,000)(37,000)
Lease Liabilities(5,544)(3,258)
Other(20,291)(21,519)
(71,835)(61,777)
Total Liabilities(104,150)(89,870)
Net Assets194,415184,314
Net Cash / (Debt)(43,033)(31,017)

1H21 HALF YEAR RESULTS
OPERATIONAL UPDATE
10
03

1H21 HALF YEAR RESULTS
JanFebMarAprMayJunJulAugSepOctNovDec
20192020
SALES PERFORMANCE
Sale volumes have been rebuilt, with volumes of product sold in November and December 2020 higher than the same period
in 2019:
•A strong recovery in sales volumes particularly during Q4 calendar year 2020, albeit with temporary margin compression.
•Growth in domestic retail coupled with strong sales in the US as new channels to market are developed has replaced COVID-affected foodservice market.
•Our sales model has become more resilient. Increased sales depth positions the business well for sales during the 2021 calendaryear.
Trends in volumes show a strong recovery in sales, especially in the last 3 months of 2020
11
Total Sales Volumes by Month, 2020 vs 2019 (MT)
Global lockdowns
AklLvl3
lockdown
NZ retail
promotions

1H21 HALF YEAR RESULTS
12
SALES BY MARKET - EXPORT
Sales to North America have recovered strongly as alternative channels to market
have been developed
•Record volume of product sold to North America whilst maintaining price in a challenging environment
(except for discrete disposal sales at a lower price).
•We have cultivated new sales channels for our product in North America to fill the gap left behind by
foodservice due to COVID lockdowns. This includes online delivery, fishmongers and specialty retail.
•Successful trial of ŌraKing June Hog in US.
•Post COVID, these new channels should provide the platform for an acceleration of growth in this
market.
Continuing to target branded premium markets
North America (MT)
China (MT)
Sales to China have decreased through the
pandemic
•Sales to this market continue to be affected by global
challenges.
•Sales are not expected to increase during this period.
•Petfood sales (not shown) growing strongly.
682
1,158
1,173
1,227
1,230
1,036
1,017
1,204
1,088
FY17FY18FY19FY201H21
25
46
80
17
23
46
104
46
FY17FY18FY19FY201H21
First half salesSecond half sales

1H21 HALF YEAR RESULTS
13
SALES BY MARKET - EXPORT
Strong performance in other export markets
Most markets saw an increase in volumes, premium branded product maintained solid price performance
•Australia – a positive result with sales growth as NZKS continues to establish its premium positioning in foodservice markets.
•Asia (ex Japan and China) – this market continues to track well but has been impacted in the short-term by the loss of airline customers.
•Japan – excess frozen volumes cleared through Japan resulting in increased volumes to this market but with margins temporarily impacted.
•Europe – strong and pleasing growth in sales to Europe, as increased resources in this market have delivered record sales volumes for this region.
Australia (MT)Asia (MT)
Excludes Japan and China
Japan (MT)Europe (MT)
First half salesSecond half sales
369
349
291
216
236
334
235
253
173
FY17FY18FY19FY201H21
152
201
207
194
137
160
208
226
159
FY17FY18FY19FY201H21
146
310
117
135
203
185
132
132
99
FY17FY18FY19FY201H21
43
55
73
67
94
45
66
54
53
FY17FY18FY19FY201H21

1H21 HALF YEAR RESULTS
14
SALES BY MARKET - DOMESTIC
Growth in retail volumes as emphasis placed on smoked products
•Disruption to export and foodservice markets has created the opportunity to renew domestic retail
interest, grow the market, and build brand awareness.
•NZKS has targeted demand growth in smoked products including through the launch of new
‘maple’ smoked products.
•These initiatives, coupled with promotional activity and increased marketing spend have delivered a
14% year-on-year growth in domestic retail sales (by volume), offsetting contraction in the COVID-
impacted foodservice market.
•Margins have temporarily declined as a result of initiatives to support sales growth.
Strong growth in retail offsets COVID impacted foodservice market
Domestic Market(MT)
First half salesSecond half sales
2,039
2,294
1,915
1,522
1,525
2,008
1,682
1,725
1,272
FY17FY18FY19FY201H21

1H21 HALF YEAR RESULTS
AVERAGE SALE PRICES
New Zealand King Salmon’s core branded and differentiated business continues to attract premium pricing. Pricing for
these products has remained firm.
Excess product (due to the significant supply and demand imbalance in and around April / May 2020) has resulted in some frozen product being sold in
Japan and the US at lower pricing. Initiatives are in place to have all excess stock cleared by the middle of calendar year 2021.
Branding underpins customer loyalty and value to our business
15
* Volume weighted average sales price for all exported salmon based on foreign exchange rates achieved as outlined on the table above.
Sale Prices* and Exchange Rates
FY17FY18FY19FY201H21
Average Sales Price per kg
Domestic SalesNZD18.77 20.22 22.11 24.91 24.31
Export Sales (All Markets)NZD20.46 21.70 23.85 25.05 24.36
Foreign Exchange Rates
NZD:AUD0.930.930.940.940.94
NZD:USD0.690.690.680.670.64
NZD:JPY77.175.671.368.369.1

1H21 HALF YEAR RESULTS
16
FISH PERFORMANCE
Fish performance continues to be a key focus for the business
•New Aquaculture General Manager, Grant Lovell (20 years King Salmon experience), is combining the best of prior production models.
•Harvest volumes increased to 4,150 MT, 11% higher than 1H20.
•Harvest rates were intentionally slowed through Q4 FY20 before being accelerated recently to manage summer biomass levels. This led to larger and
older fish and inevitably higher levels of mortality due to fish maturation (estimated at 30% of 1H21 total mortality). In addition these larger and
older fish display poorer levels of feed conversion. Accordingly, the impact of fish performance initiatives has yet to be reflected in these results.
•We continue to adapt our operating model to mitigate the impact of warmer summer waters. Upwelling is being used this summertocirculate
cooler deeper water to our fish especially at low flow sites.
•Biomass at sea is consistent with levels in recent periods.
Biological Performance
1H211H20% chg.1H19% chg.
Harvest Volume (MT)4,150 3,742 11%4,026 3%
Feed Conversion Ratio (FCR)1.731.598%1.74-1%
Mortality as a % of Biomass11.9%5.6%113%5.6%114%
Closing Livestock Biomass6,944 7,060 -2%6,915 0%
Feed Cost ($ / Kg of feed)2.542.483%2.444%

1H21 HALF YEAR RESULTS
FUTURE FARMING & HARVEST VOLUMES
17
This slide provides an update on future farming volumes:
Farm relocation (MPI Salmon Relocation Process):
•Adoption of the 2017 Panel recommendation would be unlikely to have any material impact on site capacity however it may result in modest fish
performance improvements.
•A revised proposal from Iwi and NZKS was provided to MPI in June 2019, including use of the proposed site at Mid Waitata.
•Any potential production benefit from relocation would be achieved in calendar year 2024 or beyond due to process timing.
Open Ocean Farming -NZKS has applied for its first open ocean farming consent comprising two farm sites, in the Marlborough region:
•The region has been named “Blue Endeavour” representing a step towards the long term sustainability of the industry.
•The RMA consenting process is underway and hearings are expected for June 2021.
•The earliest possible harvest from the region would be in the middle of the 2024 calendar year.
•Capital costs for the infrastructure associated with Blue Endeavour are estimated at ~$35m with some ability for this spend to be staged. This
investment would be expected to generate an eventual production volume of ~4,000 MT per site per 18 month cycle.
•Blue Endeavour is both a volume and unit value driver.

1H21 HALF YEAR RESULTS
18
APPENDICES
04

1H21 HALF YEAR RESULTS
APPENDIX – 1H21 RECONCILIATION BETWEEN GAAP
RESULTS AND PRO FORMA FINANCIALS
19
Statutory
Financial
Statements
Fair Value
Adjustments
IFRS 16 Lease
Adjustments
Pro Forma
Operating
Financial
Information
Revenue
82,27982,279
Cost of goods sold(78,350)31,018(789)(48,121)
19,999(19,999) -
Freight costs to market(9,585)(9,585)
Gross Profit14,34311,019(789)24,573
Other operating income454454
Overheads
Sales, marketing and advertising(6,732)(6,732)
Distribution overheads(2,679)(2,679)
Corporate expenses(5,110)(5,110)
Other expenses(2)(2)
27411,019(789)10,504
Depreciation and amortisation(5,003)740(4,262)
(4,729)11,019(48)6,241
Finance income44
Finance costs(1,147)117(1,030)
Net finance costs(1,143) - 117(1,026)
Profit / (loss) before Tax(5,872)11,019685,215
Income tax (expense) / credit1,549(3,085)(19)(1,556)
Net Profit / (loss) for the Year(4,323)7,933493,660
1H21
NZD 000s
Fair value gain / (loss) on biological transformation
EBITDA
EBIT

1H21 HALF YEAR RESULTS
APPENDIX – 1H20 RECONCILIATION BETWEEN GAAP
RESULTS AND PRO FORMA FINANCIALS
20
Statutory
Financial
Statements
Fair Value
Adjustments
IFRS 16 Lease
Adjustments
Pro Forma
Operating
Financial
Information
Revenue84,18984,189
Cost of goods sold(74,830)29,429(260)(45,661)
46,198(46,198) -
Freight costs to market(7,671)(7,671)
Gross Profit47,886(16,769)(260)30,857
Other operating income9494
Overheads
Sales, marketing and advertising(6,609)(86)(6,695)
Distribution overheads(2,214)(248)(2,462)
Corporate expenses(5,147)(113)(5,260)
Other expenses(64)(64)
33,946(16,769)(707)16,470
Depreciation and amortisation(4,431)656(3,775)
29,515(16,769)(51)12,695
Finance income99
Finance costs(734)92(642)
Net finance costs(725) - 92(633)
Profit / (loss) before Tax28,790(16,769)4112,062
Income tax (expense) / credit(8,024)4,695(11)(3,340)
Net Profit / (loss) for the Year20,766(12,074)308,722
EBIT
1H20
NZD 000s
Fair value gain / (loss) on biological transformation
EBITDA

1H21 HALF YEAR RESULTS
UNDERSTANDING OUR GAAP RESULTS
Our GAAP results are impacted by Fair Value gains or losses arising from the application of NZ IAS-41 Agriculture,
NZ IAS-2 Inventory and the classification of leases under NZ IFRS-16. The impact of these standards are explained below:
Fair Value under NZ IAS-41 Agriculture andNZ IAS-2 Inventory
When we record a change in biomass at sea, or where the expected future profit we realise on fish that we sell changes, thesestandards require
us to quantify and recognise the gain or loss in the current period. This applies to both biomass at sea and inventories of finished products.
Our Statement of Financial Position shows biological assets at their fair value, with 1H21 seeing a reduction in fair value as the value of biomass in the sea
was revalued downwards reflecting COVID driven margin compression especially in offshore sales. Pro Forma Operating Financial Performance removes
gains / losses associated with the application of these standards. The company will present Pro Forma results for future reporting periods on this basis.
NZ IFRS-16Leases
Under NZ IFRS-16 a lessee will no longer make a distinction between finance leases and operating leases; all (material) leases will be treatedas
finance leases.
In the statement of financial position we are therefore required to recognize the asset (or right to use the asset) and the liability for the lease, while in the
statement of profit and loss we recognize the interest cost and the depreciation of the leased asset instead of the operatinglease expenses. The
application of this standard increases EBITDA, assets and liabilities, however this impact is reversed in our Pro Forma results.
The impact of NZ IAS-41 Agriculture, NZ IAS-2 Inventory and NZ IFRS-16 Leases
21

1H21 HALF YEAR RESULTS
APPENDIX – GLOSSARY OF TERMS
1H20Financial results for the 6 months from 1 July 2019 to 31 December 2019
1H21Financial results for the 6 months from 1 July 2020 to 31 December 2020
CAGRCompounding annual growth rate
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 RateThe percentage mortality of salmon in seawater, calculated as the biomass of salmon mortalities in kg divided by the growth of salmon in kg
MTMetric tonnes
NPATNet profit after tax, also reported as net profit for the period in our published financial results
NZKSNew Zealand King Salmon
Pro Forma Operating EBITDA
Pro Forma Operating EBITDA refers to earnings before interest, tax, depreciation, amortisation after allowing for pro forma adjustments as described in
the Appendix to this document. Pro Forma Operating EBITDA is a non-GAAP profit measure
Upwelling System
A system that allows dense cooler water to be moved towards the ocean surface, displacing the warmer water and increasing water flow.
22

1H21 HALF YEAR RESULTS
23
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 any loss (including, without
limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current
expectations, estimates and assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplated in 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 ZealandKi ng 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.

1H21 HALF YEAR FINANCIAL RESULTS

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1H21
NEW ZEALAND KING SALMON INVESTMENTS LIMITED AND
SUBSIDIARIES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
1

CONTENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Page
Corporate Information
3
Consolidated statement of comprehensive income
4
Consolidated statement of financial position
5
Consolidated statement of changes in equity
6
Consolidated statement of cash flows
7
Notes to the consolidated financial statements
8 - 14
2

NEW ZEALAND KING SALMON INVESTMENTS LIMITED AND SUBSIDIARIES
CORPORATE DIRECTORY
BOARD OF DIRECTORSBANKERSNEW ZEALAND KING SALMON
INVESTMENTS LIMITED
John William Dudley Ryder The Bank of New ZealandTicker: NZK
Independent Non-Executive ChairmanDeloitte CentreListed on the NZX Main Board and
Grantley Bruce RosewarneLevel 6, 80 Queen Streetas a foreign Exempt Listing on the
Chief Executive Officer and Managing DirectorAucklandASX
Jack Lee PorusNew ZealandNZ Company number: 2161790
Non-Executive Director
Paul James SteereAUDITORRegistered Office
Independent Non-Executive Director93 Beatty Street
Lai Po SingErnst & Young (EY)Annesbrook
Non-Executive DirectorLevel 4, 93 Cambridge TerraceNelson
Chiong Yong TiongChristchurch New Zealand
Non-Executive DirectorNew Zealand
Catriona MacleodPostal Address
Independent Non-Executive DirectorLAWYERSPO Box 1180 Nelson 7040
New Zealand
Audit and Finance CommitteeChapman Tripp
Paul Steere (Chair)Level 35, 23 Albert StreetTelephone
John RyderAuckland+64 3 548 5714
Jack Porus (Appointed 26 August 2020)New Zealand
Website
Nominations and Remuneration CommitteeGascoigne Wickswww.kingsalmon.co.nz
Paul Steere (Chair)79 High Street
Jack PorusBlenheimInvestor Relations
New Zealandinvestor@kingsalmon.co.nz
Health, Safety and Risk Committee
Catriona Macleod (Chair)Duncan Cotterill
Chiong Yong Tiong197 Bridge StreetSHARE REGISTRY
NelsonComputershare Investor
New ZealandServices Limited
Level 2, 152 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
+64 9 488 8777
enquiry@computershare.co.nz
Computershare Investor
Services Pty Limited
Yarra Fall
452 Johnston Street
Abbotsford VIC 3001
Australia
+61 3 9415 4083
enquiry@computershare.co.nz
3

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Note$000$000
Revenue from contracts with customers482,279 84,189
Cost of goods sold including fair value uplift at point of harvest(78,350) (74,830)
Fair value gain on biological transformation719,999 46,198
Freight costs to market(9,585) (7,671)
Gross profit
14,343 47,886
Other income454 94
Sales, marketing and advertising expenses(6,732) (6,609)
Distribution overheads(2,679) (2,213)
Corporate expenses(5,110) (5,148)
Other expenses(2) (64)
Earnings before interest, tax, depreciation and amortisation
274 33,946
Depreciation and amortisation expense(5,003) (4,431)
Finance income4 9
Finance expenses(1,147) (734)
(Loss) / Profit before tax(5,872) 28,790
Income tax credit / (expense)1,549 (8,024)
(Loss) / Profit after tax(4,323) 20,766
Other comprehensive income
Exchange differences on translation of foreign operations(596) 4
Movement on cash flow hedges20,737 2,821
Income tax effect of movement on cash flow hedges
(5,802) (790)
Share based payment expense85 164
Net other comprehensive income
14,424 2,199
Total comprehensive income10,101 22,965
UNAUDITEDUNAUDITED
Earnings per share31 Dec 202031 Dec 2019
Basic earnings per share
5
(0.03)$ 0.15$
Diluted earnings per share
5
(0.03)$ 0.15$
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
The above interim consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
4

INTERIM CONSOLIDATED STATEMENT OF FINANCIA L POSITION
AS AT 31 DECEMBER 2020
UNAUDITEDAUDITED
31 Dec 202030 Jun 2020
ASSETSNot e$000$000
Current assets
Cash and cash equivalents5,5817,115
Trade and other receiv ables14,75812,777
Inventories645,78335,612
Biological assets769,67781,784
Deriv ativ e financial assets105,734907
Total current assets
141,533138,195
Non-current assets
Property, plant and equipment60,90860,481
Biological assets718,22610,594
Deriv ativ e financial assets1020,5309,120
Deferred tax asset2,0443,303
Intangible assets9,0308,655
Goodwil l39,25539,255
Right-of-use assets87,0394,581
Total non-current asse
ts
157,032135,989
TOTAL ASSETS
298,565274,184
LIABILITIES
Current liabi lit ies
Trade and other payables17,46914,847
Employee benefit s3,3772,884
Borrowings92,6141,132
Lease li abilit ies1,5861,347
Ot her financial li abilit ies13233149
Deriv ativ e financial li abilit ies101,6963,868
Taxation payable5,3403,866
Total current liabi lit ies
32,31528,093
Non-current liabi lit ies
Employee benefit s711558
Borrowings946,00037,000
Lease li abilit ies5,5443,258
Deferred tax li abilit ies19,36918,436
Deriv ativ e financial li abilit ies102112,525
Total non-current liabi lit ies
71,83561,777
TOTAL LIABILITIES
104,15089,870
NET ASSETS
194,415184,314
EQUITY
Share capital12122,606122,606
Reserves17,4022,978
Retained earnings54,40758,730
TOTAL EQUITY
194,415184,314
Net tangibl e assets per share
Net tangible assets per share1.04$ 0.96$
Dire ctorDire ctor
23 February 202123 February 2021
The above int erim consoli dated statement of financial posit ion should be read in conjunction wit h the accompanying notes.
For and on behalf of the Board, who aut horised the issue of these financial statements on 23 February 2021
5

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
Share
Capital
Foreign
Currency
Translation
Reserve
Hedge
Reserve
Share Based
Payment
Reserve
Retained
Earnings
Total
Equity
UNAUDITED$000$000$000$000$000$000
Balance as at 1 July 2020
122,606(485) 2,58787658,730184,314
Profit / (loss) for the period- -
-
- (4,323) (4,323)
Other comprehensive income/(loss)- (596) 14,9358514,424
Total comprehensive income/(loss) for the period
- (596) 14,93585(4,323) 10,101
Dividends paid - ordinary- - - - - -
Balance as at 31 December 2020122,606(1,081) 17,52296154,407194,415
UNAUDITED
Balance as at 1 July 2019
122,595(639) (1,391) 57547,612168,752
Profit for the period- - - - 20,76620,766
Other comprehensive income/(loss)- 42,0311642,199
Total comprehensive income/(loss) for the period
- 42,03116420,76622,965
Dividends paid - ordinary- - - - (4,284) (4,284)
Employee share scheme loans repaid8- - - - 8
Balance as at 31 December 2019122,603(635) 64073964,094187,441
The above interim consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
6

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
$000$000
Operating activities
Receipts from customers80,067 81,016
Payments to suppliers(64,258) (52,820)
Payments to employees(21,131) (21,132)
Dividend received
- 43
Interest received4 9
Interest paid(773) (553)
Other income received- 308
Income tax paid(588) (4,831)
Net cash flows (to) / from operating activities
(6,679) 2,041
Investing activities
Proceeds from sale of property, plant and equipment- 3
Purchase of property, plant and equipment(4,399) (10,409)
Purchase of intangible assets(707) (28)
Net cash flow (to) / from investing activities
(5,106) (10,434)
Financing activities
Proceeds from borrowings10,482 12,000
Government grants received403 15
Payment of lease liabilities(634) (615)
Employee share scheme loans repaid- 8
Dividends paid- (4,284)
Net cash flows (to) / from financing activities
10,251 7,125
Net increase / (decrease) in cash and cash equivalents
(1,534) (1,269)
Cash and cash equivalents at 1 July
7,115 6,231
Cash and cash equivalents at 31 December
5,581 4,962
The above interim consolidated statement of cash flows should be read in conjunction with the accompanying notes.
7

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
1.CORPORATE INFORMATION
The Group has changed its balance date to 31 January following a Board resolution on 2 November 2020.
2.BASIS OF PREPARATION
a.Statement of compliance
b.Basis of measurement
c.Significant accounting judgements, estimates and assumptions
d.Covid-19
3.SEASONALITY
The interim financial statements of New Zealand King Salmon Investments Limited (the Company) and its subsidiaries (together the
Group) for the six months ended 31 December 2020 were authorised by the Directors on 23 February 2021.
Management have applied the same principles and used the same key sources of estimation in the preparation of the interim
financial statements as those applied in the consolidated financial statements for the year ended 30 June 2020.
New Zealand King Salmon Investments Limited is a profit-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 an FMC reporting entity under the Financial Markets Conduct Act 2013.
The interim consolidated financial statements are for the six months ended 31 December 2020 and have been prepared in
accordance with NZ GAAP.
The interim consolidated financial statements for the six months ended 31 December 2020 have been prepared in accordance with
NZ IAS 34 - Interim Financial Reporting and IAS 34 Interim Financial Reporting, and should be read in conjunction with the annual
financial statements as at 30 June 2020 which were prepared in accordance with NZ IFRS and IFRS.
The accounting policies adopted in the interim financial statements are consistent with those applied in the annual financial
statements as at 30 June 2020.
The interim consolidated financial statements for the six months ended 31 December 2020 are unaudited. Comparative information
for the interim consolidated statement of financial position is at 30 June 2020 and is audited. Comparative information for the interim
consolidated statement of comprehensive income, statement of interim consolidated changes in equity and interim consolidated
statement of cash flows is for the comparative six month period and is unaudited.
The Group is principally engaged in the farming, processing and sale of premium salmon products.
The consolidated financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand
($000), except when otherwise indicated.
Due to the rapid impact of the pandemic virus Covid-19 impacting significantly on finished stock holdings, the Group estimates the
net realisable value of inventory for obsolescence and unmarketable items at the end of the reporting period and then writes down
the cost of inventories to estimated net realisable value. The estimated net realisable value of the inventory is mainly determined
based on assumptions of future demand within a specific time horizon.
The Group's business is not considered to be highly seasonal. Sales and related costs vary from month to month with overall
variation considered to be immaterial. Mortality rates are typically highest in the January to April period due to higher water
temperatures at that time. This does impact on month to month profitability.
8

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
4.SEGMENT INFORMATION
Segment results
UNAUDITEDUNAUDITED
20202019
$000$000
Revenue82,27984,189
Segment EBITDA27433,946
UNAUDITEDUNAUDITED
Segment profit reconciles to profit before income tax as follows:
20202019
$000$000
Segment EBITDA27433,946
Depreciation, amortisation and impairment(5,003) (4,431)
Net finance costs(1,143) (725)
Group profit / (loss) before tax(5,872) 28,790
5.EARNINGS PER SHARE
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Earnings per share$000$000
Profit / (loss) attributable to ordinary equity holders (4,323) 20,766
# of Shares# of Shares
000000
Weighted average number of ordinary shares for diluted earnings per share138,986138,697
Basic earnings per share(0.03)$ 0.15$
Diluted earnings per share(0.03)$ 0.15$
6.INVENTORIES
UNAUDITEDAUDITED
31 Dec 202030 Jun 2020
Inventories$000$000
Raw materials13,0919,184
Work in progress5931,192
Finished goods32,09925,236
Total inventories45,78335,612
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Amount of inventories recognised as an expense in the statement of comprehensive income$000$000
Cost of inventories recognised as an expense69,911 74,036
Movement in net realisable value of inventory provision8,439 794
Total cost of goods sold including fair value uplift at point of harvest78,350 74,830
7.BIOLOGICAL ASSETS
UNAUDITED
Cost Fair valueTotal
Biological assets$000$000$000
As at 1 July 2020
53,70438,67492,378
Increase due to biological transformation
1
44,69724,43569,132
Decrease due to harvest
2
(34,444) (29,649) (64,093)
Decrease due to mortality
3
(5,077) - (5,077)
Changes in fair value
4
- (4,437) (4,437)
As at 31 December 2020
58,88029,02387,903
1
Biological transformation fair value is impacted by volume increases (net of mortalities) and fish size at reporting date relative to the target harvest weight of 4 kgs (proportional recognition).
2
Harvested fair value is included under cost of goods sold in the statement of comprehensive income and is calculated by multiplying the current years harvest (biomass) by the prior
years expected 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.
4
Changes in fair value are impacted by movements in margin primarily being changes in sales price and costs to sell (fish cost, harvest, processing and freight to market).
Basic earnings per share amounts are calculated by dividing the profit 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 assumes conversion of all potential ordinary shares in determining the weighted average number
of ordinary shares on issue.
For management purposes, the Group is organised into one business unit. 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 14 for detail of disaggregation of revenue by brand and geographical area.
The cost of inventories recognised as an expense for the period ended 31 December 2020 includes a fair value uplift at point of harvest of $13,445k (31 December
2019: $29,276k).
The Group has three hatcheries in the South Island and nine operational marine salmon farms in the Marlborough Sounds. The fish livestock typically grow for up to 31
months before harvest.
In FY20, the Group reviewed its 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 differentiated 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.
Prior year comparatives have been restated to respond to the change to a single operating segment.
9

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
BIOLOGICAL ASSETS (CONTINUED)
UNAUDITED
Cost Fair valueTotal
Biological assets$000$000$000
As at 1 July 201944,37033,86178,231
Increase due to biological transformation
1
43,50546,07289,577
Decrease due to harvest
2
(32,409) (30,252) (62,661)
Decrease due to mortality
3
(2,166) - (2,166)
Changes in fair value
4
- 126126
As at 31 December 2019
53,30049,807103,107
AUDITED
Cost Fair valueTotal
Biological assets$000$000$000
As at 1 July 201944,37033,86278,232
Increase due to biological transformation
1
84,12667,399151,525
Decrease due to harvest
2
(63,144) (59,312) (122,456)
Decrease due to mortality
3
(11,648) - (11,648)
Changes in fair value
4
(3,275) (3,275)
As at 30 June 2020
53,70438,67492,378
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Fair value gain / (loss) recognised in profit and loss$000$000
Gain arising from growth of biological assets24,43646,072
Movement in fair value of biological assets(4,437) 126
Total fair value gain on biological transformation19,999 46,198
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Harvested biomasstonnestonnes
Total live weight harvested for the period 4,7164,252
UNAUDITEDAUDITED
31 Dec 202030 Jun 2020
Estimated closing biomasstonnestonnes
Closing fresh water stocks154158
Closing seawater stocks6,7906,136
Total estimated closing biomass live weight 6,9446,294
Fair value measurement
Fair value risk and sensitivity
The Group is exposed to financial risks relating to the production of salmon stock including increasing climate change volatility, climatic events, disease and
contamination of water space.
The estimated unrealised fair value gain from cost at 31 December 2020 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 first six months of calendar year 2021. Changes in these assumptions will impact the fair value calculation. The realised profit which is
achieved on the sale of inventory will differ from the calculations of fair value of biological assets because of changes in key factors such as the final market
destinations and product mix of inventory sold, changes in price, foreign exchange rates, harvest weight, growth rates, mortality, cost levels and differences in
harvested fish quality.
Leaving all other variables constant a 15% increase/decrease in average future sales prices would have increased/decreased the fair value of biological assets on
hand and profit before tax by $17.4m (30 June 2020: 15% increase / decrease $19.4m) (excludes the impact of finished goods), while a 15.0% increase/decrease in
estimated future harvest volume would increase/decrease the fair value of biological assets on hand and profit before tax by $4.3m (30 June 2020: 15% increase /
decrease $5.8m).
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 fish is defined 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 fish commence their grow out cycle.
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 fish 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 fish harvested. The Group has insurance to cover some of the risks relating to the livestock.
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.
A 15% increase/decrease in estimated costs to sell would decrease/increase the fair value of biological assets on hand at balance date and profit before tax by $13.1m
(30 June 2020: 15% increase / decrease $13.6m). Changes in fish health and environmental factors may affect the quality of harvested fish, which may be reflected in
realised profit via both achieved sales price and production costs.
10

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
8.RIGHT-OF-USE ASSETS
Land &
Building
Motor
Vehicles
Plant &
Equipment
UNAUDITED
31 Dec 2020
AUDITED
30 Jun 2020
UNAUDITED000000000$000$000
Carring amount at 1 July 20203,1333541,0944,5814,446
Additions2,232139432,4141,304
Remeasurement88613- 899268
Depreciation for the period(494) (128) (233) (855) (1,437)
Carrying amount as at 31 December or 30 June
5,7573789047,0394,581
Cost 6,9076761,5979,1806,018
Accumulated Depreciation(1,150) (298) (693) (2,141) (1,437)
Carrying amount as at 31 December or 30 June5,7573789047,0394,581
9.INTEREST BEARING LOANS AND BORROWINGS
UNAUDITEDAUDITED
31 Dec 202030 Jun 2020
Current interest bearing loans and borrowings$000$000
Secured bank loans8797
Other borrowings2,5271,035
Total current interest bearing loans and borrowings
2,6141,132
Non-current interest bearing loans and borrowings
Secured bank loans46,00037,000
Total non-current interest bearing loans and borrowings
46,00037,000
10.FAIR VALUE OF FINANCIAL INSTRUMENTS
The following financial instruments of the Group are carried at fair value:UNAUDITEDAUDITED
31 Dec 202030 Jun 2020
Current derivative financial assets$000$000
Forward exchange contracts4,780599
Foreign exchange options954308
Total Current derivative financial assets
5,734907
Non-current derivative financial assets
Forward exchange contracts19,5518,361
Foreign exchange options979759
Total Non-current derivative financial assets
20,5309,120
Current derivative financial liabilities
Forward exchange contracts1301,684
Foreign exchange options51435
Interest rate swaps1,5151,749
Total Current derivative financial liabilities
1,6963,868
Non-current derivative financial liabilities
Forward exchange contracts321,642
Foreign exchange options179883
Interest rate swaps- -
Total non-current derivative financial liabilities
2112,525
Valuation methods
Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
All derivative financial 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 period ended 31 December
2020
The carrying value of the BNZ loan drawing of $46M 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 2022 and facility B ($20m) to 18 Oct 2023.
Financial instruments have been categorised into the following hierarchy and valued according to the following definitions, based on the lowest level input that is
significant to the fair value measurement as a whole:
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)
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 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
2022, 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, $20m of facility
B was drawn and $1m of facility C was drawn (30 June 2020 total: $37m). Subsequent to 30 June 2020 balance date, the financial covenants relating to interest
coverage and leverage ratios have been amended and are in place until 30 June 2021, and facility A extended to 18 October 2022. The Company also secured a
Business Finance Scheme Loan via BNZ for $5m that arose from the Government providing financial assistance following the pandemic virus Covid-19. At balance
date the Business Finance Scheme loan was fully drawn at $5m.
11

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
11.COMMITMENTS AND CONTINGENCIES
UNAUDITED
Capital commitments
Contingencies
Guarantees
12.CAPITAL AND RESERVES
UNAUDITEDAUDITED
Share capital31 Dec 202030 Jun 2020
Issued shares000000
Ordinary shares138,986 138,986
Total issued shares
138,986 138,986
UNAUDITEDAUDITEDUNAUDITEDAUDITED
31 Dec 202030 Jun 202031 Dec 202030 Jun 2020
Movement in ordinary share capital000000$000$000
As at 1 July138,986 138,571122,606122,595
Share issue for employee share scheme- 415-
Share issue recognised on repayment of employee loans- - - 11
As at 31 December or 30 June
138,986 138,986122,606122,606
Shares held as treasury stock1864
Total shares outstanding at 31 December or 30 June
138,800138,982
Reserves
Foreign currency translation reserve
Hedge reserve
Retained earnings
Share based payment reserve
000000000000000000
LTI 201729/09/2017*295- - (8) (287) -
LTI 201827/09/2018300- - (7) - 293
LTI 20195/11/2019451- - (181) - 270
Total share scheme
1,046 - - (196)(287)563
Share allocation price for share schemes
LTI 2017$1.22$1.77- -
LTI 2018$1.30$1.95$2.78-
LTI 2019$1.41$2.13- $2.20
Share schemeGrant date
30 June 2020
shares not
yet vested
New shares
issued to
custodian
Shares
forfeited to
treasury stockShares vested
31 December
2020 shares
not yet vested
* Fully vested in current year
Shares
allocated from
treasury stock
The estimated value of share options was determined using the Black-Scholes pricing calculator and is being amortised over the restrictive periods. The option cost is
treated as an employee expense with the corresponding credit included in the share based payment reserve. The inputs into the option pricing valuation model are the
share price of the Group at time of allocation and the compounded risk free interest rate.
Share scheme
The Group has entered into agreements to purchase plant and equipment. As at 31 December 2020 the total commitment is $1,653k (30 June 2020: $2,598k).
The share based payment reserve relates to one long term incentive (LTI) scheme and two employee share ownership schemes. All of these schemes involve the
Company making interest-free limited recourse loans to selected personnel to acquire shares in the Company. The employees must remain in employment for the
duration of the vesting or escrow periods before the employees receive the full benefit of share ownership subsequent to repayment of the loan balance remaining at
time of vesting.
The hedge reserve represents the unrealised gains and losses on interest rate swaps and foreign currency forward contracts that the Group has taken out in order to
mitigate interest rate and foreign currency risks, net of deferred tax.
Share Capital# of Shares
Employee
Group 4
The Group has a contingent liability at 31 December 2020 of $837k in respect of a fish transport contract requiring the Group to purchase three bulk tankers (including
modifications made in 2018 and 2020), should the fish transport contract be terminated early (30 June 2020: $784k).
Ordinary shares are fully paid with no par value. Each ordinary share has an equal right to vote, to participate in dividends, and to share in any surplus on winding up of
the Company. No dividend was declared nor paid during the period ended 31 December 2020 due to impact of the virus Covid-19, (31 December 2019: $0.02 paid on
20 March 2020).
The foreign currency translation reserve is used to record exchange difference arising from the translation of the financial statements of the foreign subsidiary.
Employee
Group 1
Employee
Group 2
Employee
Group 3
The group has three guarantee facilities at 31 December 2020 totalling $115k (30 June 2020: $115k).
Retained earnings represents the profits retained in the business.
12

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
13.RELATED PARTY DISCLOSURES
Subsidiaries
New Zealand King Salmon Investments Limited has the following trading subsidiaries.
SubsidiaryCountry of Incorporation
The New Zealand King Salmon Co. LimitedNew Zealand100%
New Zealand King Salmon Exports LimitedNew Zealand100%
The New Zealand King Salmon Pty LimitedAustralia100%
New Zealand King Salmon USA IncorporatedUnited States of America100%
Transactions with related parties
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Related party payments$000$000
Good and services purchased from other related parties266196
Total related party payments
266196
Related party sales
Goods and services sold to related parties(29) (1,975)
Total related party sales
(29) (1,975)
Sales to and purchases from related parties are made in arm's length transactions, both at normal market prices and on normal commercial terms.
UNAUDITEDAUDITED
Amounts owing to related parties
31 Dec 202030 Jun 2020
Current amounts owing to related parties$000$000
Other amounts owing to related parties233149
Total current amounts owing to related parties
233149
UNAUDITEDAUDITED
31 Dec 202030 Jun 2020
Amounts owing by related parties$000$000
Amounts owing by related parties37
Total amounts owing by related parties
37
UNAUDITEDUNAUDITED
Compensation of key management personnel of the Group
31 Dec 202031 Dec 2019
Key management personnel compensation$000$000
Short-term employee benefits996893
Share based payment expense85107
Post employment pension and medical benefits2848
Total key management personnel compensation
1,1091,048
At balance date Oregon Group Limited owned 40.02% (30 June 2020: 40.02%) and China Resources Ng Fung Limited owned 9.93% (30 June 2020: 9.93%) of the
shares in New Zealand King Salmon Investments Limited.
Sales to and purchases from related parties are made in arm's length transactions both at normal market prices and on normal commercial terms. The following
provides the total amount of transactions that were entered into with related parties for the relevant financial year:
The principal activity of The New Zealand King Salmon Co. Ltd is the farming and processing of salmon. The activity of New Zealand King Salmon Exports Limited,
The New Zealand King Salmon Pty Limited, and New Zealand King Salmon USA Incorporated is the distribution of salmon.
Equity Interest
13

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
14.DISAGGREGATION OF REVENUE
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Revenue by Product Group$000$000
Whole Fish
39,10941,989
Fillets, Steaks & Portions
16,12717,673
Wood Roasted
7,6946,478
Cold Smoked
14,46814,384
Other
4,8813,665
Total
82,27984,189
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Revenue by Brand$000$000
Ōra King30,24834,832
New Zealand King Salmon28,16329,724
Regal17,43514,229
Southern Ocean5,1524,769
Omega Plus1,281635
Total
82,279 84,189
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Revenue by Market$000$000
New Zealand35,76336,102
North America31,46030,772
Australia5,5115,263
Japan3,0933,060
China9322,234
Europe2,6391,862
Other2,8814,896
Total revenue
82,27984,189
15.EVENTS AFTER BALANCE DATE
UNAUDITEDUNAUDITED
31 Dec 202031 Dec 2019
Dividends declared after balance date:$000$000
- 2,780
- 2,780
The Group does not consider it practicable to provide a quantitative or qualitative estimate of the potential impact of Covid-19 outbreak, or any future outbreaks at this
time. The build-up of finished goods inventories follows a strategic decision to temporarily hold inventories until sales markets return to pre Covid-19 levels in up
coming months when inventories will be sold down. The Group continues its farming and processing operations under Level 1, and continues to pursue its strategy of
marketing its branded products across the range of customers, and markets and products. In the event of a Level 4 lockdown the Group anticipates being able to
continue to operate as an essential industry.
Sales net of settlement discounts to two major customers for the period ended 31 December 2020 accounted for $19,951k or 24% of total gross revenue, (31
December 2019 one major customer accounted for $9,619k or 11% of total gross revenue).
No interim dividend was declared in respect of the 6 months ended 31 December 2020, (31 December 2019: a fully imputed interim dividend of 2 cents was approved
on 26 February 2020 and paid 20 March 2020).
Interim dividend
14

---

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



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

contact@kingsalmon.co.nz

www.kingsalmon.co.nz

Results for announcement to the market
Name of issuer New Zealand King Salmon Investments Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
NZ$ Amount (000s) Percentage change
Revenue from continuing
operations
$82,279 (2.3) %
Total Revenue $82,279 (2.3) %
Net profit/(loss) from
continuing operations
($4,323) (120.8)%
Total net profit/(loss) ($4,323) (120.8)%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ nil
Imputed amount per Quoted
Equity Security
$ nil
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.04 $0.96
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
No interim dividend was declared in respect of the 6 months
ended 31 December 2020.
Authority for this announcement
Name of person

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

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

Date of release through MAP

24 February 2021

Unaudited financial statements accompany this announcement.