Seeka announces its 31 December 2020 result

1SEEKA LIMITED | ANNUAL REPORT 2020
2020
ANNUAL REPORT

ANNUAL REPORT 2020 | SEEKA LIMITED2
CONTENTS
1
From the Chairman and Chief Executive
13
Seeka's business
17
Sustainability report
23
2020 financial statements
67
Independent auditor's report
74
Corporate governance and disclosures
92
Directory

1SEEKA LIMITED | ANNUAL REPORT 2020
FROM THE CHAIRMAN AND CHIEF EXECUTIVE
It is our pleasure to provide you with this commentary on Seeka’s financial and operational performance for the year ended
31 December 2020. Without doubt, 2020 was the most challenging year since Psa impacted the kiwifruit industry.
This report provides details on the audited results for the 12 months, operational performance of our business segments, the
impact of Covid-19, health and safety, Seeka’s strategy, capacity and automation, the Seeka team, shareholder dividends and
business outlook.
Covid-19, drought, a change to kiwifruit clearance protocols and severe labour shortages created unprecedented operational
and financial challenges for our New Zealand and Australian businesses. While contending with additional costs from stringent
hygiene protocols, Seeka received no Government wage subsidy in 2020.
Despite the challenges, the Group successfully completed all harvests; an outstanding achievement by our people who continued
to provide an essential service as Covid-19 posed a very real threat to their health and the welfare of their whānau. Our people
responded with commitment and innovation, drawing together as a team to deliver a timely harvest to our growers and business
continuity to our stakeholders. This continued into the second half of the year with the New Zealand avocado and Australian
pear and apricot harvests. Seeka strives to provide our customers with a reliable supply of high-quality produce as we manage
challenges across our supply chain. For example, nearly every consignment of Seeka New Zealand avocados experienced
significant disruption.
Our teams continued to excel and their commitment and drive have delivered our shareholders and growers outstanding results.
The team focussed on getting the job done.
Seeka delivered a higher profit despite facing higher costs, a limited labour force and lower fruit volumes from summer drought.
The company lowered debt and maintained shareholder dividends, and our customers were delighted with the quality of our
produce.
Improving underlying financial performance is a key focus for the company.
Seeka continued to sell down Northland orchards and has sold and leased back three Australian kiwifruit orchards. Taking more
than 12 months to transact, the Australian sale realised profit, lowered debt and provides confidence to continue developing
Australian orchards.
Finally, by way of introduction, Seeka progressed initiatives that address the risks and opportunities of climate change. The
Board established a sustainability committee to work with management and develop actions and strategies to become a more
sustainable business. Seeka’s second annual sustainability report is included in this document with work underway to ensure
Seeka’s environmental, social and governance initiatives will be a feature of stakeholder reporting.

ANNUAL REPORT 2020 | SEEKA LIMITED2
Highlights
Key financial components of the 2020 financial year include:
–$251.5m revenue (previous corresponding period to December 2020 (pcp): $236.9m); up 6%.
–$15.2m profit after tax (pcp: $6.9m); up 120%.
–$16.3m profit before tax (pcp: $9.9m); up 65%.
–$42.9m EBITDA (pcp: $34.5m); up 24%.
–$375.4m of assets; up 2.0% from the pcp.
–$0.22 dividend paid per share or declared during the year.
–$77.9m net interest-bearing debt; a decrease of $38.9m from the pcp (33%).
–$28.2m sale and leaseback of three Australian kiwifruit orchards, the sale lowered debt and realised a $6.2m gain.
–$10.7m sales of Northland orchards for a realised $2.8m gain.
–$5.6m tax benefit from the reintroduction of tax deductibility of depreciation on buildings.
Key operational components include:
–Successful harvest and processing operations across New Zealand and Australia including kiwifruit, avocado, kiwiberry, nashi
and pears.
–Low fruit loss of New Zealand kiwifruit (Hayward conventional 1.25%, Hayward organic 0.38% and SunGold 0.90%) and
delivered industry-leading quality to Zespri.
–33.4m tray equivalents of kiwifruit packed by New Zealand post harvest (pcp: 33.5m).
–Incurred $3.1m of direct Covid-19 costs and an estimated $2.2m of productivity losses.
–Successful and timely completion of the harvest, despite extreme labour shortages.
–Disappointingly three serious harm injuries, two involving forklifts and one involving a tractor; corrective actions and traffic
management plans in place at all sites.

3SEEKA LIMITED | ANNUAL REPORT 2020
Financial performance
The following table outlines Seeka’s performance for the year.
New Zealand dollarsFY2020FY2019Change
Total revenue ($m)
$ 251.5 $ 236.9 6%
EBITDA

before impairments and revaluations ($m)
$ 42.9 $ 34.5 24%
EBIT ($m)
$ 24.3 $ 17.6 39%
NPAT ($m)
$ 15.2 $ 6.9 120%
Basic earnings per share
$ 0.52 $ 0.23 126%
Net bank debt ($m)
$ 77.9 $ 116.8 ( 33%)
Highlights across the business
Business highlights for the year include:
–The commitment and leadership shown by our people to complete successful kiwifruit harvests in New Zealand and
Australia despite the impact of drought, Covid-19 and labour availability,
–Seeka achieved excellent growth in its retail services business that improved financial performance,
–Excellent returns in the kiwiberry and avocado programmes,
–Australian orcharding operations had a pleasing improvement and,
– Successful sell down of Northland orchards and sale and leaseback of three Australian kiwifruit orchards.

ANNUAL REPORT 2020 | SEEKA LIMITED4
Review of operations
Financial
Revenue for the twelve months ended 31 December 2020 increased 6% to $251.46m (pcp: $236.87m). Consolidated earnings
before interest, tax, depreciation and amortisation (EBITDA) was $42.95m (pcp: $34.52m); up 24%. Profit before tax improved
by $6.42m (65%) to $16.28m and profit after tax improved by $8.27m (120%) to $15.15m.
These results include a number of gains from the continuing orchard sales along with significant improvements in Australian and
retail services operations.
Gains on orchard sales include:
–$2.8m from the sale of Northland orchards, and
– $6.2m from the sale and leaseback of three Australian kiwifruit orchards. The gain on sale is calculated under NZ IFRS 16
which considers leaseback commitment.
Results were impacted by:
–$3.1m direct costs of Covid-19,
–$2.2m from productivity losses and Covid-19-related constraints, and
–$5.0m from the estimated effects of the drought on Hayward production volumes.
Additionally, there was a deferred tax benefit of $5.6m from the reintroduction of tax deductibility of depreciation on buildings.
Net cash flow from operations totalled $26.35m, compared against $18.59m in the pcp.
Seeka received $43.04m in proceeds from properties held for sale (pcp: $44.53m) and invested $13.50m in property, plant and
equipment (pcp: $34.67m). In addition, Seeka invested $6.78m in long term leased orchards in New Zealand, $1.07m in orchard
developments in Australia and $1.00m in the Wai O Kaha Gold Landowners Limited Partnership. Working with the Provincial
Growth Fund and local hapū, this partnership is developing 40 hectares of Hayward orchards at Raukokore on the East Cape.
Net debt at 31 December 2020 was $77.85m (pcp: $116.79m) (bank loans less bank deposits); a decrease of $38.93m, driven by
the planned disposals of orchards held for sale. This reduction reflects our strategy of reducing bank borrowings used to acquire
Northland kiwifruit orchards and business from T&G, and Aongatete Coolstores Limited. Seeka continues to review its asset
holdings to ensure they are consistent with strategy and earn the cost of capital.

5SEEKA LIMITED | ANNUAL REPORT 2020
$191.32
$186.81
Total revenue
NZ$million
$24.76
$23.13
EBITDA
NZ$million
$10.39
$5.83
$203.71
$236.87
$251.5
$33.30
$26.22
2
$34.52
$42.95
$6.65
$6.88
$15.15
$7.42
2
Net profit after tax
NZ$million
$21.13
1
1. Excludes effect of 2017 insurance settlement on EBITDA and NPAT.
2. EBITDA and NPAT as reported 2018 pre implementation of NZ IFRS 16.
$7.30
1
201620172018201920202016201720182019202020162017201820192020
Key financial indicators

ANNUAL REPORT 2020 | SEEKA LIMITED6
New Zealand orchard operations
Orchard operations span from Northland through to the Coromandel, Bay of Plenty and East Coast, with orcharding covering the
growing of kiwifruit, avocado and kiwiberry on leased, long term leased, and Seeka-owned orchards. This business also provides
comprehensive orchard management and vine management services to orchard owners and develops orchards under contract
for landowners under long term leases, including in partnership with iwi.
12.98m trays of kiwifruit were grown in 2020, compared to 11.42m trays in the pcp. For the second year, Hayward volumes were
affected by drought, being down an estimated 0.5m trays. At an average 10,200 trays per hectare in 2020, Hayward yields were
below the five-year average of 10,800 trays per hectare. While we expect drought to become more common in the future, the
2021 outlook is an improvement in volumes and fruit size, particularly for Hayward.
Seeka also grew 1,041,677 kilograms of avocado (pcp: 732,000 kgs) and 171,750 kilograms of kiwiberry (pcp: 64,400 kgs).
Orchard operations revenue of $75.71m is up $3.29m from the pcp reflecting higher returns from Zespri, higher avocado returns
and the sale of a small amount of SunGold license.
EBITDA for the year totalled $5.44m compared to pcp $4.99m after paying higher labour and compliance costs.
Seeka has a strategy to continue investing in long term leases to secure supply, with fruit volumes set to increase as these
orchards reach maturity. This includes the $1m investment in the Wai O Kaha Landowners Limited Partnership in conjunction
with local Raukokore hapū and the Provincial Growth Fund. In addition, we are developing a new seven-hectare SunGold orchard
in partnership with Ngāti Pūkenga in Welcome Bay.
Orchard revenue and volumes
NZ$million, millions of class 1 kiwifruit trays
Orchard EBITDA
NZ$million
Orchard assets
NZ$million
1. EBITDA 2018 and orchard assets 2017 and 2018 reported pre implementation of NZ IFRS 16, with restated values in dark blue. 2016 comparatives are pre NZ IFRS 16.
11.16m
8.45m
10.68m
11.42m
12.98m
$5.64
$6.38
$3.42m
1
$4.21
$4.99
$5.44
$33.56
$29.69
$38.96
$54.18
$63.44
$47.89
$48.58
$52.83
$72.42
$75.71
201620172018201920202016201720182019202020162017201820192020
$3.5.50m
1
$27.79m
1

7SEEKA LIMITED | ANNUAL REPORT 2020
New Zealand post harvest operations
Post harvest operates eight major facilities spread throughout the major growing regions in the North Island, and handles all
produce from our orcharding operations and from our independent growers.
In 2020, Seeka packed 33.4m trays of kiwifruit (pcp: 33.5m), down on expectation as drought impacted volumes by an estimated
2.4m trays, along with a loss of supply as new maturity protocols caused a short-term harvest rush whereby the volumes of fruit
deemed mature for harvest outstripped our capacity over a short period. Post harvest packed 760,000 trays of avocados and
82,000 trays of kiwiberry as well as contract packing citrus and blueberries in Kerikeri.
Post harvest revenue of $140.09m is similar to last season (pcp: $140.11m) reflecting a shorter storage year and selling season.
Costs increased from Covid-19 protocols, lower than expected volumes, and higher wage rates. EBITDA of $41.87m, while up on
the pcp’s $40.98m, is down on expectation.
Post harvest revenue and volumes
NZ$million, millions of kiwifruit trays
Post harvest assets
NZ$million
Post Harvest EBITDA
NZ$million
1. Excludes effect of 2017 insurance settlement on EBITDA.
2. EBITDA 2018 and post harvest assets 2017 and 2018 reported pre implementation of NZ IFRS 16. 2016 comparatives are pre NZ IFRS 16.
32.44m
25.68m
31.41m
33.46m
33.40m
$26.78
$21.96
$32.10
2
$37.16
$40.98
$41.87
$23.16
1
$111.72
$147.44
$165.40
$222.89
$232.74
$110.82
$96.70
$123.81
$140.11$140.09
201620172018201920202016201720182019202020162017201820192020
$144.48
2
$125.13
2

ANNUAL REPORT 2020 | SEEKA LIMITED8
New Zealand retail services operations
Includes the supply, export and sale of avocados, kiwiberry and class 2 New Zealand kiwifruit, sale of New Zealand kiwifruit
through collaborative programmes, operation of the New Zealand wholesale marketing business including imported tropical
fruits, and the manufacture and sale of Kiwi Crush and avocado oil.
A remarkable increase in revenue was achieved with a total of $21.80m compared to pcp of $12.30m (up 77%).
EBITDA of $3.00m is 79.6% up on the pcp’s $1.67m. This was achieved from a sound strategy and good execution of the plan.
Momentum continues to build with vibrant leadership, dedicated staff, great customer relationships, and high quality produce.
Australia operations
Seeka Australia Pty Limited, a 100% Seeka-owned company, leases and operates kiwifruit orchards, and owns and operates
nashi and pear orchards along with associated post harvest facilities in Victoria, directly marketing Seeka’s Australian produce
domestically and to export customers.
Kiwifruit yields were lower than expected following a very hot and dry summer which impacted fruit size. The kiwifruit business,
however, remains profitable. Green nashi sales returned to profitability as Seeka balanced supply to demand. Seeka sold its first
crop of the exciting new Ricó pear variety in 2020.
Total revenue for the year of $13.06m compares to pcp of $11.59m. EBITDA of $7.44m includes a $6.18m gain on sale of
Australian kiwifruit orchards. This delivered operational EBITDA of $1.26m which compares against negative $0.63m in the pcp.
The gain on sale is calculated in accordance with NZ IFRS 16 which takes into account the future lease liability with the sale price
much higher than the asset’s historical carrying value.
A tremendous job by our Australian team has made the business profitable. They executed a strategy that supplied profitable
product lines and delivered our customers excellent produce.
The sale of the mature kiwifruit orchards for AU$26.5m has reduced debt and yielded profit. Seeka has a further 63 hectares of
kiwifruit in development and a further 11 hectares of Ricó pears coming into production, and are trialling exciting new nashi pear
varieties.
Seeka remains positive about its Australian investment strategy.
Avocados and kiwiberry positive highlights
Seeka continues to build its emerging categories of kiwiberry and avocado. These varieties positively contribute to Seeka’s
earnings while delivering competitive returns to growers.
82,000 trays of kiwiberry were successfully harvested and marketed directly and in collaboration with Freshmax. Grower orchard
gate returns averaged an estimated $220,000 per hectare with the highest return over $320,000.
Likewise, Seeka’s avocado business continues to grow delivering supplying growers a premium return for their crop, while lifting
shareholder returns by utilising plant and equipment outside of the kiwifruit season.
These categories are sold under the Seeka brand, which is building a solid reputation for quality. Seeka is creating retail consumer
demand that generates superior returns to our growers.

9SEEKA LIMITED | ANNUAL REPORT 2020
Impact of Covid-19
Seeka proactively prepared for Covid-19 with a response committee formed prior to harvest and lockdown. The committee
included senior operational and support managers who prepared and executed mechanisms to ensure the safety of our people.
Actions included moving workers sourced from overseas through the recognised seasonal employer (RSE) programme to less
densely populated accommodation facilities. Quarantine facilities were established to house overseas workers who may have
Covid-19 like symptoms to separate them from others; this provided an excellent buffer when the normal winter flu symptoms
arrived.
When a manager of a third-party local accommodation facility was confirmed as Covid-19 positive, Seeka transferred people to
Seeka's quarantine facility until they tested negative. Seeka worked closely with the health professionals managing the Covid-19
response. The committee also sourced items including masks, gloves, sanitiser and thermometers well ahead of lockdown along
with protocols to achieve physical distancing and temperature monitoring.
Seeka’s packhouses and sites were established as “bubbles” with a total ban on personnel moving between facilities. Should
Seeka face a lockdown again, these procedures will be reinstated. The response committee continues to meet regularly and is
ensuring full preparedness for the coming 2021 harvests.
Covid-19 meant many of our experienced overseas workers were unable to return to New Zealand. The number of RSEs in New
Zealand and able to work further reduced as we responsibly aided their return once their work programme completed and they
requested to return home. We facilitated repatriation flights on their behalf. The number of continuing RSE workers for 2021 is
critically low. Seeka expects to have 460 RSEs for 2021 compared to a normal complement of 1180.
Seeka is operating a recruitment programme to attract New Zealanders to orchard work. Collaborating with the Ministry of Social
Development, the Ministry of Primary Industries, Te Arawa and Ngāti Hine, our training and induction programme is helping
interested people become “employment ready”. We are making every effort to fill the seasonal workforce, delivering training
on the available work, safety practices, well-being assessments, and skill-based training including forklift driving. This initiative
complements our long-standing orchard and post harvest cadet pathway.
Labour costs are expected to increase 18% in 2021, impacting orcharding and post harvest costs.
We worked to proactively ensure all our people were safe and in addition to our ongoing traffic management plans and guarding
upgrades we rolled out new Covid-19 protocols, including:
–New access and egress processes ensure physical distancing,
–New temporary tearooms,
–Access to gloves, masks and hand sanitiser,
–Strict 24-hour cleaning regime across all sites,
–Work bubbles with personnel prohibited from travelling between facilities,
–Limited site access from contractors and outside personnel,
–Developed and deployed screens to ensure two metres of separation on all packing lines, and
– Seeka’s wholesale markets continued to operate as an essential service, with strict physical distancing protocols.
Seeka estimates Covid-19 added $5.3m of costs to harvest 2020; $3.1m of direct Covid-19 operating costs plus $2.2m from
volume loss due to extraordinary productivity constraints.

ANNUAL REPORT 2020 | SEEKA LIMITED10
Health and safety
This season's lockdown placed significant load on our safety programme, which was exacerbated by the severe shortage of
people. Seeka took all efforts to ensure that we kept our people safe and invested in their safety. We focus on continuous
improvement to ensure the health and safety of all personnel at all locations, with all reported incidents and near-misses
investigated. We reviewed and improved traffic management systems, installed new barriers at post harvest sites, rolled out new
fatigue-management systems, and invested in machine guarding. Forklifts are now largely segregated from post harvest areas
with foot traffic. Seeka has reviewed its tractor fleet and purchased 30 new tractors for 2021 harvest operations at a cost of over
$1m.
Disappointingly, after lockdown ended there were two post harvest serious harm incidents involving forklifts, and one in orchard
operations involving the loading of a tractor for transportation. These impacted the severity rate in the period. All incidents were
reviewed, including independent review of the post harvest incidents, as the company relentlessly drives for a safer environment.
Seeka continues to refine its safety focus.
The following table shows key safety measures against annual thresholds.
2020 Target2020 Actuals
Total recordable injury frequency rate

Less than 4.5
4.5
Notifiable injuries
03
Notifiable injuries including incidents
13
Severity rate Less than 4.5
11.4
The total recordable injury frequent rate (TRIFR) measures the number of injuries per 200,000 hours worked.
Severity rate measures the average number of days that an injured person is away from work. Seeka had 3 notifiable injuries in 2019.

11SEEKA LIMITED | ANNUAL REPORT 2020
Strategic highlights
While continuity of operations was the major focus throughout the lockdown, Seeka was able to make significant strategic
progress in 2020. Kiwifruit is our core product, with the company diversifying geographically and targeting complementary
produce categories. The focus is on growth that delivers accretive value to our stakeholders, including shareholders, growers,
employees, contractors and community. We work to deliver our marketers, principally Zespri, the highest quality fruit and deliver
our growers great returns through our supply chain.
Seeka has excelled where it operates the entire value chain from the orchard to the customer and delivered incremental
returns to growers; as demonstrated by avocados and kiwiberry. We deliver orchard-to-market excellence in New Zealand
kiwifruit, avocados, class 2 kiwifruit, and kiwiberry, along with Australian kiwifruit, nashi and European pears, and have achieved
an excellent improvement in the operational and financial performance of our New Zealand retail services and Australian
businesses.
Seeka has focussed on consolidating its position, refining its management structures, and selling orchards with secure supply
contracts to reset debt while pursuing operational excellence.
The company has focussed on asset utilisation and capacity planning and has substantially built the infrastructure to handle the
anticipated immediate volumes. Seeka has deliberately positioned itself in Northland to provide excellent service to the region’s
growth in avocados and kiwifruit and has increased its avocado market share.
Capacity and automation
Analysis of future crop volumes indicate that Seeka has sufficient post harvest capacity for the 2021 and 2022 seasons,
with additional capacity required for 2023. The company is evaluating options for capacity expansion and is considering the
development of a new post harvest complex on the Pukenga Orchard in Young Road, Te Puke. The Board is expected to consider
this investment mid-year with any construction occurring in 2022.
Seeka continues to evaluate and deploy automation and information systems to drive efficiency, including in-shed automation
technology that reduces labour. New on-orchard scanning technology is providing an exciting opportunity to improve on-orchard
efficiency and reduce costs. By providing accurate measurements, the technology will improve winter pruning, crop optimisation
and crop estimation.
The Seeka team
We are very proud of the performance and commitment of all employees in what was a challenging year both operationally and
personally for everyone.
We have a clear strategy to be the employer of choice in a tight labour market. The company has increased wages and continued
to implement competitive remuneration levels. Talent development is one of our key platforms and we have created new joint
ventures to recruit and train New Zealanders to work in our industry.
Seeka actively sources New Zealand workers to fulfil peak seasonal labour demand and operates in parallel a RSE programme
that delivers focussed pastoral care for our overseas’ workers. Of our 3,500 strong seasonal workforce, 1,073 were scheduled to
come from overseas via this scheme. Seeka remains engaged with the New Zealand Government, noting that even with higher
domestic unemployment there remains insufficient local seasonal labour to safely undertake the harvests.

ANNUAL REPORT 2020 | SEEKA LIMITED12
Dividend
A dividend of $0.12 per share has been declared by the Board. The dividend is fully imputed and will be paid 30 March 2021 to
all shareholders on the register at 5pm on 5 March 2021. The dividend reinvestment plan will apply with a 2% discount to the
strike price. The total dividends distributed or declared in the 12 months to 31 December 2020 is $0.22 per share (12 months to
31 December 2019 - $0.24).
Outlook
Seeka remains focussed on delivering its strategy to deliver incremental earnings and returns to both shareholders and growers.
Lifting the base business operating profits is one of our strategic platforms. While kiwifruit is Seeka’s foundation crop, the
company also has a growing fruit bowl including avocados, kiwiberry, nashi and European pears across New Zealand and
Australia. We are a growth company and we continue to focus on profitable growth.
Additional capacity is required for the 2023 season with key investment decisions to be made in 2021.
Summary
We are proud of how the company has performed in an unprecedented, challenging environment. Covid-19 tested the resilience
of our people, but with their dedication and leadership the Seeka team and our community got the job done.
The company is responding to a changing climate and environment by the creation of a Board sustainability committee and
targeted initiatives intended to "Grow a Better Future", as detailed in the sustainability report.
Seeka ends the year having achieved a record profit, maintained dividends and significantly lowered debt. We are ready and
prepared to continue our growth journey knowing that lifting base profitability is a key strategic platform.
We thank all growers, shareholders and stakeholders for the loyalty and support you willingly give to Seeka.
Fred Hutchings Michael Franks
Chairman Chief executive

13SEEKA LIMITED | ANNUAL REPORT 2020
Seeka's business
Delivering an essential service

ANNUAL REPORT 2020 | SEEKA LIMITED14
ORCHARD-TO-MARKET PRODUCE HANDLER
Seeka’s works to supply premium, healthy produce to international
consumers. We’re a cornerstone handler of New Zealand-grown kiwifruit,
and also supply significant volumes of New Zealand avocado and kiwiberry.
We’ve also expanded our operations in Australia where Seeka is that
country’s largest producer of kiwifruit and nashi.
Our services and our clients
Seeka’s core product is kiwifruit, our core operation is post harvest services,
and our core clients are orchard owners. We handle a fifth of New Zealand’s
annual kiwifruit crop, and charge our clients a per-tray fee to grade, pack,
coolstore and send their crop to the port for export.
Seeka also helps our clients by managing their orchards at cost plus a per-
hectare fee, or we may lease their orchards, in which case Seeka owns the
crop and shares the profits of fruit production. Seeka also develops orchards
on long-term leased land, owns these orchard investments for the duration
of the lease, and shares profits of fruit production with the landowner.
Each season, Seeka’s orchard management, leasing, and long-term leases
produce around 8% of the national crop, and help secure product for our
core post harvest business.
While New Zealand kiwifruit exports beyond Australia are managed by
the industry-regulated marketer, we’re optimising our clients’ returns
through our New Zealand and Australian sales programmes. Each season
we market around 5% of kiwifruit produced on our New Zealand clients’
orchards and collect a commission on market returns.
Expanding our product range
Our business works along the supply chain from orchard to market, and
we’re a key service provider in the large North Island horticulture regions.
We’ve expanded our operations and added revenue streams by servicing
the fast-growing avocado sector and the niche kiwiberry market. Seeka
provides the same integrated orcharding, post harvest and retail services
to our avocado and kiwiberry orchard clients, with one key difference;
Seeka markets all avocado handled by our business, and half of our clients’
kiwiberry crop. All produce is Seeka branded and sold in Australia, Asia and
in New Zealand’s domestic market.
We’ve leveraged our expertise in supply chain management to import and
condition tropical fruits for New Zealand retailers, and recover avocado oil
and the digestive aid Kiwi Crush from process-grade fruit.
Expanding our geographical reach
With Australia the key market for our New Zealand-grown kiwifruit,
avocado and kiwiberry, Seeka has grown our Australian service by
producing kiwifruit, nashi and European pears on Seeka-owned and leased
orchards in Victoria, Australia. Seeka brands and markets its Australian
produce to the Australian domestic market with export channels to Asia
and Europe, collecting all market returns.
Seeka handles 20%
of New Zealand's $2b
kiwifruit export industry
Along with kiwifruit, we also
produce, market and export
avocado and kiwiberry
Seeka is also a large Australian
producer where we directly
market all our fruit
And we pack and
coolstore 20%
And we market 5% of
the kiwifruit we handle,
exporting to Australia
and selling domestically
Kiwifruit
Other fruit
Nashi
European
pears
We're a niche
producer and
marketer of New
Zealand kiwiberry
Seeka directly markets
all avocado produced by
our orchard clients
Seeka grows 8% of the
national kiwifruit crop
NZ fruit
volumes
marketed by
Seeka
Australian
fruit volumes
produced by
Seeka

15SEEKA LIMITED | ANNUAL REPORT 2020
Reporting on our performance
As a fully-integrated produce handler, Seeka works across the full supply chain from point of production to point of sale. To
provide stakeholders with clear insights, we report on the operational and financial performance of each of the three key stages
of our New Zealand supply chain. We also report on a fourth New Zealand segment comprising our corporate enabling services
and a fifth operating segment that covers all operations and produce from our Australian orchards.
–Orchard operations – Seeka’s New Zealand crop production services
–Post harvest operations – Seeka’s New Zealand picking, packing and cool chain supply services
–Retail services – domestic marketing of New Zealand and imported produce, plus export programmes to Australia and Asia
–All other segments New Zealand – Seeka’s enabling corporate support services
–Australian operations – the production, handling and retailing of Seeka’s Australian-grown produce
Orchard operationsPost harvest operationsRetail services
Operations
Grow 40% of the crops we handle
• 15% from leased orchards
• 25% from managed orchards
Grade, pack and coolstore 100%
of the crops we handle
Retail 6% of the crops we handle
• 5% of kiwifruit handled
• 100% of avocado
Revenue
$75.7m$140.1m$21.8m
Source
Leased and long-term leased orchards
• Costs plus profit share
Managed orchards and vines
• Costs plus management fee
Service fee per unit handled
• Grading and packing
• Coolstorage and loadout
Sales commission
Service fee for imported produce
Processing fees
Drivers
Orchard yields ( all leased orchards )
Tray returns ( all leased orchards )
Orchard yieldsOrchard yields
Market returns
Assets
$63.4m$232.7m$12.4m
Invested in
Growing crops ( all leased orchards )
Developing orchards ( long term leases )
8 facilities with 11 graders
Coolstores and land
VLS laboratory
Auckland and Christchurch
facilities
Te Puke processing facility
BULK FRUIT
PACKAGED FRUIT
ORCHARDS
POST HARVEST
All other segments New ZealandAustralian operationsSeeka Group total
Operations
Enabling corporate support servicesGrow, handle and retail Seeka’s
Australian produce
Revenue
$0.8m$13.1m$251.5m
Source
Other incomeProduce sales
Assets
$19.7$47.2m$375.4m
Invested in
Corporate infrastructure
Assets held for sale
160 hectares of owned orchards and crops
114 hectares of crops on long-term leased orchards
Packhouse and coolstore facility

ANNUAL REPORT 2020 | SEEKA LIMITED16
Operating assets statistics
Retail services
Auckland
Imported produce, ripening services,
wholesale market
Christchurch
Imported produce, ripening services
Delicious Nutritious Food Company
Food manufacturing; Kiwi Crush, Kiwi Crushies,
Kiwiberry handling, Avocado oil
Laboratory services
VLS
Maturity and coolstore testing
Head Office
Seeka360
Grower centre
11
12
13
14
15
1, 2, 3, 4, 5, 6, 13, 14, 15
7
8
12
11
9, 10
Post harvest facilities
1
Oakside
Compac Oakside 1
Compac Oakside 2
Compac Oakside 3
2
Transpack
Compac
3
KKP
Lynx
4
Huka Pak
MAF Roda
Compac
5
Main Road
Compac
6
Aongatete
Compac
7
Peninsula
Lynx
8
Kerikeri
Compac
9
Australia
Compac
Orchards
1
Seeka Australia
Seeka-owned orchards and land Hectares
In production ( 3 orchards ) 78
In development 82
Undeveloped land 216
Australian long term lease orchards
In production ( 3 orchards ) 100
In development 14
Owned - New Zealand
Orchards owned and managed by Seeka
In production ( 6 orchards ) 18
In development 3
Long term lease - New Zealand
Orchards developed on leased land
In production ( 16 orchards ) 112
In development 73
Leased orchards - New Zealand
Orchards leased from owners
In production ( 97 orchards ) 365
In development 8
Managed orchards - New Zealand
Orchards or vines managed for owners
In production ( 182 orchards ) 777
In development 67
10
1. New Zealand orchard hectares are as at 31 December 2020.

17SEEKA LIMITED | ANNUAL REPORT 2020
Sustainability report
ESG Report 2020

ANNUAL REPORT 2020 | SEEKA LIMITED18
SEEKA SUSTAINABILITY REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Sustainability focuses on meeting present needs without
compromising the ability of future generations to meet their
needs. Sustainability is composed of three pillars; economic,
environmental and social. Seeka’s ambition is to measure then
incrementally improve our environmental and social performance
and the associated governance processes.
We aim to be an industry leader on reporting the impact of
climate change and focus our operations to minimise our
environmental footprint. We know that the environment plays a
pivotal role in the health of our crops, and our business.
We are founded on relationships and are serious about our social
responsibilities. We operate so our grower clients can provide
global consumers with healthy food choices. We want to be
the provider and employer of choice, and we know that strong
communities play a pivotal role in the health of our business.
Governance
In 2020, Seeka established a Board sustainability committee
tasked with providing strategic guidance and feedback to the
Board and management on Seeka's sustainability framework,
targets, measures, and performance. Comprised of three
directors, Seeka’s sustainability committee is a forum for
assessing and providing advice on the potential impacts and
opportunities of a changing climate.
Environmental and social strategy
Intelligent growth and commercial nous underpin our shared
prosperity. We embrace and care for our environment, those
contributing to the journey and our communities.
Set by the Board, Seeka’s strategic direction is based on the
sustainable production and supply of healthy produce.
Environmental sustainability lies at the heart of Seeka’s brand
attribute Growing Futures; our process of continually improving
operations to deliver healthy produce, use less resources, care for
the environment, and deliver better outcomes to our stakeholders.
Social responsibility lies at the heart of Seeka's brand attribute
Founded on Relationships; we value the connections to our
communities and we care for the welfare of our clients,
employees, investors and the regions we operate in.
Environmental report
We established the Seeka Agile Sustainability Team (SAST)
to develop our sustainable culture. Connecting passionate
people from across the company, SAST is working to integrate
sustainability into the hearts and souls of our employees and
deliver projects that reduce Seeka’s environmental footprint.
Climate change is an active risk, impacting the yield, quality
and marketability of the produce we handle. By disclosing our
climate-related risks, stakeholders can see how we are flexing our
operations as we prepare our business to mitigate the risks and
embrace new opportunities.
We mapped our operations to identify and understand the
inputs we rely on for production, how they flow through our
business, and the waste outputs that impact our environment.
We are working to transition to a circular model whereby waste
is circulated back into our operations, thereby reducing our
environmental footprint.










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CO2 CYCLE
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RECYCLING
CARBON SINKS
GREY WATER
REUSE
Operations input and output map

19SEEKA LIMITED | ANNUAL REPORT 2020
Risk and opportunity analysis
The Ministry for the Environment studied how climate change may impact New Zealand. Based on their report, we expect our
orcharding regions will be impacted by higher temperatures, changing moisture levels and weather patterns, and rising sea levels.
Key
Drier
–Decreased annual rainfall
–Decreased run-off to rivers
–Increased evaporation
–Increased frequency and
severity of droughts
–Increased irrigation demand
Wetter
–Increased precipitation
–Increased intensity in
weather events
–Increased flooding
–Increased slips
–Increased soil erosion
Coastal
–Sea level rise
–Increased storm damage
–Coastal inundation
–Increased coastal erosion
Ex-tropical cyclones
–Increased intensity - wind,
waves, storm surge and
rainfall
Wind
–More north-easterlies in
summer and autumn -
especially in the North
Northland
– Higher temperatures
– Drier conditions
– More instances of
drought
– Rising sea levels
Bay of Plenty and
Coromandel
– Higher temperatures
– Increased precipitation
– More frequent weather
events
– Rising sea levels
East Coast
– Higher temperatures
– Drier conditions
– More instances of drought
– More intense weather
events
– Increased coastal erosion
– Rising sea levels

ANNUAL REPORT 2020 | SEEKA LIMITED20
Risks and opportunitiesImpactResponse
Transition risks
New national or international
policies that restrict chemical
inputs used for pest management
and maintaining crop yields.
Higher R&D costs to
find alternative growing
methods.
Active involvement in industry associations, including KGI, ISG and KSG.
Build closer relationships with regional councils and regulators.
Invested in a worm farm pilot project to test a circular regenerative system within
our orcharding business.
Transition to a low input system, while achieving consistent yields.
Introduction of carbon costing or a
carbon tax that charges for carbon
usage.
Higher costs to offset
carbon emissions.
Measure our carbon footprint to understand and reduce our carbon impact.
Transition to lower Global Warming Potential (GWP) coolstore gases.
Invest in lower carbon emission projects, see Carbon Reduction Initiatives.
Introduction of orchard water
restrictions, with water vital for
crop growth over the summer
period.
Unable to irrigate to grow
an optimum crop.
Actively engage in orchard water management.
Work with councils to understand impacts on waterways.
Ensure new developments can access water and have on-site storage.
Physical risks
Yield reduction or plant damage
from flooding, hail, drought,
storms, fire, or a sub-optimal
growing climate (temperature,
sunshine, drought, winter chill).
Lower yields and
unprofitable orchards.
Geographical spread of orchards.
Invest in crop protection measures (e.g. frost protection, irrigation, shelter).
Access to reliable weather and frost forecasts (extended and long range).
Favour developments with reliable water supply and free drainage.
Orchard loss from rising sea levels.Increase in non-viable
orchards.
Orchard reporting by altitude.
Minimum altitude for all new orchard developments.
Introduction of new pests and
diseases.
Reduced yields or
unsaleable crops.
Geographic separation of orchards.
Orchard hygiene programme.
Independent pest monitoring programme.
Spray and pest control programme.
Bio-security controls on disease and disease vectors.
Water availability and quality
concerns.
Water unavailable or
unsuitable for irrigation.
Actively engage in orchard water management.
Develop wetlands and support native wildlife sanctuaries.
Monitor waterways and encourage orchard environmental plans.
Capture rainwater from facility roofs to reduce regional water demand.
Elevated soil CO
2
levels alter fruit
sugar and nutrient levels.
Crops have a different
quality profile.
Understand how soil carbon levels impact fruit nutrient levels.
Establish orchard management practices that best capture fruit quality.
Opportunities
Increased demand for Seeka
produce as a healthy eating option
with a low carbon impact.
Increased product
demand and new markets.
Ensure we are an industry leader in carbon reporting.
Report our carbon footprint to our stakeholders and commit to targets.
Green financing for low-carbon
developments.
Better funding at lower
interest rates.
Engage with bankers on green funding and green bonds.
Investigate low-carbon investments.
Higher soil CO
2
levels improve
water use efficiency.
Plants require less water
to produce a crop.
Understand soil carbon levels and water usage.
Establish orchard management practices that best capture carbon in the soil.

21SEEKA LIMITED | ANNUAL REPORT 2020
Our 2021 environmental work programme
Scenario analysis – understanding how a changing
climate impacts fruit production
Scenario analysis is underway to gauge how higher temperatures,
reduced water availability and rising sea levels may impact New
Zealand orchard production.
By understanding how a changing climate may impact crop
loads and quality, Seeka can prepare our operations to provide an
efficient, sustainable service to our grower clients and a reliable
product supply to the international consumer.
Carbon footprint – measuring and setting targets
Seeka is committed to lowering our carbon footprint and we have
aligned with Government targets under the Paris Agreement
intended to limit global temperature increases to 1.5°C to 2°C.
The primary mitigation tool is the reduction of greenhouse gas
emissions. Seeka is currently quantifying our emissions using the
Ministry for the Environment’s Guidance for Voluntary Greenhouse
Gas Reporting, which scopes emissions into three categories:
–Scope 1 covers direct emissions from Seeka-owned or
controlled sources.
–Scope 2 covers indirect emissions from generating electricity
that Seeka directly uses.
–Scope 3 includes all other indirect emissions that occur along
Seeka's value chain.
We are calculating our emissions for 2019 and 2020 using ISO
14064-1: 2018 Greenhouse Gases and the Greenhouse Gas Protocol
(ghgprotocol.org), with our calculations being verified by a market
leader in carbon footprint measurement. Once completed we can
quantify our carbon-reduction targets.
Hybrid vehicle fleet
Seeka is encouraging hybrid selection by
transitioning our lease vehicle fleet to include
hybrid options in all vehicle classes while
dramatically reducing conventional options.
2021 goal is to have hybrids accounting for
20% of lease vehicle renewals
Worm farm
Seeka piloted an in-house worm farm in 2020.
In full production, Seeka's continuous-flow
worm farm is expected to divert 50 tonnes
of packhouse organic waste from landfill to
vermicompost, delivering a regenerative, fully-
circular approach to orchard production.
2021 goal is to ramp up throughput ready for
full worm farm production in 2022
Solar energy
In 2018 Seeka installed solar panels at the
Seeka 360 head office. The panels generate
about 30% of office power usage at the middle
of the day. They also feed batteries which
supply back-up energy in the event of a power
outage. By December 2020, the panels have
generated 74MWh of electricity.
2021 goal is to investigate solar alternatives for
our post harvest facilities
LED lighting
Seeka is investigating packhouse LED lighting
and sensors. Electricity is one of Seeka’s largest
inputs. A reduction in electricity use will reduce
our carbon footprint and operational cost.
2021 goal is to trial LED lighting sensors
Waste audits
Seeka has developed a waste audit programme
to identify, measure and report the volume
and type of waste produced by our operating
business units. Waste reduction plans are
being developed at a business unit level. The
first waste audit was undertaken at head office
and a waste reduction plan is currently under
development.
2021 goal is to complete and monitor head
office's waste reduction plan and scope
orchard and post harvest operations
Regenerative horticulture
Seeka is researching soil types and practical
ways to incorporate regenerative horticulture
practices. This includes new mowing and
spraying protocols that allow orchards to
naturally retain higher carbon and water levels.
2021 goal is to foster regenerative horticulture
by sharing findings with our grower community
LED
Carbon reduction initiatives
As we work to measure our emissions, Seeka has already embarked on a series of carbon-reduction initiatives.

ANNUAL REPORT 2020 | SEEKA LIMITED22
Social report
Seeka's responsibility to support healthy communities was central
to the 2016 rebrand that expressed our growth into new products,
new regions and new communities.
With Select Excellence we defined our business model as striving to
continually improve our performance for our stakeholders; to deliver
an excellent service that supports healthy communities. By delivering
excellence, we offer our stakeholders choice when selecting a
partner that cares for their economic and social wellbeing.
Our social responsibility covers five overlapping categories:
–Grower clients - supplying our core products,
–Employees - enabling our service delivery,
–Consumer clients - creating demand for our products,
–Investors - funding our operations,
–The wider communities - the social fabric that unites us.
In our first social report we comment on Seeka's social
responsibilities, support measures and achievements.
Social responsibilitySupportAchievements
Grower clients
Deliver a trusted, cost efficient service.Grower-controlled entities oversee Seeka's
performance and manage fruit value.
Published grower proposal with fixed service prices.
Audited end-of-season grower accounts.
Support growers with timely
information on compliance, their crop,
their returns and industry issues.
Technical team.
Compliance team.
Grower services team.
Grower reporting team.
Information services team.
13 grower field days.
Kiwifruit "After 5s" held twice a year in six regional locations, plus
avocado information evenings.
51 Frankly Speaking email updates from the chief executive.
SeekaApp access to online reports reaching 579 users.
Advocate grower interestsMember of all relevant industry forums.$40m settlement of Psa class action February 2021.
Provide opportunities to benefit from
the downstream value generated from
their produce.
Grower share scheme.2.06m shares held in trust for 405 participating growers. Shares
vest in 2021 (kiwifruit and kiwiberry growers) and 2022 (avocado
growers).
Employees
Be the employer of choice.Human resources team.Benchmark remuneration and survey staff.
Career development pathways including five cadets in 2020.
Provide a safe work environment.Health and safety team.Safety integrated into Seeka's culture, see health and safety report.
$436,000 invested in safety guarding and barriers in 2020.
$1m invested in 30 new tractors for orchard operations.
Provide opportunities to benefit from the
value employees add to our services.
Employee share scheme.568,000 shares held in trust for 319 participating employees.
Shares vest in 2022.
Consumers
Reliable source of safe food.Global.G.A.P. food safety standards.Full track and trace from orchard to market.
Investors
Be the investment of choice.Financial service team.See corporate governance statement for details.
Wider community
Be a responsible community citizen that
enhances social outcomes.
Senior management team.Delivered an essential service in New Zealand and Australia
during the Covid-19 pandemic that generated revenues for our
growers, employees, contractors and investors, while delivering
healthy eating options to international consumers. See health and
safety report for details.
Provided employment and housing for RSE workers, and helped
repatriate 553 RSEs to Malaysia and the Pacific.
Provided $129,167 in donations to community groups in 2020.

23SEEKA LIMITED | ANNUAL REPORT 2020
24
Statement of financial performance
25
Statement of comprehensive income
26
Statement of financial position
27
Statement of changes in equity
28
Statement of cash flows
29
Notes to the financial statements
2020 FINANCIAL STATEMENTS

ANNUAL REPORT 2020 | SEEKA LIMITED24
STATEMENT OF FINANCIAL PERFORMANCE
For the year ended 31 December 2020 - Audited
The accompanying notes form an integral part of these financial statements
New Zealand dollarsNotes
2020
$000s
2019
$000s
Revenue
3
251,457 236,868
Cost of sales
4
198,781 189,404
Gross profit
52,676 47,464
Other income
3
9,440 4,139
Other costs
4
19,170 17,084
Earnings (EBITDA)
1
42,946 34,519
Depreciation expense
10
11,653 10,870
Lease depreciation expense
13
6,671 5,372
Loss on revaluation of land and buildings
4
( 32) 60
Impairment of property, plant and equipment
10
30 395
Impairment of intangible assets
11
102 -
Amortisation of intangible assets
11
204 265
Earnings (EBIT)
2
24,318 17,557
Interest expense
4,163 4,930
Lease interest expense
3,877 2,764
Net profit before tax
16,278 9,863
Income tax charge

8,239 4,084
Deferred tax expense
( 1,551) ( 1,105)
Tax benefit of reintroduction of depreciation on buildings

( 5,561) -
Total tax charge
6
1,127 2,979
Net profit attributable to equity holders
15,151 6,884
Earnings per share for profit attributable to the ordinary
equity holders of the company during the year
Basic earnings per share
20
$0.52$0.23
Diluted earnings per share
20
$0.52$0.23
1. EBITDA, a non-GAAP measure, is earnings before interest, tax, depreciation, amortisation, impairments and revaluations.
2. EBIT, a non-GAAP measure, is earnings before interest and tax.

25SEEKA LIMITED | ANNUAL REPORT 2020
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2020 - Audited
New Zealand dollarsNotes
2020
$000s
2019
$000s
Net profit for the year
15,151 6,884
Items that will not be reclassified to profit or loss, net of tax
Gain on revaluation of land and buildings
10
11,700 3,203
Gain / (loss) on revaluation of water shares
11
( 725) 944
Total items that will not be reclassified to profit or loss
10,975 4,147
Items that may be reclassified subsequently to profit or loss, net of tax
Movement in cash flow hedge reserve
21
85 ( 375)
Movement in foreign currency translation reserve
21
( 17) 19
Movement in foreign currency revaluation reserve
21
399 ( 183)
Total items that may be reclassified subsequently to profit or loss
467 ( 539)
Total comprehensive income for the year attributable to equity holders
26,593 10,492
The accompanying notes form an integral part of these financial statements

ANNUAL REPORT 2020 | SEEKA LIMITED26
STATEMENT OF FINANCIAL POSITION
As at 31 December 2020 - Audited
New Zealand dollarsNotes
2020
$000s
2019
$000s
Equity
Share capital
18
97,489 96,773
Reserves
21
32,438 21,512
Retained earnings
21
46,366 36,659
Total equity
176,293 154,944
Current assets
Cash and cash equivalents
5,164 2,849
Trade and other receivables
14
24,515 28,283
Biological assets - crop
12
19,890 18,629
Inventories
15
5,936 5,455
Irrigation water rights
343 846
Assets classified as held for sale
9
3,844 27,083
Total current assets
59,692 83,145
Non current assets
Trade and other receivables
14
672 683
Property, plant and equipment
10
245,032 220,422
Intangible assets
11
17,622 18,686
Right of use lease assets
13
50,831 44,724
Investment in associates
24
1,000-
Investment in shares
23
577 586
Total non current assets
315,734 285,101
Total assets
375,426 368,246
Current liabilities
Current tax liabilities
6
6,952 1,709
Trade and other payables
16
30,972 22,933
Lease liabilities
13
6,342 5,211
Interest bearing liabilities
17
9,157 21,854
Total current liabilities
53,423 51,707
Non current liabilities
Interest bearing liabilities
17
73,862 97,778
Lease liabilities
13
58,040 45,267
Derivative financial instruments
30
671 790
Deferred tax liabilities
7
13,137 17,760
Total non current liabilities
145,710 161,595
Total liabilities
199,133 213,302
Net assets
176,293 154,944
The accompanying notes form an integral part of these financial statements
On behalf of the Board.
F Hutchings A Waugh
Chairman Director
Dated: 26 February 2021

27SEEKA LIMITED | ANNUAL REPORT 2020
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2020 - Audited
New Zealand dollarsNotes
Share
capital
$000s
Investment
in shares
revaluation
reserve

$000s
Cash
flow hedge
reserve
$000s
Foreign
currency
revaluation
reserve

$000s
Foreign
currency
translation
reserve

$000s
Share
reserve
$000s
Water
share
revaluation
reserve
$000s
Land and
buildings
revaluation
reserve

$000s
Retained
earnings
$000s
Total
$000s
2019
Equity at 1 January 2019
94,406 248 ( 194) ( 108) ( 172) 159 2,372 15,468 37,071 149,250
Net profit
- - - - - - - - 6,884 6,884
Foreign exchange movement
- - - ( 183) 19 - 9 - ( 9) ( 164)
Other comprehensive income / (loss)
- - ( 375) - - - 944 3,203 - 3,772
Total comprehensive income / (loss)
- - ( 375) ( 183) 19 - 953 3,203 6,875 10,492
Transactions with owners
Shares issued
18
804 - - - - - - - - 804
Employee share scheme receipts
18
1,563 - - - - - - - - 1,563
Movement in employee share
entitlement reserve
21
- - - - - ( 42) - - 182 140
Movement in grower share
entitlement reserve
21
- - - - - 412 - - - 412
Movement in investments in shares
reserve
- ( 248) - - - - - - - ( 248)
Dividends paid
22
- - - - - - - - ( 7,469) ( 7,469)
Total transactions with owners
2,367 ( 248) - - - 370 - - ( 7,287) ( 4,798)
Equity at 31 December 2019
96,773 - ( 569) ( 291) ( 153) 529 3,325 18,671 36,659 154,944
2020
Net profit
- - - - - - - - 15,151 15,151
Foreign exchange movement
- - - 399 (17) - ( 3) - 3 382
Other comprehensive income / (loss)
- - 85 - - - ( 725) 10,426 1,274 11,060
Total comprehensive income / (loss)
- - 85 399 ( 17) - ( 728) 10,426 16,428 26,593
Transactions with owners
Shares issued
18
348 - - - - - - - - 348
Employee share scheme receipts
18
368 - - - - - - - - 368
Movement in employee share
entitlement reserve
21
- - - - - 153 - - - 153
Movement in grower share
entitlement reserve
21
- - - - - 608 - - - 608
Dividends declared and paid
22
- - - - - - - - ( 6,721) ( 6,721)
Total transactions with owners
716 - - - - 761 - - ( 6,721) ( 5,244)
Equity at 31 December 2020
97,489 - ( 484) 108 ( 170) 1,290 2,597 29,097 46,366 176,293
The accompanying notes form an integral part of these financial statements

ANNUAL REPORT 2020 | SEEKA LIMITED28
STATEMENT OF CASH FLOWS
For the year ended 31 December 2020 - Audited
New Zealand dollarsNotes
2020
$000s
2019
$000s
Operating activities
Cash was provided from:
Receipts from customers
249,899 233,671
Interest and dividends received
35 217
Cash was disbursed to:
Payments to suppliers and employees
( 213,168) ( 204,946)
Interest paid
( 4,163) ( 4,930)
Lease interest paid
( 3,877) ( 3,136)
Income taxes paid
( 2,373) ( 2,288)
Net cash flows from operating activities
5
26,353 18,588
Investing activities
Cash was provided from:
Sale of property, plant and equipment
10
45 905
Proceeds from sale of property held for sale
9
43,041 44,529
Repayment of grower or grower entity advances
22,550 19,163
Cash was applied to:
Purchase of property, plant and equipment and intangibles
( 13,496) ( 34,668)
Development of bearer plants
( 6,776) ( 3,906)
Acquisition of business
- ( 14,000)
Acquisition of associate
( 1,000) -
Purchase of, and development costs incurred on, property held for sale and SunGold licence
9
( 1,069) ( 27,453)
Advances to growers or grower entities
( 22,303) ( 20,508)
Net cash flows (used in) investing activities
20,992( 35,938)
Financing activities
Cash was provided from:
Proceeds of non-current bank borrowings
17
16,500 59,026
Proceeds of current bank borrowings
17
42,829 51,703
Proceeds from employee and grower loyalty share schemes
18
368 1,563
Cash was applied to:
Lease payments
13
( 6,604) ( 5,070)
Repayment of non-current bank borrowings
17
( 40,882) ( 42,024)
Repayment of current bank borrowings
17
( 55,279) ( 39,750)
Payment of dividend to shareholders
22
( 2,733) ( 6,310)
Net cash flows from financing activities
( 45,801) 19,138
Net increase / (decrease) in cash and cash equivalents
1,544 1,788
Effect of foreign exchange rates
771 ( 279)
Opening cash and cash equivalents
2,849 1,340
Closing cash and cash equivalents
5,164 2,849
Previous corresponding period advances were grossed up by $17.6m to better reflect the cash advance movements during the year.
The accompanying notes form an integral part of these financial statements

29SEEKA LIMITED | ANNUAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020 - Audited
This section contains the notes to the consolidated financial statements for Seeka Limited, its subsidiaries and associates. To give
stakeholders a clear insight into how Seeka organises its business, the note disclosures are grouped into seven sections.
NoteDetailsPage
Basis of preparation 30
Accounting policies that apply to Seeka's full set of financial statements
Performance 32
Where Seeka generates its revenues and their associated operating costs
1. Segment information 32
2. Turnover 34
3. Revenue and other income 34
4. Cost of sales and operating expenses 36
5. Reconciliation of net operating surplus after taxation with cash flows from operating activities 37
6. Income tax expense 38
7. Deferred tax 39
8. Events occurring after balance date 39
Assets 40
How Seeka allocates resources across its operations
9. Assets classified as held for sale 40
10. Property, plant and equipment 41
11. Intangible assets 43
12. Biological assets - crop 45
13. Right of use lease assets and lease liabilities 46
Working capital 48
How Seeka manages its operating cash flow
14. Trade and other receivables 48
15. Inventories 48
16. Trade and other payables 49
Funding 50
How Seeka organises its capital structure
17. Interest bearing liabilities 50
18. Share capital 51
19. Business combination 52
20. Earnings and net tangible assets per share 53
21. Retained earnings and reserves 53
22. Dividends 56
Investments 57
How Seeka manages its investments in shares, subsidiaries and associates
23. Investment in shares 57
24. Investment in subsidiaries and associates 58
Other notes 59
All other note disclosures
25. Contingencies 59
26. Commitments 59
27. Related party transactions 59
28. Risk management 60
29. Determination of fair values of financial assets and liabilities 63
30. Derivative financial instruments 65
31. Financial instruments summary 66

ANNUAL REPORT 2020 | SEEKA LIMITED30
Reporting entity and statutory base
The financial statements presented are those of the consolidated
Seeka group. Seeka Limited is referred to as Seeka Limited or the
Company. The group is referred to as the Group, Seeka, or Seeka
Group.
Seeka Limited is a profit-orientated company registered in New
Zealand under the Companies Act 1993 and a Financial Markets
Conduct (FMC) Reporting Entity for the purposes of the FMC Act
2013. Seeka Limited is listed and its ordinary shares are quoted on the
NZX main board equity security market (NZX Main Board).
Nature of operations
Seeka is a produce business operating in New Zealand and Australia.
In New Zealand the Group provides orchard management, orchard
leasing, post harvest and retail services to New Zealand’s kiwifruit,
avocado, citrus, berry and kiwiberry industries. Seeka manufactures
and sells the Kiwi Crush and Kiwi Crushies product range along with
avocado oil. The Group also provides retail and ripening services for
imported tropical produce, and operates a wholesale market.
In Australia, Seeka owns, leases and operates orchards and associated
post harvest assets, making the Group the largest producer and
supplier of Australian kiwifruit and nashi pears, a major supplier of
European pears, plus lesser production of other temperate-climate
fruits, including plums and apricots.
Statement of compliance and basis of preparation
The consolidated financial statements for the Group have been
prepared in accordance with the requirements of Part 7 of the FMC
Act 2013. The financial statements have been prepared in accordance
with New Zealand Generally Accepted Accounting Principles (GAAP),
incorporating New Zealand Equivalents to International Financial
Reporting Standards (NZ IFRS) and other applicable financial
reporting standards as appropriate for profit-oriented entities. The
Group financial statements also comply with International Financial
Reporting Standards (IFRS).
The financial statements are prepared on a historical cost basis, with
the exception of:
–assets held for sale at fair value (note 9)
–land and buildings at fair value (note 10)
–water shares at fair value (note 11)
–biological assets - crop at fair value (note 12)
–right-of-use lease assets and lease liabilities at present value of
expected cash payments (note 13)
–financial assets and liabilities (including derivative instruments) at
fair value through comprehensive income (note 30 and note 31)
The significant accounting policies applied in the preparation of the
financial statements are set out below.
The financial statements were approved by the Board of Directors (the
Board) on 26 February 2021.
Basis of consolidation
Subsidiaries
Subsidiaries are fully consolidated from the date of acquisition, being
the date on which the Group obtains control, and continue to be
consolidated until the date when such control ceases. The financial
statements of the subsidiaries are prepared for the same reporting
period as the Company, using consistent accounting policies. All intra-
group balances, transactions, unrealised gains and losses resulting
from intra-group transactions and dividends are eliminated in full.
The acquisition method of accounting is used to account for the
acquisition of subsidiaries by the Group. The cost of an acquisition is
measured as the fair value of the assets exchanged, equity instruments
issued and liabilities incurred or assumed at the date the acquisition is
settled. Direct acquisition costs are expensed as incurred.
Intercompany transactions, balances and unrealised gains on
transactions between companies are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence
of the impairment of the asset transferred. Accounting policies
of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Foreign currency transactions
Foreign currency transactions are translated into the functional
currency (NZD) using the exchange rates prevailing during the month
of that transaction. Foreign exchange gains and losses resulting from
the settlement of such transactions are recognised in the income
statement. The presentational currency is the New Zealand dollar
(NZD).
Foreign operations
The results and financial position of all the Group entities (none of
which has the currency of a hyper-inflationary economy) that have
a functional currency different from the presentation currency are
translated into the presentation currency as follows:
–Assets and liabilities for each entity's balance sheet within the
Group are translated at the closing rate at the date of that balance
sheet;
–Income and expenses for each entity's income statement and
statement of other comprehensive income, are translated at
average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expenses are
translated at the rate on the dates of the transactions); and
–All resulting exchange differences are recognised in other
comprehensive income.
Summary of significant accounting policies
The accounting policies have been applied consistently throughout the
periods presented in the financial statements.
Basis of preparation
This section sets out the Group’s accounting policies that apply to the full set of financial statements. Accounting policies which are
limited to a specific note are described in that note.

31SEEKA LIMITED | ANNUAL REPORT 2020
Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning future
operational and financial performance. By definition, these
assumptions may not always equal actual results. The estimates
and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities are
identified in the notes below. Estimates and judgements are
continually evaluated and are based on historical experience as
adjusted for current market conditions and other factors, including
expectations of future events that are believed to be reasonable under
the circumstances. Assumptions underlying management’s estimates
can be found in the following notes to the financial statements.
NoteArea of estimation or judgement
9.Assets held for saleTiming, valuation and recognition of
gain on sale
10Property, plant and
equipment
Valuation and impairment
assessment
11.Intangible assetsImpairment assessment and CGU
allocation
12.Biological assets - cropValuation
13.LeasesDiscount rate and lease term
19.Business combinationValuation on acquisition
21.Retained earnings and
reserves
Valuation of share-based payments
and grower loyalty share scheme
Going concern assumption
The consolidated financial statements have been prepared on a going
concern basis.
Goods and services tax (GST)
The statement of financial performance and statement of
comprehensive income have been prepared so that all components are
stated exclusive of GST. All items in the statement of financial position
are stated net of GST, with the exception of receivables and payables,
which include GST invoiced.
Impact of standards issued but not yet applied by the
entity
There are no new standards, amendments or interpretations that have
been issued and are effective that are expected to have a significant
impact on the Group.
Current economic environment
The 2020 financial year presented a number of challenges from the
economic environment as a result of Covid-19. Seeka continued to
operate as an essential business for fruit production, processing and
the wholesale market operations throughout all levels of Government
lockdowns in New Zealand and Australia. The kiwifruit harvest started
as New Zealand went into level four lockdown and finished early June
when the country was at level two. While the impact on revenue was
minimised the increased health and safety measures that were rolled
out, including protective screens, face masks, and other personal
protective equipment, caused a significant increase to operating
expenses and reduced operating efficiency.
There are no other material impacts from Covid-19 noted outside of
those in the listed notes below.
Statement of financial performance
Post harvest revenue was minimally impacted by the effect of
Covid-19, although profit was less than expected as kiwifruit packing
charges were set before the packing season began and were not able
to be adjusted for the additional costs incurred to maintain stringent
distancing and hygiene protocols, and the reduced efficiency of
packing during the Covid-19 lockdown.
Revenue from orchard operations remained solid, due to strong
kiwifruit returns resulting from international demand for kiwifruit as
a healthy product, and volumes being consistent with the prior year,
although down on expectation due to a dry summer.
Revenue in the retail services operations segment, which includes
Seeka’s wholesale market operations in Auckland, was impacted due
to reduced wholesale market demand from independent fresh produce
retailers who were closed during the level four and level three Covid-19
lockdowns, including the second Auckland lockdown. Demand for the
Group's Kiwi Crush, Crushies ice blocks and avocado oil which are
sold in retail stores and to schools was also down during the Covid-19
lockdown periods. The reduction in revenue flowed through to reduced
profit levels for the retail services operations segment.
The Australian operational result improved as fruit returns remained
strong for the 2020 year. Included in the 2020 result is a one-off gain
on sale from settling the sale and leaseback transaction, see note 9.
Statement of financial position
The statement of financial position is healthy and Seeka operated
profitably throughout the year despite the economic environment.
The completion of the Australian sale and leaseback transaction in
December 2020 meant that net bank debt was reduced to $77.9m.
Trade receivables and payables maintained consistent levels through
the normal course of business and no significant receivables were
required to be written off as a result of their doubtful recoverability.
Land and building property values significantly increased this year
with an additional $11m being recognised in the land and building
revaluation reserve due to an increasing demand for industrial
buildings, particularly in the fruit processing industry, see note 10.
At year end Seeka performed impairment tests for:
–goodwill recognised in the balance sheet ( see note 11),
–crop recognised as a biological asset for harvest 2021, and
–the Group’s net asset value.
The Group compares the carrying amount of net assets with the
market capitalisation value at each balance date. The share price at
31 December 2020 was $4.85, equating to a market capitalisation
of $156.19m. This market value excludes any control premium and
may not reflect the value of Group net assets. The carrying amount
of Group net assets at 31 December 2020 was $176.30m ($5.47 net
assets per share). Management and directors considered all reasons
for this difference and concluded all relevant factors were considered
for their value in use tests. The impairment test performed over the
Group’s net asset value did not identify any impairments.
Future impact
The upcoming 2021 harvest is looking positive and the future
projections for Seeka remain strong. While labour availability will be
an issue for the coming harvest, (see note 28), Seeka has a number of
mechanisms in place to recruit local workers and has secured some
employees under the Recognised Seasonal Employer (RSE) scheme.
Labour costs are also expected to increase by 18% in 2021, which has
been included in the impairment tests performed, see note 11.

ANNUAL REPORT 2020 | SEEKA LIMITED32
Performance
1. Segment information
The Group’s operating segments are entities that engage in business
activities that earn revenues, incur expenses and are reported in a
manner consistent with the internal reports provided to the chief
decision makers, being the Directors, who regularly evaluate the
allocation of resources alongside operational outcomes, such as
EBITDA and EBIT, and are responsible for setting strategic direction.
The Group has five operating segments:
–Four New Zealand segments express the range of complementary
services delivered to New Zealand’s produce industries and the
retail sector.
–A single Australian segment encompasses the integrated business
associated with the Group’s Australian-grown produce.
Direct segment revenues and operating costs are allocated to each
segment. Administration costs, overheads, grower service costs and
other income from the sale of assets recorded in the statement of
financial performance are allocated to all other segments. Transactions
between segments are conducted at arm’s length and are eliminated
on consolidation.
New Zealand segments
Orchard operations
The Group provides on-orchard management services to orchard
owners who produce kiwifruit, avocado and kiwiberry crops.
The Group produces kiwifruit, avocado and kiwiberry crops from:
–Short term leased orchards (typically three-year rolling contracts)
whereby the Group recovers costs and shares any profits with the
orchard owners.
–Long term leased land which the Group has developed into
productive orchards, pays all development and production costs,
owns all crops for the term of the lease, and shares profit with the
landowner after all costs are recovered from crop proceeds.
–Owned orchards whereby the Group incurs growing and harvest
costs and receives all orchard income from crop sales.
Post harvest operations
The Group provides post harvest services to the kiwifruit, avocado,
citrus, berry, and kiwiberry industries. This includes all crops from the
Group’s orchard management and lease operations, plus crops from
independent orchard owners.
Retail service operations
The Group provides fruit marketing services in New Zealand and
internationally, particularly in the Australian and Asian markets. This
includes fruit from the Group’s New Zealand based orchard and post
harvest operations. In New Zealand the Group also provides retail and
ripening services for imported fruit, and operates a wholesale market.
Retail service operations include the production and selling of Kiwi
Crush, Kiwi Crushies and avocado oil to the retail sector and hospitals,
along with post harvest services for kiwiberry.
All other segments - New Zealand
This represents the Group’s aggregated administration, grower
services and overhead sections recorded in the statement of financial
performance and impairment and revaluations of other assets not
attributed directly to any other segment. It also includes the gain on
sale from assets that had been classified as held for sale.
Australian operations
The Group grows, provides post harvest services, and retails all
produce from orchards the Group owns or leases in Australia. The
main products are kiwifruit, nashi pears and European pears, which are
primarily sold in Australia. Included in the 2020 result is a one-off gain
from the settlement of the sale and leaseback transaction, see note 9.
This section focuses on the Group’s financial performance and details the contributions made from the individual operating segments.
EBITDA and EBIT
EBITDA is earnings before interest, tax, depreciation, amortisation, impairments and revaluations. EBITDA is an indicator of profitability and
reflects operating cash flow generation.
EBIT is earnings before interest and tax; an indicator of profitability that excludes interest and income tax expenses.

33SEEKA LIMITED | ANNUAL REPORT 2020
The following table details the operating segments at balance date.
New ZealandAustraliaGroup
New Zealand dollars
Orchard
operations
$000s
Post harvest
operations
$000s
Retail service
operations
$000s
All other
segments
$000s
Australian
operations
$000s
Total
$000s
2020
Income statement
Turnover
1
75,707 140,086 63,882 804 13,065 293,544
Gross segment revenue
75,920 143,132 21,795 804 13,065 254,716
Eliminations
( 213) ( 3,046) - - - ( 3,259)
Total segment revenue
75,707 140,086 21,795 804 13,065 251,457
EBITDA
2
5,439 41,868 3,004 ( 14,801) 7,436 42,946
Depreciation expense
4
( 659) ( 8,083) ( 346) ( 1,547) ( 1,018) ( 11,653)
Lease depreciation expense
6
( 1,259) ( 3,990) ( 465) ( 846) ( 111) ( 6,671)
Gain on revaluation of land and buildings
- 32 - - - 32
Impairment of property, plant and equipment
- - - - ( 30) ( 30)
Impairment of intangible assets
- - - ( 102) - ( 102)
Amortisation of intangible assets
- - - ( 200) ( 4) ( 204)
EBIT
3
3,521 29,827 2,193 ( 17,496) 6,273 24,318
Lease interest expense
6
( 718) ( 2,210) ( 468) ( 398) ( 83) ( 3,877)
Interest expense
5
- - - ( 2,606) ( 1,557) ( 4,163)
Tax charge on profit
- - - 2,050 ( 3,177) ( 1,127)
Profit / (loss) after tax
2,803 27,617 1,725 ( 18,450) 1,456 15,151
Balance sheet
Segment assets
63,437 232,742 12,357 19,675 47,215 375,426
Total assets
63,437232,74212,35719,67547,215375,426
Segment liabilities
33,002 83,857 15,758 26,403 40,113 199,133
Total liabilities
33,002 83,857 15,758 26,403 40,113 199,133
2019
Income statement
Turnover
1
72,419 140,112 49,197 447 11,591 273,766
Gross segment revenue
72,976 142,761 12,299 447 11,591 240,074
Eliminations
( 557) ( 2,649) - - - ( 3,206)
Total segment revenue
7
72,419 140,112 12,299 447 11,591 236,868
EBITDA
2
4,987 40,984 1,673 ( 12,498) ( 627) 34,519
Depreciation expense
4
( 549) ( 7,660) ( 335) ( 1,277) ( 1,049) ( 10,870)
Lease depreciation expense
6
( 741) ( 3,860) ( 205) ( 530) ( 36) ( 5,372)
Loss on revaluation of land and buildings
- ( 60) - - - ( 60)
Impairment of property, plant and equipment
- - - - ( 395) ( 395)
Amortisation of intangibles
- - - ( 250) ( 15) ( 265)
EBIT
3
3,697 29,404 1,133 ( 14,555) ( 2,122) 17,557
Lease interest expense
6
( 336) ( 1,926) ( 252) ( 247) ( 3) ( 2,764)
Interest expense
5
( 4,930)
Tax charge on profit
( 2,979)
Profit / (loss) after tax
3,361 27,478 881 ( 14,802) ( 2,125) 6,884
Balance sheet
Segment assets
54,176 222,892 11,231 27,793 52,154 368,246
Total assets
54,176 222,892 11,231 27,793 52,154 368,246
Segment liabilities
34,782 106,350 13,136 20,952 38,082 213,302
Total liabilities
34,782 106,350 13,136 20,952 38,082 213,302
1. Turnover is a non-GAAP measure, see calculations in note 2.
2. EBITDA, a non-GAAP measure, is earnings before interest, tax, depreciation, amortisation, impairments and revaluations.
3. EBIT, a non-GAAP measure, is earnings before interest and tax.
4. Depreciation includes the depreciation of fixed assets.
5. Interest includes finance costs for bank debt.
6. Lease interest and lease depreciation are as a result of NZ IFRS 16 Leases, see note 13.
7. 2019 segment revenues were restated following the reclassification of $3.726m of revenue from all other segments to the retail services segment.

ANNUAL REPORT 2020 | SEEKA LIMITED34
The following table reconciles segment EBITDA before and after applying NZ IFRS 16.
New ZealandAustraliaGroup
New Zealand dollars
Orchard
operations
$000s
Post harvest
operations
$000s
Retail service
operations
$000s
All other
segments
$000s
Australian
operations
$000s
Total
$000s
2020 - EBITDA
EBITDA pre NZ IFRS 16
3,157 35,937 2,235( 15,813) 14,022 39,538
Capitalised lease costs
2,282 5,931 769 1,012 488 10,482
Gain on sale and leaseback
- - - - ( 7,074) ( 7,074)
EBITDA after applying NZ IFRS 16
5,439 41,868 3,004( 14,801) 7,436 42,946
2019 - EBITDA
EBITDA pre NZ IFRS 16
3,62735,1141,265( 11,731)( 662)27,613
Capitalised lease costs
1,3605,870408533358,206
Gain on sale and leaseback
- - - ( 1,300) - ( 1,300)
EBITDA after applying NZ IFRS 16
4,98740,9841,673( 12,498)( 627)34,519
2. Turnover
The following table reconciles turnover to revenue.
New Zealand dollars
2020
$000s
2019
$000s
Turnover
293,544 273,766
Value of sales made as agent
( 42,087) ( 36,898)
Revenue
251,457 236,868
Turnover
The Board considers turnover a useful measure of the Group's operating activity as it represents the total transactional value of goods and
services provided to external customers during the year. As such turnover includes the value of fruit sales made on behalf of growers and suppliers
where the Group acts as the agent, and is considered the supplier by the purchasing party. This includes all produce sales both local and export.
3. Revenue and other income
New Zealand dollarsNotes
2020
$000s
2019
$000s
Total revenue
251,457 236,868
Other income
Interest
242 214
Gain on sale of investment in shares
- 243
Gain on sale of assets held for sale
9
8,937 3,187
Grower share loyalty scheme
21
( 608) ( 412)
Dividends received
4 3
Net movement in fair value of irrigation water rights
293 904
Other income
572 -
Total other income
9,440 4,139
Total revenue and other income
260,897 241,007

35SEEKA LIMITED | ANNUAL REPORT 2020
Accounting policies
The Group’s major revenue streams are post harvest operations,
orchard management, retail services and Australian operations in
accordance with NZ IFRS 15: Revenue.
Post harvest
The Group enters into two standardised post harvest contracts:
–The first has two performance obligations; to collect the supply
of fruit via picking and transportation, and maturity testing. The
charges are separated in the contract. All revenue is recognised
when the service is performed.
–The second has three performance obligations; to pack fruit, to cool
and dispatch fruit, and to sell class 2 fruit to authorised markets.
These are stand-alone services provided by the Group. Each
performance obligation has a separate transaction price detailed in
the contract and the obligations are recognised when services are
performed; packing revenue as fruit is packed, cooling revenue as
fruit is loaded out from cool storage, and class 2 as fruit is sold.
Orchard management
The Group enters into two orchard management contracts that are
largely standardised:
–The first has one performance obligation; to manage fruit growing.
Revenue is recognised as the service is performed and calculated at
cost plus a margin per the contract. The management fee included
in the contract is recognised evenly over the contract's 12 month
period. An incentive fee is only recognised when agreed orchard
gate return (OGR) targets are achieved and an incentive would be
receivable.
–The second has one performance obligation; to collect the supply
of fruit on short term and long term managed orchards. The
transaction price is determined using a forecasted OGR. Revenue
is recognised when crops are picked (in the June half year accounts
for kiwifruit).
Retail services
The Group enters into three retail service contracts which are
customised to the service being offered (such as ripening or fruit sales):
–The first has one performance obligation; to sell fruit on the owner’s
behalf. As the sales agent, the Group only collects a marketer’s
commission which is recognised when the fruit is sold.
–The second has one performance obligation; to either store or ripen
fruit. Revenue is recognised as the fruit is stored or ripened.
–The third has one performance obligation; to provide ordered
product. The transaction price is based on the agreed price (either
in writing or verbally) with revenue recognised when the fruit is
sold.
Australia
Australian contracts are entered into by the Australian business. The
contracts are on a one-to-one basis with the fruit purchaser and are
largely standardised. There is one performance obligation; to provide
the fruit to the customer. The transaction price is based on the agreed
price (either in writing or verbally) and recognised when the fruit is sold.
Principal versus agent relationship
A principal relationship is one where the Group has the performance
obligation to provide the good or service directly and has control of the
asset or has a right to direct the asset. An agency relationship is one
where the performance obligation is to arrange for the good or service
on behalf of the supplier. The Group currently has agent relationships
for the sale of some fruit and vegetables in the retail services segment.
Impact of seasonality
Group revenues are generated from seasonal horticultural operations,
with post harvest revenues recognised as services are provided and
orcharding revenues recognised once the fruit is harvested. Retail
revenues are generated at the point of sale. In New Zealand kiwifruit
are harvested from March to June, avocados from July to February, and
kiwiberry from February to March. In Australia nashi and European
pears are harvested January to March, and kiwifruit from March to
May. As a result of these harvest timings around 60~70% of orchard
revenues are recognised in the first six months of the financial year.
Due to seasonal fluctuations, the timing of the provision of post
harvest services can vary from year to year, however normally 70~80%
is recognised in the first six months of the financial year, but can be
impacted by seasonal fluctuations.
Irrigation water rights
Water allocation rights are carried at fair value supported by the
value of the traded rights on a recognised exchange or market at
measurement date. Annual water allocation rights are recognised as
a current asset when they are allocated to the Group's permanent
water shares from the first of July each year by the Victorian Water
Register, and are subsequently expensed when the entitlement is
used to irrigate orchards. Any gain on revaluation is recognised in the
statement of financial performance.
Interest income
Interest income is recognised on a time-proportion basis using the
effective interest method.
Dividend income
Dividend income is recognised when the right to receive payment is
established.
Gain on sale of assets held for sale
The gain on sale of assets held for sale is recognised when a sale and
purchase agreement is unconditional and the consideration is paid or
payable at that date.

ANNUAL REPORT 2020 | SEEKA LIMITED36
4. Cost of sales and operating expenses
New Zealand dollarsNotes
2020
$000s
2019
$000s
Operating materials and services
146,782 141,092
Direct employee benefits
53,260 49,017
(Increase) in fair value of biological assets - crop
12
( 1,261) ( 705)
Total cost of sales
198,781 189,404
Total other employee benefits
10,005 8,006
General administrative expenses
8,264 8,141
Audit fees and expenses paid to principal auditors - paid on a Group basis
340 312
Tax compliance and consultancy fees paid to principal auditors
106 150
Tax pooling services paid to principal auditors
5 22
Remuneration benchmarking fees and other advisory services fees paid to principal auditors
- 3
Directors' fees and expenses
450 450
Total other costs
19,170 17,084
Depreciation expense
10
11,653 10,870
Lease depreciation expense
13
6,671 5,372
Amortisation of intangible assets
11
204 265
Impairments and revaluations
Gain / (loss) on revaluation of land and buildings
( 32) 60
Impairment of property, plant and equipment
10
30395
Impairment of intangible assets
11
102 -
Total impairment and revaluation
100 455
Interest expense
4,163 4,930
Lease interest expense
13
3,877 2,764
Total expenses
244,619 231,144
During the year the Group recognised $0.15m of costs relating to the measurement of the employee share schemes issued based on the Black
Scholes Model (Dec 2019 - $0.14m).
Accounting policies
Operating expenses are recognised in the statement of financial performance as incurred, except where future economic benefits arise and they
are recorded as a prepayment.
Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date, are
recognised in other payables. The employee liabilities are measured at the amounts expected to be paid when settled. Liabilities for non-accumulating
sick leave are recognised when the leave is taken and measured at the rates paid or payable.

37SEEKA LIMITED | ANNUAL REPORT 2020
5. Reconciliation of net operating surplus after taxation with cash flows from operating activities
New Zealand dollars
2020
$000s
2019
$000s
Net operating surplus after taxation
15,151 6,884
Add / (less) non cash items:
Depreciation
11,653 10,870
Lease depreciation
6,671 5,372
Other non-cash lease adjustments
425 -
Loss on revaluation of land and buildings
( 32) 60
Impairment of property, plant and equipment
30 395
Revaluation of employee share scheme
153 ( 44)
Revaluation of grower share scheme
608 412
Movement in deferred tax
( 4,623) ( 2,790)
Movement in fair value of biological assets - crop
( 1,261) ( 705)
Amortisation of intangible assets
204 265
13,828 13,835
Add / (less) items not classified as an operating activity:
Loss on sale of property, plant and equipment
164 265
Gain on sale of property held for sale
( 9,662) ( 3,187)
Decrease in current water allocation account
( 45) ( 247)
Gain on sale of investment in shares
- ( 243)
( 9,543) ( 3,412)
(Increase) / decrease in working capital:
Increase in accounts payable
5,420 2,707
(Increase) in accounts receivable/prepayments
( 3,878) ( 343)
(Increase) / decrease in inventory
2,300 ( 3,378)
Decrease in taxes due
3,075 2,295
6,917 1,281
Net cash flow from operating activities
26,353 18,588
Accounting policies
Cash flows statements are prepared using the direct approach. Cash and cash equivalents are shown exclusive of GST.

ANNUAL REPORT 2020 | SEEKA LIMITED38
6. Income tax expense
New Zealand dollarsNotes
2020
$000s
2019
$000s
a. Current tax expense
Current year
8,767 3,561
Prior period adjustment
( 528) 523
Total current tax expense
8,239 4,084
Deferred tax expense
7
Origination and reversal of temporary differences
( 1,551)( 1,105)
Future tax benefit from the reintroduction of tax depreciation on buildings
( 5,561) -
Total deferred tax expense
( 7,112)( 1,105)
Total income tax expense
1,127 2,979
b. Numerical reconciliation of income tax expense to prima facie tax payable
Profit before income tax expense
16,278 9,863
Tax at the New Zealand tax rate of 28%
3,268 3,866
Tax at the Australian tax rate of 30%
1,290( 1,183)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income
533 276
Future tax benefit from the reintroduction of tax depreciation on buildings
( 5,561)-
Tax exempt income
1,624( 2)
Under provision in prior years - temporary differences
( 27) 22
Income tax expense
1,127 2,979
c. Imputation credit account
Imputation credits available for use in subsequent reporting periods
22,244 16,932
The above amounts represent the balance of the imputation account as at the end of the reporting
period, adjusted for:
a. Imputation credits that will arise from the payment of the amount of the provision for income tax
b. Imputation debits that will arise from the payment of dividends recognised as a liability at the
reporting date; and
c. Imputation credits that will arise from the receipts of dividends recognised as receivables at the
reporting date.
d. Current tax (liability) / receivable
Opening balance of current tax (liability)
( 1,709)( 36)
Acquisition
- 44
Adjustments for prior periods
528( 523)
Current year tax
( 8,767)(2,422)
Reclassify income tax as deferred tax
-( 1,139)
Less tax paid
3,059 2,362
Exchange differences
( 63) 5
Current tax (liability)
( 6,952)( 1,709)

39SEEKA LIMITED | ANNUAL REPORT 2020
Accounting policies
Income tax expense comprises both current and deferred tax and is
recognised in the statement of financial performance.
Current tax is the expected tax payable on the taxable income for the
year, using tax rates enacted or substantively enacted at the reporting
date, and any adjustment to the tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing
for temporary differences between the tax losses of assets and
liabilities and their carrying amounts in the consolidated financial
statements. Deferred tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a
business combination and that affects neither accounting or taxable
profit. Differences relating to investments in subsidiaries and jointly
controlled entities are not recognised to the extent that they probably
will not reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be
applied to the temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted at balance date.
A deferred tax asset is recognised to the extent that it is probable that
future taxable profits will be available against which the temporary
differences can be utilised.
7. Deferred tax
Deferred tax assets and liabilities are offset when there is a legally-enforceable right to offset current tax assets against current tax liabilities and
when the deferred income taxes relate to the same fiscal authority.
The following table details the offset amounts.
New Zealand dollars
2020
$000s
2019
$000s
Net deferred tax liabilities:
Opening balance
17,760 14,970
Reclassify income tax as deferred tax
-( 1,139)
Acquisition
- 2,936
Exchange differences
( 31) ( 25)
Charged to the statement of financial performance
( 7,059) 34
Charged to revaluation reserve
2,434 1,131
(Credited) / debited to hedge reserve
33 ( 147)
Closing balance at end of year
13,137 17,760
The balance comprises temporary differences attributable to:
Temporary differences on non-current assets
17,825 21,802
Current liabilities
( 4,712)( 4,110)
Prepayments and accrued income
24 3,645
Losses reclassified as deferred tax
-( 3,577)
Total deferred tax liability
13,137 17,760
Deferred tax assets are recognised for tax loss carry-forwards to the extent that the realisation of the related tax benefit through the future
taxable profits is probable. No amounts were recognised at balance date and there were no unrecognised tax losses (Dec 2019 - Nil).
The deferred tax liability recognised in the financial statements does not represent the tax that would be payable on the disposal of the buildings;
actual tax payable is limited to the reversal of tax depreciation claimed on that asset in prior period tax returns.
Legislation enacted 25 March 2020 reinstated tax depreciation deductions on non-residential buildings. This resulted in a one-off $5.6m gain in
the income tax calculation for the 2020 financial year, see note 6.
8. Events occurring after balance date
On 15 February 2021, settlement was reached in the matter of the kiwifruit class action against the Crown related to the 2010 Psa outbreak. The
settlement sum is $40m inclusive of GST if any. The allocation of the settlement sum is underway which includes legal cost recovery, payment to
the litigation funding partner, and distribution to claimants, of which Seeka is a claimant. The distribution will require the approval of the High Court
prior to any payment being received by Seeka. The amount Seeka will receive is currently unknown.
A dividend was declared of $0.12 cents per share to be paid 30 March 2021, see note 22.
There are no other material events occurring subsequent to balance date requiring adjustment to or disclosure in the financial statements.

ANNUAL REPORT 2020 | SEEKA LIMITED40
Assets
This section focuses on the physical and intangible assets used by the Group to operate the business, deliver benefits to stakeholders,
add new income streams and generate revenues. Assets include post harvest facilities, retail service facilities, and software. Assets
also include Group-owned land, vines, trees and crop on Group-owned and leased orchards. The Group also has interests in water
shares, leases and goodwill arising from Group acquisitions.
Disclosures are made on additions, disposals, revaluations, depreciation, impairments and amortisation.
9. Assets classified as held for sale
New Zealand dollarsNotes
2020
$000s
2019
$000s
Opening balance at 1 January
27,083 24,197
Properties settled to Seeka
- 35,111
SunGold licence purchased
- 5,728
SunGold licence transferred from intangible assets
11
- 1,662
Reclassification to property, plant and equipment
( 231) -
Development costs incurred
1,069 564
Growing costs (recovered)
( 489) ( 346)
Sales settled by third parties at carrying value
( 23,588) ( 39,833)
Total assets held for sale
3,844 27,083
The following table details the assets classified as held for sale by asset class.
New Zealand dollars
2020
$000s
2019
$000s
Asset class
Land and buildings
1,379 8,382
Property, plant and equipment
599 2,935
Intangible assets
849 8,254
Bearer plants
1,017 6,398
Biological assets - crop
- 1,114
Total assets held for sale
3,844 27,083
Assets are classified as held for sale when their carrying amount will
be recovered principally through a sale transaction rather than through
continuing use. This condition is met when the sale is highly probable and
the assets are available for immediate sale in their present condition, and
the Group is committed to the sale and expects it to be completed within
one year from the date of classification. The accounting standards allow
for the period to extend past 12 months if the circumstances causing the
delay are out of Seeka's control. Management considers the remaining
Northland orchards meet the requirements to extend past 12 months as
there is interest in the properties with sales contracts expected in the
next 12 months. Assets held for sale are recorded at the lower of the
carrying value or fair value less costs to sell as required by NZ IFRS 5.
At 31 December 2020, 23 hectares of orchards (Dec 2019 - 56 hectares)
owned by Seeka were classified as held for sale. These properties were
part of the 2018 purchase of Kerikeri assets from T&G Global Limited.
Sale and leaseback transaction in Seeka Australia
Assets related to three kiwifruit orchards in Australia (Hayward, Austral
and Lakes) were recognised as held for sale at 31 December 2019. In May
2020, Seeka announced an agreement to sell 199 hectares of orchard
subject to the Australian Foreign Investment Review Board (FIRB)
approval. Approval was delayed due to the onset of Covid-19, and was
subsequently granted on 8 December 2020. On 15 December 2020, the
Group completed the sale and leaseback for AUD$26.50m.
The initial term of the leaseback is 10.5 years, with rights of renewal out
to 25 years. The terms of the sale and leaseback are typical of those
entered into for an orchard.
The Group has estimated the present value of the rental obligations
in respect of the leaseback to be AUD$14.08m (NZD$15.01m), based
on the initial term of the leaseback of 10.5 years, discounted at an
incremental borrowing rate of 6.79% per annum.
The definition of a sale under NZ IFRS 15: Revenue was met and the
transaction was carried out at fair value. Sales proceeds received were
judged to reflect the fair value of the underlying assets. The quarterly
rental was deemed to be a fair market rent.
The sale and leaseback was accounted for in accordance with paragraphs
98 to 103 of NZ IFRS 16 Leases because the Group had control of the
underlying asset before the asset was transferred to the buyer, with the
transaction giving rise to the following:
–Right of use asset of AUD$7.47m (NZD$7.97m)
–Net proceeds from sale and leaseback of AUD$26.50m (NZD$28.24m)
–Lease liability assumed of AUD$14.08m (NZD$15.01m)
–Net gain on sale and leaseback of AUD$5.83m (NZD$6.18m)
Seeka entered the arrangement to release capital gains produced on the
orchards and will use the funds from the sale and leaseback arrangement
to repay debt and complete Australian developments while securing
supply for Seeka's orchard-to-market service.
All goodwill from the Australia cash generating unit was allocated in 2019
to the disposal group, based on the Group's assessment of relative fair
values of the assets held for sale and Australia assets being retained.
Critical accounting estimates and judgements
The Group used estimates to judgementally recognise the remaining Northland orchards as held for sale, despite being held for sale for greater
than 12 months. The Group used judgement to classify the Australian sale and leaseback as an asset held for sale and estimates to calculate and
judgementally recognise the gain on sale. This included judging the right of use lease asset, lease liability, lease term and estimated discount rate.

41SEEKA LIMITED | ANNUAL REPORT 2020
10. Property, plant and equipment
New Zealand dollars
Land and
buildings
$000s
Plant and
equipment
$000s
Motor
vehicles
$000s
Bearer
plants
$000s
Assets under
construction
$000s
Total
$000s
At 1 January 2019
Cost or valuation
116,364 95,146 736 11,223 18,868 242,337
Accumulated depreciation and impairment
( 6,291) ( 53,420) ( 475) ( 1,857) ( 219) ( 62,262)
Net book amount
110,073 41,726 261 9,366 18,649 180,075
Year ended 31 December 2019
Opening net book amount
110,073 41,726 261 9,366 18,649 180,075
Additions and transfers
49,082 13,496 327 2,720 ( 9,565) 56,060
Depreciation recovery
- 314 - - - 314
Depreciation
( 4,570) ( 5,938) ( 126) ( 236) - ( 10,870)
Disposals
( 232) ( 865) - - ( 49) ( 1,146)
Impairment of property, plant and equipment
- - - ( 395) - ( 395)
Revaluation
3,908 - - - - 3,908
Reclassification to held for sale
( 3,608) ( 749) - ( 2,878) - ( 7,235)
Foreign exchange
( 140) ( 54) ( 2) ( 53) ( 40) ( 289)
Closing net book amount
154,513 47,930 460 8,524 8,995 220,422
At 1 January 2020
Cost or valuation
165,374 106,949 1,062 11,012 9,214 293,611
Accumulated depreciation and impairment
( 10,861) ( 59,019) ( 602) ( 2,488) ( 219) ( 73,189)
Net book amount
154,513 47,930 460 8,524 8,995 220,422
Year ended 31 December 2020
Opening net book amount
154,513 47,930 460 8,524 8,995 220,422
Additions and transfers
6,258 6,086 271 14,318 ( 5,477) 21,456
Depreciation recovery
4 57 28 - - 89
Depreciation
( 5,131) ( 6,147) ( 134) ( 241) - ( 11,653)
Disposals
( 36) ( 486) ( 55) 64 - ( 513)
Impairment of property, plant and equipment
- - - ( 30) - ( 30)
Revaluation
14,474 - - - - 14,474
Reclassification from held for sale
231 - - - - 231
Foreign exchange
263 104 3 58 128 556
Closing net book amount
170,576 47,544 573 22,693 3,646 245,032
At 31 December 2020
Cost or valuation
186,565 112,652 1,281 25,453 3,864 329,815
Accumulated depreciation and impairment
( 15,989) ( 65,108) ( 708) ( 2,760) ( 218) ( 84,783)
Net book amount
170,576 47,544 573 22,693 3,646 245,032
Assets under construction are assets that are yet to be capitalised and are not depreciated. When the asset is ready for use it is transferred to the
appropriate asset class. At 31 December 2020 the assets under construction relate to the Kerikeri coolstore build, which is stage 2 of the Kerikeri
Capital Project. Stage 1 was the packhouse build, which was completed in 2019.
Land and buildings
Land and buildings are revalued to their estimated market value on a three-year rolling cycle (excluding assets under construction), plus any
subsequent additions at cost, less subsequent depreciation for buildings. In New Zealand valuations are undertaken by TelferYoung Valuers,
ANZIV, independent registered valuer.
In Australia valuations are undertaken by Preston Rowe Paterson Shepparton (previously known as Goulburn Valley Property Services),
independent valuers, Shepparton, Victoria, Australia. All Australian land and buildings were revalued at 31 December 2019.
The valuers consider four different approaches in concert to arrive at a fair value;
1. Direct replacement cost - adds the value of the land to the replacement cost of the buildings and other improvements based on the current cost
of construction less depreciation based on the age of the building with an allowance for physical depreciation. Specific consideration is given to
the 'optimised depreciated replacement cost' methodology.
2. Sales comparison - considers sales of other comparable properties.

ANNUAL REPORT 2020 | SEEKA LIMITED42
The following table details the gain on revaluation of land and buildings recognised in the revaluation reserve, net of tax of $10.43m (Dec 2019 -
$3.20m).
New Zealand dollars
Land
$000s
Buildings
$000s
Total
$000s
Land and buildings revaluation reserve
2,441 7,985 10,426
As a consequence of the building revaluations conducted in December 2020, $5.90m (Dec 2019 - $3.71m) of accumulated depreciation was
offset directly against the assets' cost or valuation, prior to revaluation.
The following table details the depreciated value of land and buildings if they were to be stated on a historical cost basis.
New Zealand dollars
2020
$000s
2019
$000s
Cost
184,251 178,030
Accumulated depreciation
( 41,556) ( 35,557)
Depreciated historical cost
142,695 142,473
Net book amount
170,576 154,513
Impairment of bearer plants
For the year ended 31 December 2020, $0.03m of cherries were at the end of their useful life and removed with the remaining costs impaired.
For the year ended 31 December 2019, the Group replaced some Australian bearer plants as a result of the Psa disease being identified on new
grafts. This resulted in an impairment and the write off of the carrying value of bearer plants of $0.40m which was recognised in the statement of
financial performance. There is no significant impairment relating to bearer plants in the year ended 31 December 2020.
Accounting policies
Bearer plants
Bearer plants are the Group's investment in kiwifruit vines, pear,
avocado and other fruiting vines and trees on Group-owned and leased
land. Bearer plants are stated at historical cost less depreciation.
Historical cost includes all costs incurred to purchase or establish the
asset.
Land and buildings
Land and buildings are shown at fair value, based on periodic, but at
least triennial valuations by independent valuers, plus any subsequent
improvements at cost, less depreciation. At each annual balance date,
no less than one third of assets classified as land and buildings are
revalued and those valuations are used to assess the appropriateness
of the carrying values of all land and building assets held by the Group,
which effectively revalue all land and buildings annually. Revaluations
are performed more frequently if changing industry conditions may
cause their carrying value to differ significantly from fair value. Any
accumulated depreciation at the date of revaluation is eliminated
against the gross carrying amount of the asset and the net amount is
restated to the revalued amount of the asset.
Changes in the carrying amounts arising on revaluation of land and
buildings are accounted for through comprehensive income and other
reserves, except where an asset's assessed fair value is less than the
original cost, in which case the change is recognised in the statement of
financial performance.
Property, plant and equipment
All other property, plant and equipment are stated at historical
cost less depreciation. Historical cost includes all costs incurred to
purchase the asset.
Subsequent additions at cost are included in the asset’s carrying value or
recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to
the Group and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the statement of financial
performance during the financial period in which they are incurred.
Asset impairments are recognised in the statement of financial
performance.
Depreciation
Land is not depreciated. Depreciation on other assets is calculated
using the straight line or diminishing value method to allocate their
cost or revalued amounts, net of their residual values, over their
estimated useful lives. The depreciation of bearer plants on leased
land orchards is aligned to the term of the lease.
The estimated useful lives of assets are as follows:
– Buildings 20 - 50 years
– Machinery 10 - 20 years
– Vehicles 4 - 7 years
– Furniture, fittings and equipment 3 - 10 years
– Bearer plants: 5 - 50 years
Asset residual values and useful lives are reviewed, and adjusted
if appropriate, at balance date and an asset’s carrying amount is
immediately written down to its recoverable amount.
Gains and losses on disposals are determined by comparing proceeds
with the carrying amount, and any gain or loss is included in the
statement of financial performance. When revalued assets are sold, the
amounts included in the revaluation reserve in respect of those assets
is transferred to retained earnings.
3. Capitalisation of rentals - assumes a hypothetical lease of the property with a current market rental being established and capitalising this at an
appropriate rate of return (6.25% – 10.5%) that would be expected by a prudent investor. The 2020 year saw capitalisation rates fall between
0.5% - 0.75% since the previous valuations.
4. Discounted cash flow - a variation of the investment method whereby it takes the current market rental calculated under the investment
method and forecasts net cash flows over a ten-year period. Cash flows are adjusted for expected growth in market rentals and estimated costs
incurred to maintain land and buildings in operational use. This method assumes land and buildings are sold in the terminal year (year 11).
The net book value of land is $23.43m (Dec 2019 - $23.37m) and buildings is $147.14m (Dec 2019 - $131.14m), see note 29.

43SEEKA LIMITED | ANNUAL REPORT 2020
11. Intangible assets
New Zealand dollarsNotes
Software
$000s
Goodwill
$000s
Water
shares
$000s
Other
intangibles
$000s
Total
$000s
At 1 January 2019
Cost
3,097 10,824 7,858 1,662 23,441
Accumulated amortisation and impairment
( 2,298) ( 2,977) - - ( 5,275)
Net book amount
799 7,847 7,858 1,662 18,166
Year ended 31 December 2019
Opening net book amount
799 7,847 7,858 1,662 18,166
Additions
98 - - - 98
Additions from business combination
19
- 7,035 - - 7,035
Revaluation
- - 1,343 - 1,343
Exchange differences
- ( 61) ( 79) - ( 140)
Amortisation
( 265) - - - ( 265)
Reclassification to assets held for sale
9
- ( 5,889) - ( 1,662) ( 7,551)
Closing net book amount
632 8,932 9,122 - 18,686
At 1 January 2020
Cost
3,195 10,963 9,122 - 23,280
Accumulated amortisation and impairment
( 2,563) ( 2,031) - - ( 4,594)
Net book amount
632 8,932 9,122 - 18,686
Year ended 31 December 2020
Opening net book amount
632 8,932 9,122 - 18,686
Additions
67 - - - 67
Disposals
( 13) - - - ( 13)
Revaluation
- - ( 1,039) - ( 1,039)
Impairment
( 102) - - - ( 102)
Exchange differences
- - 227 - 227
Amortisation
( 204) - - - ( 204)
Closing net book amount
380 8,932 8,310 - 17,622
At 31 December 2020
Cost
3,147 10,963 8,310 - 22,420
Accumulated amortisation and impairment
( 2,767) ( 2,031) - - ( 4,798)
Net book amount
380 8,932 8,310 - 17,622
Other intangibles related to SunGold kiwifruit licences that were subsequently reclassified as held for sale with the Northland orchards in 2019
once Seeka obtained the property titles, see note 9.
The amortisation period of software is four to five years.
Water shares are an integral part of land and irrigation infrastructure required to grow pears, kiwifruit and other annual crops in Australia and
are carried at fair value based on the closing water share market price. The movement in the fair value is recognised in the statement of other
comprehensive income.
Critical accounting estimates and judgements
At 31 December 2020 a significant portion of Seeka's land and building portfolio was revalued. Seeka’s property values significantly increased
in the last year due to an increase in market demand for industrial properties. Seeka operates in the food production industry, which remained
stable with a high demand for healthy foods during the Covid-19 pandemic. Properties situated in the Bay of Plenty are also expected to be less
affected than other regions given the ongoing strength of horticulture and agriculture businesses.
Seeka’s Australian properties are in the food production region of Victoria. The sale and leaseback transaction completed on 15 December
supports the carrying values of the remaining properties.
Sensitivity analysis suggests the remaining properties that were not revalued this year could cause an increase in land and buildings of a
further 2-4%. This is not considered a material movement in land and building values.

ANNUAL REPORT 2020 | SEEKA LIMITED44
The following table details the key assumptions used for value-in-use calculations and the recoverable amount.
Group cash generating unitsOperating segment
Goodwill
carrying
amount
$000s
Discount
rate
1
Revenue
growth rate
1-5 years
Terminal
growth rate
2
2020
Aongatete Coolstores Limited Post harvest operations
7,035 8.0%3% - 5%
3
1.0%
Northland packhouse Post harvest operations
1,220 8.0%( 4%) - 7%
4
1.0%
SeekaFresh Retail services operations
433 8.0%2%
5
2.0%
Kiwi Crush Retail services operations
244 8.0%2%
6
1.0%
2019
Aongatete Coolstores Limited Post harvest operations
7,035 8.0%1% - 4%1.0%
Northland packhouse Post harvest operations
1,220 8.0%2% - 15%1.5%
SeekaFresh Retail services operations
433 8.0%3% - 13%2.0%
Kiwi Crush Retail services operations
244 8.0%5%5.0%
The following table details how water shares would be stated on the historical cost basis.
New Zealand dollars
2020
$000s
2019
$000s
Cost
4,535 4,535
Amortised cost
4,535 4,535
Net book amount
8,310 9,122
Impairment tests for goodwill
The Board reviews and monitors goodwill at a cash generating
unit level. Goodwill represents the 2019 acquisition of Aongatete
Coolstores Limited, the 2018 acquisition of the Northland business,
the previously-acquired Glassfields business (now named SeekaFresh)
and the Kiwi Crush and Kiwi Crushies product ranges.
The recoverable amount is based on the net present value of the
five-year after-tax cash flow projection (value in use), with a terminal
value beyond five years. Cash flows beyond the five year period
are extrapolated using estimated growth rates and discount rates
stated in this note. The assumptions used for the analysis of the net
present value of forecast gross margin for the cash generating unit, is
determined based on past performance and the Board's expectations of
future market development, plus the Group's five year financial plans.
No goodwill was recognised during the year. For the year ended
31 December 2019, $7.0m of goodwill was recognised from the
acquisition of Aongatete Coolstores Limited, see note 19.
All amounts recognised as goodwill at 31 December 2020 were tested for
impairment at balance date and no impairment arose in the current year.
1. The discount rate is calculated based on the specific circumstances
of the cash generating unit and its operations, and is derived from
its weighted average cost of capital. The discount rate for Seeka is
set at 8% as this represents the Board's assessment of the Group's
weighted average cost of capital of 7% plus an additional 1% to
recognise the higher risk of a smaller division.
2. The long term growth rate is based on growth in GDP, market
conditions and opportunities for growth within the industry. The
Group has set its terminal growth rates between 1% - 2% to ensure
a long term conservative growth estimate has been applied in the
impairment tests.
3. If the revenue growth rates reduced to 2%, there is no impairment.
4. The revenue growth rates used for the Northland packhouse reflect
the expected increase in SunGold kiwifruit volumes as plantings
come into production during the period being assessed. If the
revenue growth rates reduced to 3%, there would be no impairment.
The negative 4% growth rate relates to an expected decline in citrus
packing in Northland in 2023 and onwards which will be replaced by
increasing Zespri SunGold volumes in the following years.
5. The revenue growth used for the SeekaFresh business reflects
the expected performance of the business over the period being
assessed. The 2% revenue growth rate is considered a conservative
estimate and no impairment is required.
6. The revenue and terminal growth rates used for Kiwi Crush reflects
expected performance over the next 5 years as the business
continues to commercialise new product lines and explore new
markets.
At 31 December 2020, all goodwill balances were reviewed for
indicators of impairment.
The goodwill relating to Aongatete Coolstores Limited and the
Northland packhouse are supported by 2020 operational outcomes.
2020 kiwifruit harvest volumes were in line with the prior year and
packing volumes are expected to increase in future years. Whilst
Covid-19 impacted 2020 costs and packing margins, the post harvest
segment operated profitably throughout the lockdown period. For these
reasons, there are no indications of impairment of the goodwill relating
to Aongatete Coolstores Limited and the Northland packhouse.
The goodwill relating to the Kiwi Crush business is supported by
current trading performance. Having achieved 2020 targets, there are
no indications of impairment of the goodwill relating to the Kiwi Crush
business.
SeekaFresh started the year well, until sales were impacted by
Covid-19. The business continued to operate as an essential service,
but was affected by the temporary closure of hospitality and
independent retail based customers during the lockdown. Following
completion of the restucturing period for SeekaFresh in 2020, the
commission business (which includes the domestic and export sales
of Seeka-grown avocado, kiwiberry, and class two, class three, and
collaboratively marketed kiwifruit), is integrated with the original
Glassfields business to a degree where is indistinguishable from the
original cash generating unit, and has therefore been included in
the forecasted revenue assumptions. The terminal growth rate has
remained consistent, but sensitivity was performed to ensure a 1%
terminal growth rate would not result in an impairment.
No other reasonable changes to key assumptions would require an
impairment of goodwill.

45SEEKA LIMITED | ANNUAL REPORT 2020
12. Biological assets - crop
Crops growing on bearer plants are classified as biological assets and measured at fair value.
Crop assets are kiwifruit, Nashi pears, Packham pears, Corella pears, other pears, cherries, avocado, apricot, and plum crops growing on leased
and owned orchards and yet to be harvested at balance date.
The following table reconciles beginning balances to end balances for biological assets crop measured at fair value defined as level 3 in note 29.
New Zealand dollars
2020
$000s
2019
$000s
Carrying amount at 1 January
18,629 17,924
Crop harvested during the period
Fair value movement from the beginning of the period to point of harvest
23,599 19,563
Fair value when harvested
( 42,228) ( 37,487)
Crop growing on bearer plants at end of period
Crop where cost is deemed fair value
19,597 18,148
Crop at fair value
293 481
Carrying value at 31 December
19,890 18,629
The following table reconciles fair value movement of biological assets - crop.
New Zealand dollars
2020
$000s
2019
$000s
Movement in carrying amount
1,159 756
Exchange differences
102 ( 51)
Net fair value movement in crop
1,261 705
The following table details the classification of biological assets - crop.
New Zealand dollars
2020
$000s
2019
$000s
Australia - all varieties
4,201 4,703
New Zealand - kiwifruit crop
14,863 13,563
New Zealand - avocado crop
826 363
Carrying value at end of period
19,890 18,629
Accounting policies
Intangible assets
Assets with a finite useful life are subject to depreciation and
amortisation and reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may
not be recoverable. Intangible assets that have an indefinite life
are not subject to amortisation and are tested at least annually
for impairment, with impairment losses recognised when the
carrying amount exceeds the recoverable amount. When assessing
impairment, assets are grouped at the lowest identifiable unit able to
generate cash flow.
Software
Acquired computer software licences are capitalised on the basis of
the costs incurred to acquire and bring to use the specific software.
Internally developed computer software is capitalised when it enters
the development phase and includes costs incurred to develop and
test the software for use. Intangible assets are amortised over their
estimated useful life (typically three to five years).
Goodwill
Goodwill represents the excess of the cost of an acquisition over the
fair value of the Group’s share of the net identifiable assets at the
date of acquisition. Goodwill on a business acquisition is included
in intangible assets, and on acquisition of an associate is included in
investments in associates. When acquired in business combinations,
the goodwill is annually tested for impairment (or more frequently if
deemed prudent) and carried at cost less accumulated impairment
losses. Gains and losses on the disposal of a business include the
carrying amount of goodwill relating to that business.
Water shares
The Group records permanent water shares at fair value based on the
market price at balance date. The shares are fully tradeable and have
an indefinite life and are not amortised.
Other intangibles
Other intangibles subject to amortisation are amortised over the life
of the asset on a straight line basis. The expense is charged to the
statement of financial performance.
Critical accounting estimates and judgements
The review of impairment of intangible assets uses judgement to identify indicators of impairment. The impairment testing of intangible assets
uses estimates of revenue growth rates, discount rates and terminal growth rates.

ANNUAL REPORT 2020 | SEEKA LIMITED46
13. Right of use lease assets and lease liabilities
The Group reports all leases on the balance sheet where it has the right to obtain substantially all of the economic benefits from the use of the asset
throughout the period of the lease, with the exception of low value leases or leases less than 12 months, as per NZ IFRS 16.
The following table details leases where the Group is a lessee.
New Zealand dollars
2020
$000s
2019
$000s
Right-of-use lease assets
Land and buildings
26,663 27,168
Orchard leases
19,644 12,274
Equipment
2,403 3,182
Motor vehicles
2,121 2,100
Total right-of-use lease assets
50,831 44,724
The movements for the year are as follows:
Right-of-use lease asset movements
Opening balance
44,724 32,652
Additions
12,778 17,444
Depreciation
( 6,671) ( 5,372)
Closing balance
50,831 44,724
New Zealand dollars
2020
$000s
2019
$000s
Lease liabilities
Current
6,342 5,211
Non-current
58,040 45,267
Total lease liabilities
64,382 50,478
The liabilities are classified as follows:
Lease liabilities
Land and buildings
31,119 31,462
Orchard leases
28,707 13,847
Equipment
2,390 2,990
Motor vehicles
2,166 2,179
Total lease liabilities
64,382 50,478
The movements for the year are as follows:
Lease liability movements
Opening balance
50,478 36,840
Additions
20,508 18,708
Reduction in liability
( 6,604) ( 5,070)
Closing balance
64,382 50,478
Accounting policies
Biological assets are the crops growing on bearer plants in the Group’s
leased and owned orchards. The method to determine fair value
depends on the degree of biological transformation (the maturity of
the fruit) at balance date.
When insufficient biological transformation has occurred, the fair value is
the costs incurred at balance date to grow the crops (provided the costs
are considered recoverable). When costs are not considered recoverable
they are expensed in the statement of financial performance.
When sufficient biological transformation has occurred, fair value is
the estimated net market return less selling cost and costs to market.
The estimated market return less selling cost is established by reference
to current and expected sales returns when available. When market data
is not available an assessment is made based on historical data.
Critical accounting estimates and judgements
The valuation of biological assets uses estimates of market returns to determine value.
Crop where cost is deemed fair value
Kiwifruit, nashi, Packham and Corella pear crops are not considered to
have achieved sufficient biological transformation at balance date and
as such cost is deemed fair value, see note 29.
During the year ended 31 December 2020, no development costs
were expensed due to the effect of Psa on recently grafted crops
on producing orchards in Australia (Dec 2019: $0.50m). This was
reflected in the change in the fair value of the biological asset.

47SEEKA LIMITED | ANNUAL REPORT 2020
Additions
On 15 December 2020, the Group completed a sale and leaseback transaction for three kiwifruit orchards totalling 199 hectares in Australia.
The completion of this sale created a right-of-use lease asset and a lease liability, with the difference between the two recognised as a gain on
sale through the statement of financial performance, see note 9.
On 30 September 2019 of the prior year, the Group entered into the sale and leaseback transaction for an orchard in Northland. The lease was
for 15 years. A right of use asset and lease liability was calculated using the incremental borrowing rate, with the difference representing a gain
on sale in 2019.
Accounting policies
Lease liabilities are measured as the present value of the remaining
lease payments, including any renewal periods that are likely to be
exercised, discounted using the Group’s incremental borrowing rate
which ranges between 5% and 10%. The discount rate is based on the
Group's incremental borrowing rate, being the rate the Group would
borrow the funds required to purchase the asset. When determining
the discount rate, Seeka considers that the right-of-use lease asset
should not be greater than the fair value of the underlying asset being
leased.
The Group’s right-of-use lease asset is equal to the lease liability on
the day of lease inception, with the exception of sale and leaseback
transactions where the asset is measured as the proportion of the
carrying value of the asset sold of which the benefit is retained by the
Group. The right-of-use lease asset is depreciated on a straight line
basis over the period of the lease. Costs incurred with a lease that are
not part of the cost of the right-of-use lease asset are expensed.
All leases have been classified into one of the following asset classes:
–Land and building - leases for rental of all properties, including
packhouses and coolstores
–Orchard - leases held for the development of productive orchards
–Equipment - leases for equipment, including plant equipment and
forklifts
–Motor vehicles - three year leases for motor vehicles
The Group leases various properties for the packing and cooling
of kiwifruit, orchard leases to grow kiwifruit and avocados, and
equipment and vehicle leases. The terms of the leases vary, with land
and building leases ranging from 10 - 15 years, with one 99 year lease.
Orchard leases range from 5 - 15 years, and equipment and vehicle
leases range from 1 - 3 years.
Contracts may contain both lease and non-lease components. In
the case of orchard leases, only the fixed rental is recognised as a
lease liability. Any variable consideration relating to profit share on
the orchard leases is not accounted for as the profit share is only
determined after a crop has been harvested and is not identifiable
at the commencement of the lease. Lease terms are negotiated on
an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants
other than the security interest in the leased assets that are held by
the lessor. Leased assets may not be used as security for borrowing
purposes.
The Group is exposed to potential future increases in land and building
lease payments based on contractual market rent reviews that are not
included in the lease liability until the rent review takes place.
Lease payments are allocated between principal and lease interest.
The lease interest is charged to the statement of financial performance
over the term of the lease.
Critical accounting estimates and judgements
The valuation of right-of-use lease assets and lease liabilities uses judgement to determine the incremental borrowing rate and the
likelihood of exercising any rights of renewal to extend the lease term.

ANNUAL REPORT 2020 | SEEKA LIMITED48
Working capital
Accounting policies
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts.
Collectability of trade receivables is reviewed on an ongoing basis including debts past due, but not considered impaired. Debts which are known
to be uncollectible are written off. A provision for doubtful receivables is established based on the expected default rates over the balance of trade
receivables. See note 28 for calculation details.
15. Inventories
New Zealand dollars
2020
$000s
2019
$000s
Total packaging at cost
3,884 3,212
Other inventories at cost
2,052 2,243
Total inventories
5,936 5,455
In the current year, $27.48m (Dec 2019 - $28.89m) of packaging inventory costs were expensed to cost of sales in the statement of financial
performance.
Accounting policies
Raw materials, work in progress, finished goods and produce are stated at the lower of cost or net realisable value. Cost comprises direct
materials and direct labour, and are assigned to individual items of inventory on the basis of weighted average cost. Net realisable value is the
estimated selling price less estimated costs of completion and sales costs.
This section focuses on how the Group manages inventories, accounts receivable and accounts payable to ensure an appropriate level
of working capital is available to operate the business, deliver benefits to stakeholders and generate revenues.
14. Trade and other receivables
New Zealand dollars
2020
$000s
2019
$000s
Current trade receivables (net of provision for doubtful debts)
13,796 12,035
Prepayments
1,758 1,347
Prepaid deposits
1,470 1,827
GST refund due
620 502
Accrued income and other sundry receivables
6,871 7,622
Accrued unconditional sales of assets classified as held for sale
- 4,950
Current trade and other receivables
24,515 28,283
Non current trade receivables
672 683
Non current trade and other receivables
672 683
Total trade and other receivables
25,187 28,966
December 2020 prepaid deposits incorporated $1.5m of deposits for avocado trees not yet received (Dec 2019 - $1.8m).
Accrued income and other sundry receivables includes income to be received from orcharding operations over leased and owned orchards
relating to 484 hectares (Dec 2019 - 481 hectares).
Within current trade receivables, $1.97m are past due (Dec 2019 - $2.13m), of which 1.6% are more than 90 days (Dec 2019 - 2.6%). Non-current
trade receivables are considered recoverable and relate to debtors secured against crop supply commitments with repayment terms of up to five years.
A $0.16m provision for doubtful debts was recognised in the financial statements (Dec 2019 - $0.13m).
Critical accounting estimates and judgements
The Group reviewed trade and other receivables for any debtor impairment, credit risk, or any other such risks that may result in non-
payment. The Group did not identify any circumstances that required further provisioning or impairment of financial instruments.

49SEEKA LIMITED | ANNUAL REPORT 2020
16. Trade and other payables
New Zealand dollars
2020
$000s
2019
$000s
Trade payables
5,909 6,935
Accrued expenses
16,034 11,062
Employee expenses
5,354 4,437
Accrued dividend payable
3,231-
Other payables
444 499
Total trade and other payables
30,972 22,933
Trade payables include $0.7m for capital works in progress (Dec 2019 - $1.1m).
Accrued expenses include costs to be incurred from orcharding operations over leased and owned orchards totalling 484 hectares (Dec 2019 -
481 hectares). Accrued expenses also include costs relating to the retail service segment and the export and domestic sale of avocado.
Accounting policies
Trade payables are recognised initially at fair value (the invoiced amount). If the Group has been provided with extended terms of trade, they are
then recognised at amortised cost using the effective interest method.

ANNUAL REPORT 2020 | SEEKA LIMITED50
Funding
This section focuses on how the Group manages its capital structure to protect shareholder value while funding operations that deliver
benefits to stakeholders and grow shareholder returns.
Disclosures are made on the Group’s bank facilities, retained earnings, dividends paid to shareholders, and earnings per share. Details on the
Company’s share capital include shares issued under the dividend reinvestment plan, grower incentive and employee share schemes.
17. Interest bearing liabilities
New Zealand dollars
2020
$000s
2019
$000s
Current secured
Bank borrowings
9,157 21,854
Total current interest bearing liabilities
9,157 21,854
Non current secured
Non current portion of term liabilities
73,862 97,778
Total non-current interest bearing liabilities
73,862 97,778
Total interest bearing liabilities
83,019 119,632
Analysis of movements in borrowings:
At 1 January
119,632 80,400
Cash flow - additional borrowings
59,329 121,184
Cash flow - repayment of borrowings
( 96,161) ( 81,774)
Exchange differences
219( 178)
At 31 December
83,019 119,632
Analysis of total facilities:
Drawn
83,019119,632
Available
39,28119,968
Total facilities at 31 December
122,300139,600
The Board has assessed the fair value of the term loans as the outstanding balance at balance date.
The Group’s bank facilities are held with Westpac and Rabobank and it is expected that all facilities will be refinanced when they become due for
review in the normal course of business.
The following table details the amounts of the term loans drawn down at balance date and their maturities.
Banker
Balance due
$000sInterest rateMaturity
Term loans as at 31 December 2020
AUD $17mWestpac
18,116 2.36%31 December 2022
NZD $34.5mWestpac
28,500 2.15%31 December 2022
NZD $12mWestpac
12,000 2.72%31 December 2023
NZD $9mWestpac
9,000 2.72%31 December 2023
NZD $6.3mRabobank
6,246 2.33%22 December 2022
Term loans as at 31 December 2019
AUD $17mWestpac
17,677 3.02%31 December 2021
AUD $10mWestpac
10,334 4.15%30 September 2021
NZD $31.5mWestpac
31,500 2.75%31 December 2021
NZD $12mWestpac
12,000 3.39%31 March 2022
NZD $10mWestpac
10,000 3.28%31 March 2022
NZD $9mWestpac
9,000 3.39%31 March 2022
NZD $6.4mRabobank
6,405 3.24%31 January 2021
NZD $0.9mRabobank
862 3.24%26 February 2021
The Group’s term loans are on interest-only repayment terms, with the exception of the $6.25m Rabobank loan, which has a scheduled $1.02m
annual payment of principal.

51SEEKA LIMITED | ANNUAL REPORT 2020
Accounting policies
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.
When it is probable that part or the entire loan will be drawn down, any loan facility establishment fee paid is recognised as a loan transaction cost.
When the loan will probably remain undrawn, any loan fee paid is capitalised as a pre-payment for liquidity services and amortised over the period of
the facility.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after
balance date.
18. Share capital
Shares
2020
Shares
2019
Shares
Authorised and issued share capital
Ordinary shares - fully paid and no par value:
Opening balance
32,115,799 29,317,470
Shares issued under:
Dividend reinvestment programme
88,240 168,526
Grower loyalty share scheme
- 2,061,803
Employee share scheme
- 568,000
Total shares issued
32,204,039 32,115,799
Ordinary shares - classified as follows:
Held by ordinary shareholders
29,455,162 29,366,922
Held by Seeka Share Trustee Limited
2,748,877 2,748,877
Total shares issued
32,204,039 32,115,799
New Zealand dollars
2020
$000s
2019
$000s
Movements in ordinary paid up share capital:
Opening balance of ordinary shares
109,434 96,112
Issues of ordinary shares during the year
348 804
Grower loyalty share scheme issue
- 9,814
Employee share scheme issue
- 2,704
Closing balance of ordinary share capital
109,782 109,434
Movements in treasury share capital:
Opening balance of ordinary shares
12,661 1,706
Employee share scheme receipts - 2016 issue
( 124) ( 1,231)
Grower loyalty share scheme issue of new shares
- 9,814
Grower loyalty share scheme receipts - 2019 issue
( 192) ( 231)
Employee share scheme issue of new shares
- 2,704
Employee share scheme receipts - 2019 issue
( 52) ( 101)
Closing balance of shares held as treasury capital
12,293 12,661
Net share capital
97,489 96,773
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of fully
paid shares held.
The 2016 employee share scheme issue vested on 20 May 2019, see note 21.
Assets pledged as security
Bank loans and overdrafts are secured by first mortgages over the Group’s freehold land and buildings. The Group’s policy is to protect the term
portion of the loans from exposure to changing interest rates via the use of derivatives, see note 30.

ANNUAL REPORT 2020 | SEEKA LIMITED52
19. Business combination
Purchase of shares in Aongatete Coolstores Limited
During the period ended 31 December 2019, the Group purchased 100% of the shares in Aongatete Coolstores Limited, a kiwifruit post harvest
business based north of Tauranga in the Bay of Plenty, New Zealand. The business owned packhouse and coolstore facilities and operated an
orchard management business. The purchase was completed on 18 March 2019 for a purchase price of $14m.
The following table details the fair values of assets and liabilities recognised at acquisition.
New Zealand dollars
2019
$000s
Aongatete Coolstores Limited
Land and buildings
17,450
Property, plant and equipment
1,852
Inventory
438
Leased assets
928
Biological assets
2,080
Cash and debtors
768
Creditors
( 428)
Other current liabilities
( 1,829)
Deferred tax liability
( 2,891)
Leased liabilities
( 948)
Term loans
( 10,455)
Goodwill
7,035
Total purchase consideration for shares
14,000
The goodwill was allocated to the post harvest and orchard segments and is attributable to the operation’s strong position in the Bay of Plenty and
synergies expected to arise after adding additional post harvest and orchard facilities to Seeka’s operations. The goodwill is not expected to be
impaired in the foreseeable future. None of the goodwill is expected to be deductible for tax purposes. Acquisition-related costs of $0.20m were
included in administrative expenses. Deferred tax of $2.9m was provided in relation to differences between tax values and the fair value of certain
assets.
Land and buildings were valued using an independent valuation completed by Telfer Young Valuers using the same approach as other land and
buildings detailed in note 10.
No changes have been made since 31 December 2019.
Accounting policies
Ordinary shares are classified as equity.
Where any Group company purchases the Company's equity share capital (treasury shares), the consideration paid, including any directly
attributable incremental costs (net of income taxes), is deducted from equity attributable to the Company's equity holders until the shares are
cancelled or reissued. Where such shares are subsequently reissued, any consideration received, net of any directly attributable incremental
transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.
Grower loyalty share scheme
On 15 March 2019, the Group invited eligible growers of kiwifruit, avocado and kiwiberry to participate in a three-year grower loyalty share
scheme, whereby each participant would be allocated a parcel of shares based on their orchard's current or forecast production. This issue of up
to 2.6m shares was approved by shareholders on 14 February 2019.
In April 2019, 2,061,803 shares were issued to the scheme's trustees on behalf of 405 participating growers. The issue price of $4.76 per share was
funded by the Group making a $9.8m non-interest-bearing loan to the trustees. Upon meeting the terms of the scheme by supplying all product
from the participating orchards for three consecutive seasons, participating growers can elect to pay the outstanding balance of their loans, less any
dividend payments made on the shares, and have the shares transferred to them. Shares issued under this scheme vest in 2021 and 2022.
Employee share scheme
On 15 March 2019, the Group invited eligible employees to participate in a five-year employee share scheme, whereby each participant would
be allocated a parcel of shares based on their role in the business. In April 2019, 568,000 shares were issued to the scheme's trustees on behalf
of 319 participating employees. The issue price of $4.76 per share was funded by the Group making a $2.7m non-interest-bearing loan to the
trustees. Upon meeting the terms of the scheme by continuing employment for three consecutive years, participating employees can elect to pay
the outstanding balance of their loans, less any dividend payments made on the shares, and have the shares transferred to them. Shares issued
under this scheme vest in 2022.
Critical accounting estimates and judgements
Business combination requires the use of estimates to determine the fair value of the acquisition's assets and liabilities at the date of acquisition.

53SEEKA LIMITED | ANNUAL REPORT 2020
20. Earnings and net tangible assets per share
20202019
Basic earnings per share
Profit attributable to equity holders of the Company ($000s)
15,151 6,884
Weighted average number of ordinary shares in issue (thousands)
1
29,416 29,394
Basic earnings per share
$0.52 $0.23
Diluted earnings per share
Profit attributable to equity holders of the Company ($000s)
15,151 6,884
Weighted average number of ordinary shares in issue plus dilutive employee share scheme (thousands)
1
29,437 29,415
Diluted earnings per share
$0.52 $0.23
Net tangible assets per share
Net tangible assets ($000s)
167,360 146,012
Total ordinary shares issued at the end of the period (thousands)
32,204 32,116
Net tangible asset per share
$5.20 $4.55
1. The prior year denominator number of shares have been adjusted to account for treasury shares.
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of
ordinary shares outstanding during the period, adjusted for bonus elements in ordinary shares issued during the period.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax
effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed
to have been issued for no consideration in relation to dilutive potential ordinary shares.
Net tangible asset per share
Net tangible asset per share is calculated by dividing the Group’s net assets less goodwill by the total shares on issue at the end of the period.
21. Retained earnings and reserves
Retained earnings
The following table details movements in retained earnings.
New Zealand dollars
2020
$000s
2019
$000s
At 1 January
36,659 37,071
Net profit for the year
15,151 6,884
Dividends paid or declared
( 6,721) ( 7,469)
Realisation of permanent gain on sale
1,274 -
Release of share-based payments
- 182
Foreign exchange movement
3 ( 9)
At 31 December
46,366 36,659
Reserves
The following table details the closing balances of reserve accounts.
New Zealand dollars
2020
$000s
2019
$000s
Reserves
Cash flow hedge reserve
( 484) ( 569)
Water share revaluation reserve
2,597 3,325
Land and buildings revaluation reserve
29,097 18,671
Foreign currency translation reserve
( 170) ( 153)
Foreign currency revaluation reserve
108 ( 291)
Share reserve
1,290 529
Total reserves
32,438 21,512

ANNUAL REPORT 2020 | SEEKA LIMITED54
The cash flow hedge reserve is used to record increases and decreases on the revaluation of derivative financial instruments.
The water share revaluation reserve is used to record increases and decreases on the revaluation of Seeka's owned permanent water shares in
Victoria, Australia.
The land and buildings revaluation reserve is used to record increments and decrements on the revaluation of land and buildings.
The foreign currency translation reserve is used to record foreign currency translation differences on the translation of the Group entities results
and financial position. The amounts are accumulated in other comprehensive income and recognised in profit and loss when the foreign operation
is partially disposed of or sold.
The foreign currency revaluation reserve is used to record unrealised gains and losses on the Group's assets and liabilities held in foreign currencies.
The share reserve is used to record the value of option benefits recognised on the Group's grower loyalty and employee share schemes as detailed
in this note.
The Group operates two equity-settled, share-based incentive plans:
–An equity-settled, share-based compensation plan for employees. Shares are periodically issued under this plan.
–An equity-settled, grower loyalty share scheme approved by shareholders on 14 February 2019.
The employee share scheme is managed by a trust deed established September 2014. The grower loyalty share scheme is managed by a trust
deed established 15 March 2019. The trustee for both trusts is 'Seeka Share Trustee Limited', whose directors are also directors of Seeka.
Employee share scheme
Under the employee share scheme, shares are issued to an employee share trust in return for a debt back to the Company. Qualifying employees
are eligible to subscribe to shares held by the trust under the terms of the scheme with the shares to vest at the end of three years. The option
benefit is recognised as a share-based payment expense and recorded as an expense over the vesting period. At the end of the vesting period the
employee has an option to settle any outstanding debt on their shares and have the shares transferred to them.
At the date the shares vest the employee can elect to extend the repayment period by two years with interest charged and the shares held by the
trust as security and only transferred when the debt is fully repaid. Alternatively at the date the shares vest the employee can elect that the shares
do not vest to them and any outstanding debt will be forgiven and the shares sold by the trustees. The proceeds from the shares that vest or from
the sale of shares is used to repay the debt owed to the Company.
The following table details movement in the share reserve relating to the employee share scheme.
New Zealand dollars
2020
$000s
2019
$000s
At 1 January
117 159
Transfer to retained earnings
- ( 182)
Movement in employee share entitlement reserve
153 140
At 31 December
270 117
At balance date the number of shares in respect of which options have been granted to employees and remain outstanding under the scheme was
689,008 (Dec 2019 - 687,074), representing 2.14% (Dec 2019 - 2.14%) of the shares of the Company on issue at that date.
Grower loyalty share scheme
Under the grower loyalty share schemes shares are issued to a share trust in return for a debt owned back to the Company. Qualifying supplying
growers were eligible to subscribe to shares held by the trust under the terms of the offer agreements dated 15 March 2019 and 22 March 2019.
Shares vest after the grower supplies the Company their kiwifruit and avocado crops for the three harvests through to 31 March 2022. The option
benefit is recognised as a discount against revenue over the vesting period. At the end of the vesting period the grower has an option to settle any
outstanding debt on the shares and have the shares transferred to them. Alternatively the grower can elect not to have the shares transferred
to them and any outstanding debt will be forgiven and the shares sold by the trustee. The proceeds from the shares that vest or from the sale of
shares is used to repay the debt owed to the Company.
The following table details movement in the share reserve relating to the grower loyalty share scheme.
New Zealand dollars
2020
$000s
2019
$000s
At 1 January
412 -
Movement in grower share entitlement reserve
608 412
At 31 December
1,020 412
At balance date the number of shares in respect of which options have been granted to growers and remain outstanding under the scheme was
2,061,803 (Dec 2019 - 2,061,803), representing 6.40% (Dec 2019 - 6.42%) of the shares of the Company on issue at that date.