2021 Annual Shareholders Meeting presentations

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Annual Shareholders’ Meeting
9 June 2021
SCALES CORPORATION – 2021 ANNUAL SHAREHOLDERS’ MEETING
The attached presentation will be given at the hybrid (virtual and in person) Annual Shareholders’ Meeting of Scales
Corporation Limited starting at 3.30pm today, at The Piano, 156 Armagh Street, Christchurch, and also online via Lumi
AGM.
1. 2021 Scales Corporation Limited Annual Shareholders’ Meeting – Chair and Managing Director’s Addresses
2. 2021 Scales Corporation Limited Annual Shareholders’ Meeting – Presentation

ENDS


Contacts
Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021 975 999,
email: andy.borland@scalescorporation.co.nz

About Scales Corporation
Scales Corporation is a diversified agribusiness group. It comprises three operating divisions: Horticulture, Food
Ingredients and Logistics. The company’s diverse spread of activities gives Scales broad exposure to New Zealand’s
agribusiness sector. Scales Corporation was founded in 1897 as a shipping business by George Herbert Scales. Today
it has operations across New Zealand, Australia and the United States. Find out more at www.scalescorporation.co.nz.

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Annual Shareholders’ Meeting
9 June 2021
Address by the Chair: Tim Goodacre
[SLIDE 2: AGENDA]
Good afternoon, my name’s Tim Goodacre, I’m Chair of Scales and it’s my pleasure to welcome you all to this, the one
hundred and ninth annual meeting of the company, and seventh since we became a listed company. I’m delighted to
be able to be here today, particularly given the ongoing impact of COVID and the uncertainty that brings.
Last year we held our first ever virtual annual meeting, and this year is our first hybrid meeting. So, whether you are
here in person or joining us online, I’d like to thank you and welcome you all.
As you may recall from last year, Lumi AGM allows shareholders, proxies and guests to attend the meeting virtually.
This year, all attendees will be able to hear and see a live webcast of the meeting. In addition, shareholders and proxies
have the ability to ask questions and vote on resolutions. I’ll provide further details on those matters shortly.
Some housekeeping matters for those of you who have joined us in person. First, I’d like to remind you, as a matter of
courtesy, to turn your mobile phones to silent. Also, if there’s an emergency and we need to leave, please do so
through the marked exits. Staff will be available to help us.
I’m pleased to confirm that we have a quorum and therefore declare the 2021 Annual Shareholders’ Meeting of Scales
Corporation Limited open.
The items of business for this meeting and the resolutions to be considered by shareholders are contained in the
Notice of Meeting which was sent to shareholders on the 24
th
of May. I note here that the meeting Notice wasn’t sent
to shareholders in a timeframe that met the NZX recommendation regarding this. This was a simple oversight and I
trust it has not adversely affected any shareholder. We will ensure this does not happen again for future meetings.
Our order of proceedings is as shown on slide 2: I’ll briefly comment on the highlights of the last 12 months, followed
by a review by Andy Borland, our Managing Director. We’ll then attend to the resolutions, where we’ll cover each
resolution in turn and invite questions specific to those items. I’ll shortly open the online voting and explain the voting
process. Following that I’ll explain the process for asking questions.
Once the meeting is complete, we hope that those of you present will join us for refreshments.
[SLIDE 3: VOTING PROCESS]
With regard to the online voting process, if you’re eligible to vote, a polling icon will appear on your screen – as shown
on slide 3. Selecting this icon will bring up the list of resolutions and present you with voting options. To cast your
vote, simply select one of the options. There’s no need to hit a submit or enter button as the vote is automatically
recorded.

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Up until the time the poll is declared closed, you have the ability to change your vote by simply selecting another
option or you may cancel your vote by clicking ‘cancel’.
You may submit questions on each resolution being put to shareholders using the question process.
For those of you who have joined us in person, those Shareholders who are entitled to vote and proxies who have
discretion as to how they vote, should have received a Voting or Proxy Form when they registered upon arrival at the
meeting. If you completed a postal vote, you don’t need to complete another Voting or Proxy form.
If you haven’t received a Voting or Proxy form, at the time of voting, please go to the Computershare desk in the foyer
where their representatives will be able to assist you. After voting, you should place your Voting or Proxy form in one
of the ballot boxes which will be passed around the room. I’ll invite you to vote after all the resolutions have been
introduced to the meeting.
I now declare voting open on all items of business. For those of you attending via Lumi AGM, the online polling icon
will soon appear, please submit your votes at any time. I’ll give you a warning before I move to close voting.
[SLIDE 4: QUESTION PROCESS]
I’d now like to quickly summarise the process for asking questions.
Online questions can be submitted at any time. To ask a question, press on the Q&A speech bubble icon as indicated
on slide 4. This will open a new screen. At the bottom of that screen there’s a section for you to type your question.
Once you have finished typing, please hit the arrow symbol to send.
Please note that while you can submit questions from now on, we won’t address them until the relevant time in the
meeting. Please also note that your questions may be moderated or, if we receive multiple questions on one topic,
these will be combined. However, if you don’t feel your question has been addressed, please resubmit it.
Finally, due to time constraints, and to ensure all shareholders have a chance to ask a question, I ask that you limit
yourself to asking two questions. We may run out of time to answer all your questions and if this happens, or if there
are technical issues, we’ll make sure that we respond to all questions in writing following the meeting.
For those of you present, we’ll offer you an opportunity to ask questions on, or speak to, each resolution being put to
shareholders at the appropriate time. There will also be an opportunity to ask questions of individual Directors
informally after the meeting.
[SLIDE 5: WELCOME AND CHAIR’S REVIEW]
[cover slide]
[SLIDE 6: WELCOME]
I’d now like to introduce my fellow Directors who are in attendance (either in person, or online). They are:
• Andy Borland, Managing Director;
• Nick Harris, Chair of Scales’ Health & Safety and Sustainability Committee and an independent director;

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• Mark Hutton, Chair of Scales’ Nominations and Remuneration Committee, Chair of Scales’ Finance and
Treasury Committee and also an independent director;
• Alan Isaac, Chair of Scales’ Audit and Risk Management Committee and also an independent director;
• Tomakin Lai, Director, attending online; and
• Nadine Tunley, member of the Health & Safety and Sustainability Committee and an independent director.
I’d also like to note that members of Scales’ management and staff are in attendance as well as our external auditors,
Deloitte, and our lawyers, Anthony Harper and Chapman Tripp. In addition, Kelly Brown, who is our new Future
Director, has also joined us.
[SLIDE 7: CHAIR’S REVIEW]
This time last year we had just emerged from our national lockdown and, since then, the year has contained its
challenges with further localised domestic and global lockdowns, travel restrictions and ongoing supply chain
disruptions. As all Scales businesses continued to be deemed essential, the day-to-day operations continued. All our
apples were picked, shipped and sold and our Food Ingredients division recorded strong results, particularly in our
new business in the USA. In the circumstances it was imperative that we prioritised safety for our staff and make sure
that our team of two and a half thousand were kept safe. We would like to say a very big thank you to all management
and staff members who continued to put in an exceptional effort to deliver our products and services. Andy will speak
more about the impact of COVID in his address.
Out of all that change and uncertainty we were pleased to deliver a solid result in 2020 and we firmly believe that this
was aided by our strategy of diversification in terms of products, services and geographic markets. It was also made
possible by the hard work and commitment of our management and staff.
As mentioned, the business did not stop in 2020. Despite all the challenges thrown at us, we made considerable
progress on our sustainability journey, including our first climate change report. As an agribusiness company,
sustainability and climate change are key factors that we recognise as both critical to our future and need to be
addressed. There is also a growing community expectation that we take action and hence we need to be proactive in
determining what steps we need to take.
Both issues also present opportunities if we are smart and flexible enough. Being seen as a sustainable and responsible
contributor to society can have strong rewards in terms of our Mr Apple brand and the recognition that that delivers
in terms of both increased sales and pricing premiums. This is very much an area of focus for our business currently
and Andy will elaborate further on this later.
Thanks to our strong financial position, we’ve been able to actively research and review growth, investment and
acquisition opportunities. Last year we reported that we continued to look at opportunities to grow our business in
areas where Scales can add value or enhance an existing business through its capital resources, agribusiness
experience and/or export network, especially in China. This search continues.

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It has not been easy to find businesses that we believe are right for us, particularly with the current limitations on
travel. However, there remain a number of promising opportunities in our core areas of petfood ingredients and
logistics in both Australia and the USA. If the opportunities are not in our area of existing or easily acquired expertise,
then the question front of mind is “will Scales ownership ensure they are at least as successful as our existing
businesses?”.
As Andy will touch on later, one area of focus is the wine industry, and we’ll continue to provide updates on progress
in this area as appropriate.
[SLIDE 8: STAFF AND SHAREHOLDERS]
I’ve previously, without reservation, said that Scales would not be the company it is without its strong and positive
culture made possible by the personal commitment of each and every one of our staff. And, as in previous years,
we’ve observed the importance of our RSE workers within our team. Mr Apple has an annual requirement for 1,300
RSE workers. Of these, approximately 60% in any one year are returnees from prior years. In 2020, approximately
900 workers stayed on voluntarily at the end of the season, which greatly assisted the 2021 season. About 600 workers
are still with Mr Apple this year, working in the packhouses or pruning. Visas for these workers will expire in
September. This issue is now taking on critical importance for the 2022 season.
Not only do these workers show remarkable skills and commitment, but they play a vital part in enabling overall
company growth – a 37% increase in RSE workers over the period 2012 to 2020 has coincided with Mr Apple increasing
its permanent staff numbers by 111%. In other words, an increase in RSE worker numbers has led to over a doubling
of local permanent jobs.
We’re also aware that the skills acquired, and wages earned, by these workers are highly beneficial to them, their
whānau and their Pacific communities.
The strong Scales culture comes from the top and we shareholders are fortunate to have a team of highly skilled and
committed senior managers led by our MD Andy Borland. This past year Andy has been recognised externally for his
leadership skills and we congratulate him for the credit he has received. In October last year, Andy was awarded the
INFINZ Leadership Award and, just last month, he received an Honorary Doctorate of Commerce from Lincoln
University.
As part of our responsibility as an equal opportunities employer, we were pleased to undertake our inaugural pay
equality review during 2020. We were pleased with the results that found that we offer pay equity, which echoes our
belief that pay rates should be reflective of role, experience, responsibility and tenure, not gender. This will remain
an area of key focus for us.
[SLIDE 9: GOVERNANCE AND ETHICS]
Notwithstanding the logistical challenges presented by COVID, it was important to the Board that good governance
practices should prevail throughout so, as was the case for many businesses, Zoom meetings became the norm, with
Board meetings undertaken on this platform when needed.

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As we advised in the Notice of Meeting, and in our Corporate Governance Statement, Scales does not have a Board
tenure policy. The Board does however recognise that a regular refreshment programme leads to the introduction to
the Board of new perspectives, skills, attributes and experience.
Consequently, shareholders can expect to see a planned and orderly succession of the existing Board over time. As
always, new Directors will be required to have appropriate experience and qualifications, with increased Board
diversity also a criterion. It is our intention to conduct a Board skills matrix exercise, as we have in the past, to identify
requirements and ensure there are no skills gaps.
As the Board is refreshed, Shareholders can expect to see an overlap between new appointments and retirements.
This will enable a more effective transition for new Directors.
And, as I mentioned earlier, we’re delighted to announce that we’re continuing our participation in the Institute of
Director’s Future Director programme, with the appointment of Kelly Brown, a brand and marketing consultant with
extensive knowledge of the FMCG category including wine, who is our next, and fifth, Future Director.
Lastly, we continue to refresh our ethics and other policies as appropriate.
[Pause]
I’d now like to hand you over to Andy, who’ll give you a broader update on how COVID-19 has impacted the group,
together with a review of 2020 and an update on sustainability and business operations for each of our trading
businesses. Following Andy’s presentation, we’ll move to the formal business of the meeting. As always, we welcome
feedback on any of the matters raised during today’s presentation or other general matters in relation to the Group.
Address by the Managing Director: Andy Borland
[SLIDE 10: MANAGING DIRECTOR’S REVIEW]
[Cover slide]
[SLIDE 11: MANAGING DIRECTOR’S REVIEW]
Thanks Tim, and good afternoon ladies and gentlemen. On the current slide, you’ll see the topics that I’ll cover in my
presentation today, including:
• An update in respect of COVID-19;
• A review of 2020;
• An update on sustainability;
• A summary of our individual business’ performance; and
• Commentary on the current year.
[SLIDE 12: COVID-19 UPDATE]
Starting with COVID.

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[SLIDE 13: COVID-19 – THE LONG TAIL OF COVID-19]
COVID continued to impact the group throughout 2020, is impacting 2021 and may also impact the 2022 apple season,
resulting in us operating in a ‘new normal’. As we mentioned last year, being essential businesses, we operated
throughout all lockdowns and level changes, having implemented protocols quickly in order to operate safely. A
number of these protocols remain in place today with, for example, gloves and masks being required to satisfy part of
our China export regulations. The photos in this slide show some of the safety measures that were adopted at the
start of the pandemic, which are still in place today.
The impact of COVID-19 on the entry of RSE workers into New Zealand was well publicised in the media and, like others
in the horticulture industry, we were very cognisant of the restrictions in place. As Tim mentioned, the RSE scheme
continues to be of huge importance to both the horticulture industry and Mr Apple, as well as to the workers and their
whanau – they’re a critical part of our success. Accordingly, we strongly support the continuation of the scheme in
the future and will work with the appropriate industry and government organisations to ensure its ongoing operation.
Also reported in the media is the impact that COVID is having on global supply chains, including congestion at both
domestic and overseas ports. This, in turn, is affecting global markets and indications are that this will continue at
least until the end of this calendar year.
As a result, we expect ongoing ripples from the pandemic to impact our current year results. More on that later.
[SLIDE 14: YEAR IN REVIEW]
I’ll now quickly recap on some of the financial and operational highlights of the 2020 financial year.
[SLIDE 15: OUR NUMBERS]
Slide 15 depicts some financial and volumetric measures of the group in 2020, a few of which I’ll go into in more detail
in subsequent slides. Encouragingly, despite the national lockdown happening at our busiest period last year, we
exported a record number of our own-grown apples and sold a record amount of petfood ingredients. We also made
significant steps in our Sustainability journey – and I’ll provide more information on that in the next section.
[SLIDE 16: TRENDS IN GROUP FINANCIAL PERFORMANCE]
The next slide depicts a summary of our earnings over the last 5 years and, as I mentioned last year, reflect the group’s
M&A activity particularly over the 2018 and 2019 period. Pleasingly, despite the difficulties that COVID threw at us
last year, we managed a slight increase in Underlying EBITDA in 2020.
[SLIDE 17: GROUP FINANCIAL PERFORMANCE]
Moving on to some more detail on our 2020 results.
We encountered a slight, 3%, decrease in revenue in 2020, together with a 7% decrease in Underlying Net Profit.
Strong growth in the Food Ingredients division offset lower earnings in the Horticulture division, the latter being due
to the effect and timing of global lockdowns. This led to a significant change in the earnings mix between divisions as
compared to previous years.

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We also reported a lower Net Profit, as our results in 2019 included significant gains on the sales of Polarcold and
Meateor as well as a revaluation gain on the establishment of Meateor New Zealand (our joint venture with Alliance
Group).
[SLIDE 18: 2020 DIVISIONAL HIGHLIGHTS]
Slide 18 summarises some highlights for the divisions in 2020.
In addition to the record crop at Mr Apple, Andrew van Workum and his team oversaw the construction of a new
coolstore at Whakatu, and I’ll provide some more information about this build in a later slide.
Food Ingredients generated significant increases in revenue and Underlying earnings due, in part, to global growth in
the petfood industry and John Sainsbury, together with Brett Frankel in the USA, continue to steer this division to new
heights. As part of the growth, Shelby secured a new toll processing plant in Kansas to help satisfy demand.
Logistics successfully navigated the global supply chain disruptions caused by COVID in 2020 and delivered a solid
result. We believe that the impact of COVID was lessened by the division’s focus on the essential agribusiness sector
and thank Kent Ritchie for his ability to successfully navigate the difficulties encountered.
[SLIDE 19: TRENDS IN DIVISIONAL PERFORMANCE]
Moving on to slide 19, where the change in mix of divisional earnings is shown. As you can see from the graphs, Food
Ingredients took a considerable step in 2020 towards its long-run Underlying EBITDA target of $25 million, and we
believe it continues to be an attractive industry for investment.
[SLIDE 20: BALANCE SHEET]
Turning now to our balance sheet, which shows a relatively steady situation.
Increases in Capital Employed and Net Assets were due primarily to capital expenditure on the new Mr Apple coolstore
and orchard redevelopment, amongst other projects, as well the revaluation of land and buildings.
And we maintained a strong net cash position as at 31 December 2020 of almost $98 million, providing us with the
ongoing ability to invest in appropriate growth opportunities as and when they arrive.
[SLIDE 21: SUSTAINABILITY UPDATE]
The next section I’d like to cover is sustainability.
[SLIDE 22: SUSTAINABILITY OVERVIEW]
Despite the disruption and distraction of COVID-19, Karen Morrish and her team made considerable progress in our
Sustainability journey.
We partnered with thinkstep-anz to update our stakeholder engagement and materiality exercises to ensure that our
focus remained current – this was last done in 2016. This exercise involved undertaking a number of interviews,
surveys, workshops and reviews, with the outcome being shown in the table on this slide. This list will provide our
Sustainability focus for future periods.

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[SLIDE 23: PEOPLE ARE AT THE HEART OF WHAT WE DO]
Slide 23 summarises a few statistics about our workforce. However, our staff are not just numbers to us.
In the early days of COVID there were feelings of anxiety and disbelief, but we quickly realised that by being agile and
dynamic we could make our workplaces and team members safe and secure – this was our primary concern. In turn,
our staff and management pulled together, determined to weather the storm. We believe the resilience gained over
the last 12 to 18 months has made us a stronger team and that it’ll continue to benefit us in 2021 and beyond.
[SLIDE 24: PEOPLE, HEALTH & SAFETY AND MARKETPLACE]
The next slide summarises a selection of the health and safety initiatives that were expanded or developed during
2020. Health and safety is integral to our work practices and continues to be the top priority of the Board and of the
group in general. Accordingly, we have an ongoing focus on injury prevention and management.
We also continue to be aware of the needs and requests of our external stakeholders. As a result, we realigned our
Good Agricultural Produce certifications within Mr Apple and undertook a Social Practice audit of our supply chain for
worker welfare practices. In addition, we’re focussing on traceability including a move, where possible, to digital
options to streamline and fast track approvals.
[SLIDE 25: ENVIRONMENT]
Moving onto slide 25 and the environment.
We’re acutely aware of the impact of our business operations on the world and its environment and realise that our
actions now will have a long-lasting effect. We continue to take part in the Toitū carbonreduce programme and our
emission reduction initiatives are now into their third year, showing an ongoing reduction in emission intensity.
We have an ongoing commitment to align our business practices to our chosen United Nations Sustainable
Development Goals and are pleased to report that we exceeded our goals in 3 out of the 4 areas. We have also
investigated and understand the reasons for the increase in our fourth, fuel use, goal and will continue to monitor this
in future periods.
[SLIDE 26: ENVIRONMENT (CONT.)]
2020 also saw the preparation of our inaugural TCFD (or climate change) report, which explores the impacts of climate
change on our business and summarises the direction in which we’re going to address or adapt to those impacts. The
report was based on the 4 themes contained within the TCFD’s recommended framework, being Governance, Strategy,
Risk Management and Metrics & Targets. Over time our reporting will evolve into including scenario modelling,
strategies and our increasing knowledge about our best future path.
Also of note was that Mr Apple made a submission as part of the TANK catchments process to secure water quality
and quantity for the future within Hawke’s Bay. And we participated in an industry pilot for farm Environmental Plans
as part of the TANK review.

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[SLIDE 27: BUSINESS UPDATE]
Moving on to an update of our divisional businesses.
[SLIDE 28: HORTICULTURE – MARGIN IMPROVEMENT]
We’ve previously mentioned that we’re experiencing headwinds in margin in the Horticulture division and this
continues to be a focus.
The completion of Mr Apple’s new coolstore at Whakatu is providing both operational and logistic efficiencies and has
allowed us to sell our Havelock North packhouse, resulting in greater centralisation of our post-harvest operations.
The second phase of our orchard redevelopment was completed during winter 2020 resulting in over 140 hectares of
orchard planted or redeveloped since 2018. We focussed on planting high-value varieties such as Posy
TM
and Dazzle
TM
,
as well as incorporating our new ‘2-dimensional’ planting techniques, which allow pruning, thinning and picking
efficiencies. We anticipate higher prices and yields from 2023 onwards, as these orchards reach commercial scale.
We also note that the availability and cost of labour has changed. Whilst continuation of the RSE scheme at pre-COVID
levels continues to be critical to our operations, we intend to speed up automation initiatives, particularly in the post-
harvest area. We anticipate committing to selected automation initiatives this current year.
[SLIDE 29: HORTICULTURE – VOLUMES AND PRICING]
The Horticulture division continued to exceed expectations around volumes. At 3.92 million TCEs of own-grown
volumes, 2020 represented another record production year and, together with our external growers, the division sold
5.74 million TCEs. Whilst total export volume was 4 per cent down on 2019, Fern Ridge replaced a portion of its apple
volumes with kiwifruit sales, and these weren’t included in the reported volumes.
Pleasingly, sales of our premium volumes continued to grow, with a 4 per cent increase on 2019, accounting for around
57 per cent of all exports.
We encountered some tightening of prices of our premium varieties into the Asia markets due to the impact and
timing of lockdowns in 2020 - as an example the China lockdown coincided with Chinese New Year, which is typically
a good period for apple sales. However, the decrease in pricing for premium varieties was partially offset by firmer
prices in European markets – reinforcing the benefits of our strategy to operate in diversified markets and channels.
[SLIDE 30: HORTICULTURE – MARKET STRATEGIES]
It’s important that the Horticulture division continues to identify innovative strategies for market penetration,
particularly in the Asia and Middle East markets, as these markets continue to make up a significant proportion of our
sales at 62% of exports. China itself accounted for around 17% of export volumes in 2020, in line with 2019. We’re
also continuing to develop and grow our retail and e-commerce sales channels, particularly in China where these
channels now account for over half of all in-market sales.

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So, in 2020, we launched Dazzle
TM
through a high-end Chinese retailer. And new innovations for 2021 include opening
a flagship store on TMALL, a business-to-consumer online retail platform operated by the Alibaba Group, which allows
international businesses to sell and market branded goods direct to China consumers.
[SLIDE 31: FOOD INGREDIENTS – PERFORMANCE]
Moving on to Food Ingredients, on slide 31, and its exceptional year.
2020 saw the division taking advantage of the growth in global petfood demand. We believe that part of the growth
can be attributed to an increase in pet ownership and adoption rates through the pandemic, together with other
consumer trends such as the humanisation of pets.
This resulted in significant increases in both revenue and profitability for Food Ingredients, and reflected the benefit
of the division’s geographical and protein diversification strategies. With Underlying EBITDA of over $23 million (a 71
per cent increase on 2019) the division took a considerable step towards its long-run EBITDA target of $25 million.
To help satisfy this demand, Shelby entered into a new third-party warehousing and processing agreement with a toll
processor in Dodge City, Kansas. This brings the number of processing facilities at Shelby to 8 - its own facility in
Amarillo, Texas, plus 7 toll processing facilities throughout the United States.
Profruit volumes were also up compared to last year, with a 6 per cent increase due to high fruit brix, good yields and
increased retail demand.
[SLIDE 32: FOOD INGREDIENTS – FUTURE STRATEGY]
Market indications suggest that the global petfood industry will continue to grow, with one market research company
suggesting it will increase at a compound annual growth rate of 6 per cent over the period 2019 to 2029. Anecdotally,
we’re aware of plans for at least 2 new mega-petfood plants to be built in the United States this year.
With a global strategy of being a key provider of petfood ingredients to a wide range of international brands, we’re
continuing to actively analyse and review organic and transactional opportunities to expand our geographical presence
and protein offering. Travel restrictions in place during 2020 limited our ability to pursue acquisition opportunities as
well as limiting our ability to develop new supply and offtake relationships. However, we continue to explore
opportunities as constraints allow.
[SLIDE 33: LOGISTICS - UPDATE]
Moving on to slide 33 and a summary of the Logistics division.
COVID and lockdowns provided a number of challenges for Logistics, with supply chain disruptions around the world
resulting in a decrease in the volumes of both ocean and air freight for the division. However, the impact of COVID in
2020 was lessened by the division’s focus on the essential agribusiness sector, and it reported a solid result with both
Underlying EBITDA and EBIT up on last year.

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[SLIDE 34: OUTLOOK]
Moving on to the outlook for 2021.
[SLIDE 35: TRADING UPDATE – HORTICULTURE]
Within the Horticulture division, the season was affected by weather events during the key growing period. As a result,
Mr Apple’s own-grown volumes are lower than originally forecast and there has been a significantly lower level of
pipfruit exports from the Tasman region, impacting on third party export volumes.
4.8 million TCEs have been picked, and packing is ongoing.
We anticipate that the lower-than-forecast fruit volumes will be partly offset by higher in-market prices. The outlook
for Europe and the UK is positive, with a lower national crop anticipated, and early sales to Asia are encouraging.
Sales to date cover around one third of the harvest and are broadly consistent with the same time last year. However,
we’re continuing to experience some disruptions in markets and shipping due to the continuing effects of COVID, and
the full impact of this will only be known at end of the season.
[SLIDE 36: TRADING UPDATE – FOOD INGREDIENTS AND LOGISTICS]
The pet food market in the USA continues to perform well, resulting in good demand across Food Ingredient’s
businesses and proteins. However, supply chain disruptions continue to present the division with challenges, which
we anticipate will continue for the foreseeable future.
Logistics is also encountering significant global supply chain disruptions, with equipment, shipping schedules and port
congestion issues. In addition, its agricultural volumes were impacted by the weather events during the growing
season. We expect that 2021 will be a challenging year for the division, and for the logistics industry in general.
[SLIDE 37: OUTLOOK – GROUP]
Whilst the group is benefiting from its overall diversified agribusiness strategy, we anticipate that the impact of global
lockdowns together with lower levels of fruit exports and logistics issues will affect our current year results.
Earlier this year, we amended our full year 2021 guidance and, based on current business conditions, we reiterate
these earning levels at the present time.
However, we continue to look to the future and hope to progress both organic and external growth opportunities
including, as previously announced, opportunities in the wine sector. Further details on this will be provided at the
appropriate time.
And that concludes my presentation.
We’ll answer questions following the resolutions but, in the meantime, I’ll pass back to Tim to cover the formal part
of today’s meeting.

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Address by the Chair: Tim Goodacre
[SLIDE 38: ORDINARY RESOLUTIONS]
Thanks, Andy.
We’ll now move to the business of the meeting. All items of business are ordinary resolutions and are required to be
passed by a simple majority of votes.
The resolutions that we’ll be voting on today are as follows:
• Resolution 1: Authorisation for the Directors to fix the auditor’s remuneration for the coming year.
• Resolution 2: Re-election of myself, Tim Goodacre, as a Non-Executive Independent Director.
• Resolution 3: Re-election of Mark Hutton as a Non-Executive Independent Director.
Current best practice for Shareholder voting is by way of poll. Accordingly, I require that a poll be held for each of the
resolutions.
I and my fellow directors hold the following undirected proxies:
• With respect to Resolution 1, authorisation for the Directors to fix the auditor’s remuneration for the coming
year: 261,614 shares.
• With respect to Resolution 2, re-election of Tim Goodacre as Non-Executive Independent Director: 270,844
shares.
• With respect to Resolution 3, re-election of Mark Hutton as Non-Executive Independent Director: 270,844
shares.
Your Board supports these resolutions and we intend to vote all these shares in favour of these resolutions.
[SLIDE 39: RESOLUTION 1]
I’ll now move onto each of the resolutions.
Resolution 1 relates to the remuneration of auditors. This proposed ordinary resolution is to authorise the Directors
to fix the auditor’s remuneration for the coming year. In accordance with the Companies Act, Deloitte has been
automatically reappointed as Scales’ auditor. As is usual with audit fees, due to the complexity and changing nature
of the company’s affairs, it is not possible to fix the remuneration at the beginning of the year.
I now move, as an ordinary resolution, that the Board is authorised to fix the auditor’s remuneration for the coming
year.
Are there any questions on this resolution?
[Q&A discussion on resolution 1, if any]
Thank you. We’ll now move to the next resolution, which I’ll ask Alan Isaac to introduce.

14

[SLIDE 40: RESOLUTION 2]
Address by Alan Isaac
Thanks Tim.
Resolution 2 relates to the re-election of Tim Goodacre.
The NZX Listing Rules state that Directors must not hold office (without re-election) past the third annual meeting
following the Director’s appointment, or 3 years, whichever is longer. Accordingly, Tim Goodacre is required to retire
at this meeting.
Tim was first appointed to the Board in 2014 and a brief biography for him was included in the Notice of Meeting.
Tim, being eligible, offers himself for re-election, and the Board unanimously supports his re-election and recommends
that shareholders vote in favour of Resolution 2.
I now invite Tim to briefly address the meeting on his proposed re-election.
Over to you Tim.
[Personal remarks from Tim]
Thanks Tim.
I now move, as an ordinary resolution, having retired by rotation, that Tim Goodacre be re-elected as a Non-Executive
Independent director.
Are there any questions on this resolution?
[Q&A discussion on resolution 2, if any]
Thank you. We’ll now move to the next resolution, and I’ll pass you back to Tim.
[SLIDE 41: RESOLUTION 3]
Address by the Chair: Tim Goodacre
Thanks Alan.
Resolution 3 relates to the re-election of Mark Hutton.
The NZX Listing Rules state that Directors must not hold office (without re-election) past the third annual meeting
following the Director’s appointment, or 3 years, whichever is longer. Accordingly, Mark Hutton is required to retire
at this meeting.
Mark was first appointed to the Board in 2011 and a brief biography for him was also included in the Notice of Meeting.
Mark, being eligible, offers himself for re-election, and the Board unanimously supports his re-election and
recommends that shareholders vote in favour of Resolution 3.
I now invite Mark to briefly address the meeting on his proposed re-election.

15

Over to you Mark.
[Personal remarks from Mark]
Thanks Mark.
I now move, as an ordinary resolution, having retired by rotation, that Mark Hutton be re-elected as a Non-Executive
Independent director.
Are there any questions on this resolution?
[Q&A discussion on resolution 3, if any]
Thank you.
We’ll now move to finalise the voting and will answer general questions.
[SLIDE 42: VOTING & QUESTIONS]
Once all the votes have been cast, they will be counted by the Company’s share registrar, Computershare, and
scrutinised by the Company’s auditor. The results of today’s meeting will be released to the NZX on the completion
of verification of voting.
If you have not already done so, please cast your votes now, and give your voting forms to Computershare, while we
take questions.
[SLIDE 43: QUESTION PROCESS – REMINDER]
If there are any questions on the financial results, the business update or any other matters you would like to raise,
please do so through the Lumi Q&A function. A reminder of the process is shown on screen.
For those of you present, I’ll open the floor to any questions. I want to remind everyone that if we run out of time to
answer all question now, we will respond to any additional questions in writing following the meeting.
[Q&A if any]
[After the Q&A process]
Ladies and gentlemen that concludes our discussion on the items of business.
In a couple of minutes, I’ll close the voting system. Please ensure that you have cast your vote on all resolutions. I’ll
now pause to allow you time to finalise those votes.
[wait for 90 seconds]
Voting is now closed.
The results of all votes will be released to the NZX later today.
Ladies and gentlemen, there does not appear to be any further business for discussion, so that brings us to the end of
formal business for Scales Corporations’ 2021 Annual Shareholders’ Meeting. This hybrid meeting has been another

16

first for the Company and I would like to thank you all for taking the time to connect with us today, be it online or in
person.
I now declare the meeting closed. I invite those present to stay on for light refreshments and the opportunity to have
informal discussions with Directors. Thank you.
[ENDS]

---

Scales Corporation Limited
Growing your Diversified Agribusiness
2021 Annual Shareholders’ Meeting
9 June 2021

2
I. Welcome and Chair’s Review
II. Managing Director’s Review
1. COVID-19
2. Year in Review
3. Sustainability Update
4. Business Update
5. Outlook
III. Ordinary Resolutions
IV. Voting and Questions
Agenda
Scales –2021 Annual Shareholders’ Meeting

3
•When the poll is open, the vote will be
accessible by selecting the voting
icon at the top of the screen
•To vote simply select the direction in which
you would like to cast your vote, the selected
option will change colour
•There is no submit or send button, your
selection is automatically recorded
Voting Process
Scales –2021 Annual Shareholders’ Meeting

4
•When the Question function is available, the
Q&A icon will appear at
the top of the app
•To send in a question, simply click in the ‘Ask a
question’ box, type your question
and the press the send arrow
•Your question will be sent immediately for
review
Question Process
Scales –2021 Annual Shareholders’ Meeting
Received

I. Welcome and Chair’s Review

6
Welcome
•Welcome to all shareholders and stakeholders, both in person and online
•A challenging year that included lockdowns, travel restrictions and supply chain disruptions
•Safety continued to be a priority for our team of 2,500
Scales –2021 Annual Shareholders’ Meeting

7
Chair’s Review
•Benefited from sound foundations and diversified agribusiness strategy
•Pleasing Underlying earnings results
•Management and staff exemplified unity and teamwork
•Considerable progress in sustainability, including an inaugural climate change report
•Continue to actively research and review growth, investment and acquisition opportunities
A solid result in a turbulent year
Scales –2021 Annual Shareholders’ Meeting

8
Staff and Shareholders
•As an essential business our staff continued to work during difficult and uncertain times
•Results reflect hard work, skill and positive manner of all team members
•Importance of RSEworkers to assist with both harvest and post-harvest activities validated:
Remarkable skills, commitment and productivity shown by workers
Vital role in enabling overall company growth -a 37% increase in RSEworkers over the period 2012 to 2020 has assisted Mr Apple to
increase its permanent staff numbers by 111%
Both skills acquired and wages earned are highly beneficial to RSEworkers, their whānauand their Pacific communities
•Recognition of Andy Borland’s leadership skills:
Winner of the INFINZLeadership Award 2020
Recipient of an Honorary Doctorate of Commercefrom Lincoln University
•Inaugural pay equality review undertaken with pleasing results
•Paid dividends as scheduled and met earnings guidance
Scales –2021 Annual Shareholders’ Meeting
Andy Borland receiving his INFINZLeadership Award
with Nick Scarlett (Caldwell Partners)

9
Governance and Ethics
•Board meetings undertaken via Zoom, when required
•Commitment by the Board to a planned and orderly succession programme
•Continued participation in the Institute of Director’s Future Directorprogramme:
Appointment of Kelly Brown, a brand and marketing consultant with extensive knowledge of the FMCG category
including wine, as our next, and fifth, Future Director
•Ethics policies refreshed:
Anti-fraud, bribery and corruption
Travel and related expenses
Gifts and hospitality
•New policy launched on Sensitive Information (Private, Commercially Sensitive and Confidential)
Governing through a pandemic
Scales –2021 Annual Shareholders’ Meeting

II. Managing Director's Review

11
Managing Director’s Review
1. COVID-19
2. Year in Review
3. Sustainability Update
4. Business Update
5. Outlook
Scales –2021 Annual Shareholders’ Meeting

COVID-19

13
The Long Tail of COVID-19
•Agility of all group businesses allowed them to implement protocols quickly and operate safely during the
initial lockdown and subsequent alert level changes
•A number of COVID-19 protocols remain in place, gloves and masks required for China export requirements
•The importance of the RSEscheme continues to be evidenced and we strongly support its continuation to at
least pre-COVID levels
•Continued uncertainty in worldwide markets together with supply chain disruptions
•COVID-19 impacts have and will be felt in the 2020 results, 2021 results (as previously reported), and may
potentially also impact the 2022 apple season
A ‘new normal’
Scales –2021 Annual Shareholders’ Meeting
Perspex screens remain in place and facemasks continue to be worn

Year in Review
Chantelle Ramage, General Manager Profruit, outside Profruit’snewly acquired and painted building

15
Our Numbers
* Mr Apple, outside growers and Fern Ridge Fresh
** Includes 100% of volumes from Meateor NZ; i.e. total volumes controlled directly and indirectly by the Meateor Group
Scales –2021 Annual Shareholders’ Meeting
First
climate change
report prepared
First
pay equality
review completed
5,739,000
TCEs of apples exported
*
(2019: 5,953,000)
3,915,000
TCEs of own-grown
apples exported
(up 2% on 2019)
35,502 TEUs
of ocean freight managed
(2019: 39,438 TEUs)
$470.7m
revenue
(2019: $484.6m)
19.0 cents
dividends declared
per share
Third
carbon footprint
certification completed
115.7 MT
petfood ingredients sold
**
(up 4% on 2019)

16
Trends in Group Financial Performance
•Movement in Underlying EBITDA from 2019 onwards reflects changes in Group structure
•Historic results are unadjusted for businesses that have been sold or acquired
Scales –2021 Annual Shareholders’ Meeting
$67.9m
$62.0m
$67.1m
$52.7m
$53.9m
20162017201820192020
Underlying EBITDA
$38.6m
$32.7m
$35.8m
$36.4m
$33.8m
2016 2017 2018 2019 2020
Underlying NPAT

17
Group Financial Performance
•Revenue of $470.7m, decrease of 3% on 2019
Change in revenue and earnings mix between the divisions
•Underlying EBITDA of $53.9m, increase of 2% on 2019
•Underlying Net Profit of $33.8m, decrease of 7% on 2019
Reflects lower interest income
•Reported Net Profit of $26.6m:
2019 includes gain on sale of Polarcold and gain on sale / revaluation gain on establishment of Meateor NZ
2020 includes impairment of non-current assets (positive land & buildings revaluations offset by declining on-orchard valuations)
Solid result in a disruptive year
Scales –2021 Annual Shareholders’ Meeting
Income Statement
RevenueEBITDANPAT
$Millions2020 2019
% chg.
1
2020 2019
% chg.
1
2020 2019
% chg.
1
Underlying470.7 484.6-3%53.9 52.72%33.8 36.4-7%
NZ IFRS & other adjustments:
Gain on sale of Polarcold, net of interest - - - 68.9
Fair value gain on recognition of investment in joint venture - 9.8 - 9.8
Gain on disposal of Meateor New Zealand business - 9.8 - 9.8
Impairment of non-current assets
2
(4.3) - (4.3) -
NZ IFRS 16 Leases10.3 9.5(0.7) (1.0)
Other NZ IFRS adjustments(3.1) (1.9)(2.1) (2.3)
Reported
3
470.7 484.6 -3% 56.7 79.9 -29% 26.6 121.6 -78%
Notes:
1. %'s are calculated based on non-rounded figures, figures may not sum due to rounding.
2. Further Fixed Asset (Land & Buildings) positive revaluations offset by declining on-orchard valuations recorded in Reported EBITDA.
3. Earnings are shown before the deduction of share of NPAT for Non-Controlling Interests (Fern Ridge and Shelby) of $5.6m (2020) vs $3.6m (2019).

18
2020 Divisional Highlights
Horticulture
•Record export volumes of 3.92 million TCEs, strong sales into Europe and UK
•Higher than expected Mr Apple export crop during ongoing orchard development
•Construction of a new coolstoreat Whakatu
H
Food Ingredients
•4% increase in volumes sold to 110,970 MT, due partly to growth in global petfood demand
•Significant increases in revenue and Underlying earnings
•New processing plant in Dodge City, Kansas
FI
Logistics
•Slight increase in Underlying earnings
•Impact of COVID-19 lessened due to agribusiness sector focus
L
Scales –2021 Annual Shareholders’ Meeting

19
Trends in Divisional Performance
Scales –2021 Annual Shareholders’ Meeting
* Previously Storage and Logistics up to and including 2018. Showing performance of continuing business only
$45.3m
$38.9m
$42.6m
$39.7m
$31.4m
2016 2017 2018 2019 2020
Horticulture
Underlying EBITDA
$9.2m
$8.0m
$10.2m
$13.5m
$23.1m
2016 2017 2018 2019 2020
Food Ingredients
Underlying EBITDA
$2.3m
$3.3m
$4.9m
$3.3m
$3.4m
2016 2017 2018 2019 2020
Logistics
*
Underlying EBITDA
•The graphs below demonstrate the change in earnings amongst the divisions in 2020

20
Balance Sheet
•Change in Capital Employed
*
reflects:
Capital expenditure (Mr Apple coolstore, orchard
redevelopment and other projects)
Revaluation of land and buildings

Movement in Net Cash reflects increased
capital expenditure

Increase in Other Liabilities due to an increase
in deferred tax liabilities
Steady financial position
Scales –2021 Annual Shareholders’ Meeting
Financial Position
$Millions2020 2019 2018
Capital employed
*
293.0 280.6 261.3
Return on Capital Employed
15% 16% 17%
Net Cash / (Interest Bearing Debt) 97.6 104.9 (62.2)
Other Liabilities(112.3) (107.4) (36.4)
Net Assets378.4 359.0 249.9
* Capital Employed is calculated as non-current assets plus working capital (excluding cash, overdrafts
and borrowings, NZ IFRS 16 right of use asset and lease liability, dividends declared, derivative assets /
liabilities and employee loans)

Sustainability Update

22
Sustainability Overview
•Maintained business operations during lockdowns, including during
peak harvest and production period
•9% reduction in carbon footprint emissions (that we can control)
•48% reduction in waste to landfill over a 3 year period
•In-depth materiality review undertaken:
Partnered with thinkstep-anz
Refreshed the initial review completed in 2016
Included a ‘Three Horizons’ workshop to obtain a futurist view of the business
Provides a fresh focus for future periods, strategy developed
•Inaugural Task Force on Climate-related Financial Disclosures (TCFD)
report presented in annual report
Scales –2021 Annual Shareholders’ Meeting
Considerable progress, despite disruptions of COVID-19

23
People are at the Heart of What we do
35
operational sites
~80%
of training incorporates
health & safety
~1,300
RSEworkers
34%
permanent
female staff
30%
female senior
management staff
>500
permanent staff
members
Scales –2021 Annual Shareholders’ Meeting

24
People, Health & Safety and Marketplace
People and Health & Safety
•Initiatives included:
A full cross-team critical risk review
Further development of the company-wide forklift training framework (including the
introduction of a forklift simulator for training and assessment)
Guarding of risk areas and traffic management upgrades
Cross-company training, learning and auditing
Roll out of employee assistance programmes
•Continued focus on injury prevention and management in particular as a
result of fatigue
•Pay equality review undertaken, with pleasing results
Marketplace
•Realigned our Good Agricultural Produce certifications
•GRASP
*
audit of our supply chain for worker welfare practices undertaken
•Ongoing focus on traceability and our digital transformation strategy
Health and safety –an integral part of our everyday practices
Scales –2021 Annual Shareholders’ Meeting
* GLOBAL GAP Risk Assessment on Social Practice

25
Environment
•Third annual ToitūEnvirocarecarbonreduce
certification undertaken, with an ongoing
decrease in emissions intensity
•Exceeded our goals in 3 out of our 4 chosen UN
Sustainable Development Goals:
Significant reductions in paper use, electricity
consumption and waste to landfill
Increase in fuel use due to increased fuel use for
irrigation, a longer packing season and extended
occupancy of RSEaccommodation
•Ongoing work on carbon sequestration in
respect of apple tree plantings
•In-house climate change workshop held
Managing our environmental footprint
Scales –2021 Annual Shareholders’ Meeting
UN Sustainable Development Goals
Mr Apple Carbon Footprint Summary

26
Environment (cont.)
•Inaugural TCFD(climate change) report prepared to explore
the impacts of climate change on our business
•Based on the 4 themes contained within the TCFD’s
recommended framework of:
Governance
Strategy
Risk Management
Metrics & Targets
•Submission made in respect of Hawke’s Bay water quantity
and quality review (TANK
*
)
Looking to the environmental future
Scales –2021 Annual Shareholders’ Meeting
TCFD themes
* Tūtaekurī, Ahuriri, Ngaruroro and Karamūcatchments

Business Update

28
Horticulture – Margin Improvement
•New Mr Apple coolstoreat Whakatucommissioned February 2021:
Finished on time and on budget
Providing operational and logistics efficiencies
Allowed sale of the Havelock North packhouse, achieving greater centralisation
•Increased yields and prices from redeveloped orchards:
Over 140 ha of orchard planted / redeveloped between 2018 and 2020 predominantly
in high-value, branded, Dazzle
TM
Plantings adopt new ‘2-dimensional’ techniques enabling pruning, thinning and picking
efficiencies
Commercial scale expected from 2023 onwards
•Acceleration of automation initiatives particularly in
post-harvest facilities:
Availability and cost of labour has changed
Expect to commit to automation initiatives through 2021
Afocus on initiatives to maintain margins
Scales –2021 Annual Shareholders’ Meeting
Inside the new Whakatucoolstore

29
Horticulture – Volumes and Pricing
•Own-grown volumes of 3,915kTCEs (an increase of 2%):
External grower volumes down 14%, due primarily to a portion of Fern Ridge’s apple volumes being replaced by sales of kiwifruit
Increase of 4% in premium variety volumes
•Benefit of diversified channels and markets observed during 2020:
Pricing in different regions affected by timing of lockdowns
Impact on logistics and purchasing patterns
Economic effect on consumers
Change in mix of varieties purchased
•Continued focus on redeveloping orchards to redder, sweeter varieties:
Between 2008 and 2020, we have redeveloped over 500 ha of orchard to premium varieties
Own-grown volumes up but prices impacted by lockdowns in 2020
Scales –2021 Annual Shareholders’ Meeting
1,901
2,161
2,238
2,170
2,325
2,478
2,639
2,738
1,966
1,661
1,678
1,633
1,609
1,619
1,626
1,631
3,867
3,822
3,915
3,803
3,933
4,097
4,264
4,369
2018201920202021F2022F2023F2024F2025F
Mr Apple Own Export Volumes (TCE 000s)
Premium VarietiesTraditional Varieties

30
Horticulture – Market Strategies
•Committed to being the preferred NZ apple brand in the international marketplace:
Exposure to a broad range of markets enables Mr Apple to transfer sales to respond to market factors
•Investing in the important Asia and Middle East markets:
Accounted for 62% of export sales in 2020, in line with 2019
Sales to China in 2020 represented ~17% of export volumes (2019: 17%)
•Product development and innovations in 2020 included launch of Dazzle
TM
through
high end Chinese retailers such as Hema:
Retail trade (e-commerce, supermarket and fruit chain stores) represented over 50% of all Mr Apple
China sales in 2020
•Future innovations include:
Flagship store on TMALL(Alibaba) to be operational Q22021, to market and sell
a range of Mr Apple products directly to China consumers
Target promotions of Dazzle
TM
in Vietnam and China in 2021
Innovative strategies for our key markets
Scales –2021 Annual Shareholders’ Meeting

31
Food Ingredients - Performance
A considerable step towards our long-run divisional EBITDA target of $25m
•Took advantage of growth in global petfood demand:
Increased pet ownership and adoption rates during COVID-19 pandemic
*
Consumer demand and trends (e.g. humanisation of pets) for petfood continuing to drive growth
•Also benefited from geographical and protein diversification strategies:
12% increase in revenue to $173.7m
71% increase in Underlying EBITDA to $23.1m
4% increase in Meateor volumes sold to 115,739MT
6% increase in Profruitsales volumes to 6.5mlitres of juice concentrate
•New third-party warehousing and processing agreement entered
into in Dodge City, Kansas, to help satisfy increasing demand
Scales –2021 Annual Shareholders’ Meeting
* The American Pet Products Association estimated that 11.38 million U.S. households acquired a new pet during the pandemic, COVID-19 Pulse Study, September 2020
23.0
27.7
29.0
111.0
115.7
20162017201820192020
Petfood Ingredients Sold (MT 000s)

32
Food Ingredients – Future Strategy
Continuing to capitalise on the growing global petfood demand
•Global strategy is to be a key provider of petfood ingredients to a wide range of international brands
•Continued growth of the global petfood industry anticipated:
Market value expected to be US$168.3bby 2029, compared to US$97bin 2019
*
At least two new petfood plants are planned to be built in the USA in 2021
•Ability to pursue opportunities in 2020 limited by travel restrictions, but we continue to actively
review organic and transactional opportunities to expand geographical presence and protein offering:
Investigating the high-growth China market
Expansion of the product range with added-value and functional petfoods
Aiming to be a key provider to a range of international petfood brand owners
Scales –2021 Annual Shareholders’ Meeting
*https://www.prnewswire.com/news-releases/global-pet-food-market-to-show-an-impressive-cagr-of-6-from-2019-to-2029-with-valuation-expected-to-reach-us-168-3-bn-finds-tmr-300999294.html
^ Equity accounted. / ^^ Fully consolidated into Scales’ financial results, with non-controlling interests deducted from NPAT
Food Ingredients Structure
Meateor
International
^^
Petfood ingredient supplier,
Australia & other markets
(100%)
Meateor NZ
^
Petfood ingredient processor
and marketer, New Zealand
(50%)
Shelby
^^
Petfood ingredient procurer,
processor and marketer,
USA
(60%)
Profruit
^
Juice concentrate processor,
New Zealand
(50%)
Meateor Group

33
Logistics - Update
Solid position despite global supply chain disruptions
•Impact of COVID-19 lessened by focus on the essential agribusiness sector:
Underlying EBITDA up 4% to $3.4m
Underlying EBIT up 9% to $3.2m
•Decrease in volumes of both ocean and air freight due to supply chain disruptions and lockdowns:
Ongoing disruptions to supply chains expected throughout 2021
•Continue to seek and consider growth opportunities for the division
Scales –2021 Annual Shareholders’ Meeting

Outlook

35
•Season impacted by inclement weather during key growing period:
Mr Apple Own-grown volumes lower than originally forecast
Significantly lower level of pipfruitexports from the Tasman region, impacting on third party export volumes for Mr Apple and Fern Ridge
•Apple harvest completed, with a total pick of 4.8mTCEs
•Packout rates consistent with recent averages (final export packout rates will only be confirmed at the end of the
season)
•Positive sales and prices to date
•Continuing to experience Covid-related disruptions in markets and shipping
Trading Update – Horticulture
Mr Apple - Gross Harvest and Export Packout
Scales –2021 Annual Shareholders’ Meeting
4.4
4.4
5.1
4.8
5.1
4.8
81%
80%
76%
79%
76%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0.0
1.0
2.0
3.0
4.0
5.0
2016 2017 2018 2019 2020 2021
Total Pick (TCEs millions)Packout (%)

36
Trading Update – Food Ingredients and Logistics
Scales –2021 Annual Shareholders’ Meeting
Food Ingredients
•The pet food market in the USA continues to perform well, with good demand across the division’s businesses
and proteins
•Supply chain disruptions, as well reported in the press, continue to pose challenges and we are working with
Scales Logistics to mitigate issues
Logistics
•Continuation of significant global supply chains disruptions:
High Covid-related import demand
Port congestion
Airfreight margin pressure
•Agriculture output impacted by weather events during
growing season

37
•Ripples from COVID-19 lockdowns impacting 2021 results:
Improvement in supply chains is anticipated for the second half of the year
•The group continues to benefit from its diversified agribusiness strategy
•2021 earnings guidance is reiterated:
Underlying net profit for the group to be between $27.5mand $33.5m
Implying an Underlying EBITDA range of between $46.5mand $53.5m
•Growth:
Organic and external growth opportunities continue to be actively pursued
We look forward to a resumption of international travel to move forward on identified opportunities
As previously advised we have been looking at opportunities in the wine industry and this continues to be a sector of focus
Outlook – Group
Scales –2021 Annual Shareholders’ Meeting
Group

III. Ordinary Resolutions

39
Resolution 1
That the Board is authorised to fix the auditor’s remuneration for the coming year
Scales –2021 Annual Shareholders’ Meeting

40
Resolution 2
Having retired by rotation, that Tim Goodacre be re-elected as a Non Executive
Independent Director
Scales –2021 Annual Shareholders’ Meeting

41
Resolution 3
Having retired by rotation, that Mark Hutton be re-elected as a Non Executive
Independent Director
Scales –2021 Annual Shareholders’ Meeting

IV. Voting and Questions

43
•When the Question function is available, the
Q&A icon will appear at
the top of the app
•To send in a question, simply click in the ‘Ask a
question’ box, type your question
and the press the send arrow
•Your question will be sent immediately for
review
Question Process
Scales –2021 Annual Shareholders’ Meeting
Received

44
Disclaimer
The information in this presentation has been prepared by Scales Corporation Limited with due care and attention. However, neither Scales Corporation Limited nor any of its
directors, employees, shareholders nor any other person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or
negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current
expectations, estimates and assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplated in any projections
and forward-looking statements in this presentation will be realised. Actual results may differ materially from those projected in this presentation. No person is under any obligation
to update this presentation at any time after its release to you or to provide you with further information about Scales Corporation Limited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial
measures used in this presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance charges / (revenue), and taxation expense to net earnings / (loss) from
continuing operations.
•EBIT. We calculate EBIT by adding back (or deducting) finance charges / (revenue), and taxation expense to net earnings / (loss)from continuing operations.
•Underlying EBITDA and EBIT are calculated by adding back (or deducting) certain non-cash NZ IFRS and other adjustments.
•Underlying Net Profit is calculated by adding back or (or deducting) the after-tax effect of certain non-cash NZ IFRS and other adjustments.
A full reconciliation between NZ IFRS and Underlying measures is provided in our Annual Report.
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position or returns,
but that they should not be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP financial measures may not be
comparable to similarly titled amounts reported by other companies.
Forward-looking statements are subject to any material adverse events, significant one-off expenses or other unforeseeable circumstances.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation
constitutes legal, financial, tax or other advice.
Scales –2021 Annual Shareholders’ Meeting