2021 Interim Results announcement

Scales Corporation Limited
Growing your Diversified Agribusiness
Half Year Results
For the Six Months Ended 30 June 2021
25 August 2021

2
Scales Corporation Limited –2021 Half Year Results
1.1H21 Overview
2.COVID-19 and Sustainability Updates
3.Group Results
4.Divisional Performance
5.FY21 Outlook
Appendices:
I.NZ IFRS Reconciliation
II.Disclaimer
Agenda

1
1H21 Overview

4
Scales Corporation Limited –2021 Half Year Results
1H21 Overview
•Exceptional performance during a period with significant challenges:
▪Scales Logistics procured containers, enabling our businesses to successfully export their finished product
▪Extraordinary effort to pick and pack the harvest despite uncertainties surrounding labour availability
▪Financial performance ahead of expectations:
▪Reported NPATof $32.6m(1H20: $27.8m), up 17.5%
▪Underlying* NPATof $33.3m(1H20: $28.9m), up 15.4%
▪Underlying* EBITDA of $54.8m(1H20: $49.4m) up 11.0%
▪On the back of better than expected results we have increased guidance for the full year
▪Note that we have adjusted our definition of “Underlying” so that it now includes the effects of NZ IFRS 16 Leases. This is in line with current market practice. All Underlying result numbers, including
comparatives, are now inclusive of NZ IFRS 16 effects
•Strong in-market prices on lower export volumes within Horticulture:
▪Mr Apple own export volumes of ~3.6m TCEs (2020: 3.9m), affected by inclement weather during key growing period
▪Excellent pricing achieved to date, exceeding increased labour and supply chain costs incurred
•Continued strong performance across Food Ingredients:
▪Benefitted from higher sustained volumes together with changes to product mix and margins
▪Supply chain disruptions presenting challenges at international ports
* Underlying Results exclude some New Zealand International Financial Report Standards (NZ IFRS) non-cash and other adjustments but have been amended to include the effects of NZ IFRS 16 Leases. Management and the Board believe that Underlying Results
more accurately demonstrate the change in operational performance of the Group. Underlying Results are shown before the deduction of share of NPAT for Non-Controlling Interests (Fern Ridge and Shelby) of $4.3m (1H21) vs $2.4m (1H20). A reconciliation of
Underlying to Reported Measures is provided in Appendix I.

2
COVID-19 and Sustainability Updates

6
COVID-19 Update
•Scales notes the following with regards to the current domestic lockdown:
▪Scales’ businesses continue to occupy the privileged position of being ‘essential’
▪Scales had previously updated its pandemic preparedness policies, and was able to smoothly transition to lockdown
▪Picking and packing of the apple harvest had been completed prior to the lockdown announcement
•Minimising risk, together with support for our team members, remain our top priorities:
▪COVID-19 protocols remained in place throughout the apple harvest and packing season; including increased sanitation levels, gloves and masks
•We continue to anticipate disruptions to domestic and international operations including labour availability, global markets and
supply chains due to the ripple effects of COVID-19, as evidenced by the current lockdown in New Zealand
Our people remain our first priority
Scales Corporation Limited –2021 Half Year Results

7
A Sustainable Environment
Environment
•Carbon sequestration project with AUT nearing completion, with pleasing results for existing and long-term apple plantings
•Continued focus on reducing carbon footprint (e.g. fuel use and waste to landfill)
•Collaborated with local councils to create a ‘waste database’
Health and safety
•Participating in a pilot scheme with industry participants, WorkSafe and ACC to develop a
multi-disciplinary approach to injury prevention and reduction during the peak harvest period
•Mental wellbeing strategies being developed to support team members at all levels
Marketplace
•A pilot project is underway between PwC, MPI and Scales, together with Beijing Capital Agribusinessand Joy Wing Mau
Corporation, to develop a prototype digital supply chain to aid MPI build an end-to-end digital supply chain
•Continuing to apply new protocols:
▪Successfully completed a GACC (General Administration of Customs China) audit ensuring continued access to China markets
Together we can do so much
Scales Corporation Limited –2021 Half Year Results

Group Results
3

9
Group Financial Performance
•Underlying NPAT of $33.3m(up 15.4% on 1H20)
•Underlying EBITDA of $54.8m(up 11.0% on 1H20):
Diversified strategy and outstanding team performance contributes to strong interim results
Scales Corporation Limited –2021 Half Year Results
Income Statement
NPATEBITDA
$m1H211H20% chg.1H211H20% chg.
Underlying (excluding NZ IFRS 16)33.629.215.1%49.344.411.2%
NZ IFRS 16 Leases
(0.2)(0.3)5.55.0
Underlying (including NZ IFRS 16)33.328.915.4%54.849.411.0%
NZ IFRS & other adjustments:
Gain on sale of Havelock North Packhouse1.0 - 1.0 -
Transaction costs(1.2)(0.2)(1.2)(0.2)
Other adjustments(0.5)(0.9)(0.2)(0.8)
Reported32.627.817.5%54.548.412.6%
Notes:
1. Prepared on an Underlying basis (including the effects of NZ IFRS 16 Leases). A reconciliation to NZ IFRS is provided in the Appendices
2. %'s are calculated based on non-rounded figures, figures may not sum due to rounding
3. Earnings are shown before the deduction of share of NPAT for Non-Controlling Interests (Fern Ridge and Shelby) of $4.3m (1H21) vs $2.4m (1H20)

10
Divisional Overview
•Horticulture –strong in-market prices on lower export volumes, assisted by diversifiedmarkets and varieties
•Food Ingredients –benefitted from increased demand and changes in product mix and margin
•Logistics –affected by lower export volumes, particularly in stonefruit
Excellent Results in Horticulture and Food Ingredients divisions
Scales Corporation Limited –2021 Half Year Results
Divisional Performance
% chg.
$m1H211H202H20FY201H21 v 1H20
Horticulture38.036.93.940.82.9%
Food Ingredients16.111.012.123.146.3%
Logistics2.73.60.64.2-24.0%
Corporate(2.0)(2.2)(1.8)(4.0)-5.3%
Underlying EBITDA54.849.414.864.111.0%
Underlying NPAT33.328.94.233.015.4%
Notes:
2. %'s are calculated based on non-rounded figures, figures may not sum due to rounding
3. NZ IAS 41 Agriculture requires unsold agricultural produce to be measured at fair value less costs to sell.
This means that the expected profit on unsold fruit is recognised in our interim result, giving rise to
seasonality in profitability
1. Prepared on an Underlying basis (including the effects of NZ IFRS 16 Leases). A reconciliation to NZ IFRS is
provided in the Appendices

11
Balance Sheet
•Net Cash of $38.0m at 30 June 2021 vs $54.8m at 30 June 2020 reflecting:
▪Investment in new coolstore, orchard redevelopment and other projects
▪Increase in working capital, specifically Food Ingredients inventories, due to shipping delays at
international ports
•Agricultural produce represents unsold fruit at 30 June:
▪As at 30 June 2021, 47% of crop sold (30 June 2020: 51%)
▪Lower volume of unsold crop valued at a higher price compared to prior year
▪As of today, ~27% of crop unsold
Scales Corporation Limited –2021 Half Year Results
Balance Sheet
$mJun-21Jun-20
Current assets excluding cash
Trade & other receivables77.086.6
Inventories32.726.4
Agricultural produce74.475.8
Other11.59.5
Current Assets 195.7198.3
Current liabilities excl overdraft, borrowings & dividends declared
Trade & other payables(63.0)(72.5)
Lease liability(10.4)(9.5)
Other(17.8)(20.2)
Current Liabilities(91.2)(102.2)
Net Working Capital104.596.1
Non-current assets
Property, plant & equipment183.0167.4
Other non-current assets82.683.0
Right of use asset78.877.5
Non-Current Assets344.4327.9
Capital Employed448.9424.0
Non-current and other liabilities
Deferred tax liabilities(14.4)(14.4)
Other financial liabilities(2.5)(5.1)
Dividends declared(13.4)(13.4)
Lease liability(71.2)(69.8)
Non-current and other liabilities(101.5)(102.6)
Net cash
Cash less overdraft91.2112.0
Borrowings(53.3)(57.2)
Net cash38.054.8
Total Equity385.4376.2

Divisional Performance
4

13
0
200
400
600
800
1,000
1,200
201220132014201520162017201820192020
RSE workersPermanent staff
Horticulture –Performance and Labour
•Underlying EBITDA $38.0m(1H20: $36.9m):
▪Higher pricing partially offset by lower volumes and increased labour and shipping costs
•Impacted by shortage of skilled RSE workforce:
▪~14% less RSE workers over the key February to April harvest period compared to 2020
▪Workforce supplemented by NZ and Working Holiday Scheme (WHS) workers
▪Extremely grateful to the entire Mr Apple team for their extraordinary effort to pick, pack and
export this year’s harvest
▪RSE workers play a vital role in enabling overall company growth -a 37% increase in RSE
workers 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 RSE workers, their whānau and
their Pacific communities
Strong performance despite shortage of labour
Scales Corporation Limited –2021 Half Year Results
Mr Apple staff numbers

14
Horticulture –Automation
•Mr Apple is part-way through a 10-year investment and automation plan to increase productivity across the business
•Our initial focus is on our post-harvest activities. The first step of this journey was the development of the new WhakatuCoolstore:
▪This bin store is adjacent to our largest packhouse and was opened in time for the current 2021 season. The coolstoreis delivering a number of efficiencies including
reduced power consumption, reducing the double-handling of fruit (lowering fruit damage and labour cost), and reductions in transportation costs and carbon emissions
•The next stage of our plan is to fully automate the Whakatupackhouse –a 3-4 year project that, when completed:
▪Will significantly increase labour productivity
▪Will reduce the number of human touch points as we develop one of the world’s only packhouses to fully-automate fruit handling
▪Leads to possible 24x7 packing, which would enable further consolidation of our packing activities and therefore greater freightand labour efficiency across the network
•On-orchard automation and technology solutions are actively being monitored and considered and will likely follow the packhouse upgrade
project
Improving efficiency and returns through automation
Scales Corporation Limited –2021 Half Year Results
An example of robotic tray-filling machines in operation
The new Whakatucoolstore

15
Horticulture –Volumes
•Forecast Mr Apple total own grown export volumes of 3.6m TCEs (2020: 3.9m TCEs):
▪Exceptional effort made by a smaller Mr Apple team to pick all fruit
▪Export packout to date approximately 73% (2020: 76%). Our technology is able to efficiently grade fruit for export. Non-exportgrade fruit is sold fresh
domestically, converted to juice at Profruit, or sold for further processing
•Continued strong growth in Premium variety volumes:
▪Overall 9% increase in Premium varieties including considerable growth in Dazzle
TM
and Posy
TM
sales
▪Traditional volumes impacted by redevelopment (reducing planted hectares of traditional varieties) and weather
2021 volumes impacted by inclement weather
Scales Corporation Limited –2021 Half Year Results
Mr Apple Own Export Volumes (TCE 000s)
Growth in Premium Volumes (TCE 000s)
741
1,059
1,036
1,454
1,656
1,616
1,901
2,161
2,238
2,361
1,404
1,773
1,716
1,701
1,890
1,929
1,966
1,661
1,678
1,277
2,144
2,833
2,752
3,155
3,546
3,545
3,867
3,822
3,915
3,638
2012201320142015201620172018201920202021F
Premium VarietiesTraditional Varieties
134
214
343
406
457
538
534
509
185
245
245
282
301
253
359
378
401
422
393
585
574
831
866
809
959
1,046
1,049
1,061
147
148
126
199
253
370
741
1,059
1,036
1,454
1,656
1,616
1,901
2,161
2,238
2,361
2012201320142015201620172018201920202021F
NZ QueenPink LadyHigh Colour Fuji and Royal GalaOther

16
Europe
21%
North
America
2%
UK
11%
Asia &
Middle East
66%
Europe
24%
North
America
4%
UK
11%
Asia &
Middle East
62%
Europe
15%
North
America
2%
UK
14%
Asia &
Middle East
69%
Horticulture –Markets and Pricing
•UK market stable, Europe impacted by lower available volumes of Traditional varieties:
▪Pricing above or in line with prior year
▪As a result of a lower anticipated European crop, the sales period for that market is expected to be both stronger and longer
•Continued strength in sales to Asia and Middle East markets
•Pleasing shipments of other products (including kiwifruit and pears) by Fern Ridge Fresh
Geographical and channel diversification continuing to provide benefits
Scales Corporation Limited –2021 Half Year Results
* Actual sales by region will not finally be known until all fruit is sold.
Sales to Asia and Middle East are predominantly in USD, North American sales are in CAD and USD, UK and Europe sales predominantly in their respective currencies.
Sales by Region (TCEs) FY20Sales by Region (TCEs) FY19Sales by Region (TCEs) FY21F*

17
Horticulture -Branding and Market Strategies
•The ongoing focus on investing in the Mr Apple brand continues to pay dividends,
particularly as our business increases the proportion of direct sales to retailers
•Marketing effort and increased in-market branding initiatives, particularly in
China:
▪Increased social media, in-store promotions and exhibitions
▪Extension of sales channels to include e-commerce
▪Packaging innovations
▪Collaboration with partners
•Resulted in retail, e-commerce and omni (multi-channel) sales:
▪Comprising 76% of China / Hong Kong sales in 2020
•Supported by:
▪Our strategic shareholder China Resources Ng Fung Limited
▪In-market presence of Shanghai-based services company Primary Collaboration New Zealand
•Product development and launch innovations continue:
▪Flagship store on TMALL (Alibaba) now operational
▪TMALL to market and sell a range of Mr Apple products directly to China consumers
▪Dazzle
TM
launched in 2020 through high end Chinese retailers such as Hema
Maximising appeal throughout the value chain, to consumers as well as wholesalers and retailers
Scales Corporation Limited –2021 Half Year Results
Sales by Channel –China -2020
Box design for TMALLdelivery
Launch of Dazzle
TM
in China retail
Retail
41%
E-commerce
6%
Omni
29%
Wholesale
24%

18
Mr Apple –Social Media Examples
•Mr Apple has presence on Facebook across SE Asia, and in China is on WeChat, Weibo, Douyin(tiktok) and Little Red Book
•Facebook and Instagram campaigns held May to September in Vietnam, Indonesia and Japan to reach Mr Apple consumers:
▪Vietnam –focus on Dazzle
TM
to drive awareness and purchase and collect first party data
▪Indonesia –partnership with customer PT Indofreshwith store locator, combined with instore promotions
▪Japan –geo-targeted posts close to stores carrying Dazzle
TM
apples
Using social media to actively build our brands with consumers throughout Asia
Scales Corporation Limited –2021 Half Year Results
Facebook lead generation
VietnamIndonesiaJapan
Facebook Dazzle
TM
videos
China
Store traffic / location campaignKey Opinion Leader pictures from Little Red Book

19
Food Ingredients -Performance
•Excellent first half results, Underlying EBITDA of $16.1m(1H20: $11.0m):
▪30% increase in volumes sold compared to 1H20
▪Movement in profitability reflects changes in product mix and margin
▪Year-on-year comparison in profitability is also impacted by therelative contribution of different operations within the division
▪Shelby results supported by one-off US wage subsidy scheme (NZ$0.9m)
•COVID-19 continuing to impact Australasian supply chain:
▪Shelby benefiting from domestic customer base
•Strong domestic sales by Profruit help to offset supply chain difficulties encountered for export sales
•Opportunities to expand Meateor and Shelby products and services continue to be investigated
Strong performance reflecting sustained pet food demand
Scales Corporation Limited –2021 Half Year Results
Meateor Group –Total Volumes Sold (MT 000s)
12.9
16.0
56.1
54.5
70.8
1H171H181H191H201H21

20
Logistics -Performance
•Scales Logistics successfully navigated a domestic shortage of refrigerated containers (reefers) to ensure all of its horticulture
customers were able to ship their 2021 harvest. Scales Logistics’ perishable expertise and strategic value continues to pay dividends
for all of our customers
•Underlying EBITDA of $2.7m (1H20: $3.6m), principally due to lower national agricultural export volumes
•A challenging time for international freight with continued, significant, national and global supply chain disruptions:
▪High import demand
▪Port congestion and container demand
Strategic value far exceeds financial contribution
Scales Corporation Limited –2021 Half Year Results
Scales Logistics Underlying EBITDA ($m)
2.5
2.9
3.4
3.6
2.7
1H171H181H191H201H21

5
FY21 Outlook

22
Full Year Outlook for 2021
•Full year Underlying Net Profit
*
now expected to be between $32.0m and $37.0m. This is inclusive of the effect of NZ IFRS 16
Leases of approximately $0.5m
▪Implies an Underlying EBITDA range of between $65.0m and $72.0m. This is inclusive of the effect of NZ IFRS 16 Leases of approximately $11.0m
•Horticulture:
▪Ongoing disruptions to global markets and logistics anticipated
▪Continued focus on availability and cost of future labour
▪Automation strategy developed, commencing with Whakatu packhouse this year
▪Investigating increased use of technology throughout all areas of the business
•Food Ingredients:
▪Positive full year performance expected
•Despite incurring significant one-off transaction costs in respect of an unsuccessful acquisition, we continue to believe that we
are well positioned to take advantage of future opportunities
•Outlook for FY22 expected to be affected by ongoing ripple effects of COVID-19, particularly with regard to global supply chains
for both availability and cost
Due to a strong 1H21 result Scales has upgraded its FY21 guidance
Scales Corporation Limited –2021 Half Year Results
*
Prior to Non-Controlling Interests.

Appendices

24
Appendix I –NZ IFRS Reconciliation
Scales Corporation Limited –2021 Half Year Results
Reconciliation of Divisional Underlying Profitability to Reported Profitability
$m1H211H201H211H201H211H201H211H201H211H20
Underlying / Reported Revenue253.8253.3127.4136.399.884.143.650.3(17.0)(17.4)
EBITDA Reconciliation
Underlying EBITDA (excluding NZ IFRS 16)49.344.433.032.416.111.02.33.2(2.1)(2.2)
NZ IFRS 16 Leases5.55.05.04.60.00.00.40.40.00.0
Underlying EBITDA (including NZ IFRS 16)54.849.438.036.916.111.02.73.6(2.0)(2.2)
Other adjustments:
Gain on sale of Havelock North Packhouse1.0 - 1.0 - - - - - - -
Change in fair value gain on apple inventory0.4(0.4)0.4(0.4) - - - - - -
Change in gross liability for non-controlling interests(0.1)(0.1) - - (0.1)(0.1) - - - -
Equity settled employee benefits(0.4)(0.3) - - - - - - (0.4)(0.3)
Transaction costs(1.2)(0.2) - - - - - - (1.2)(0.2)
Reported EBITDA54.548.439.536.616.010.92.73.6(3.7)(2.6)
EBIT Reconciliation
Underlying EBIT (excluding NZ IFRS 16)44.038.928.227.715.710.52.22.9(2.1)(2.2)
NZ IFRS 16 Leases1.11.11.01.00.00.00.10.10.00.0
Underlying EBIT (including NZ IFRS 16)45.240.029.328.715.710.52.33.1(2.1)(2.2)
Other adjustments:
Gain on sale of Havelock North Packhouse1.0 - 1.0 - - - - - - -
Change in fair value gain on apple inventory0.4(0.4)0.4(0.4) - - - - - -
Change in gross liability for non-controlling interests(0.1)(0.1) - - (0.1)(0.1) - - - -
Equity settled employee benefits(0.4)(0.3) - - - - - - (0.4)(0.3)
Transaction costs(1.2)(0.2) - - - - - - (1.2)(0.2)
Reported EBIT44.839.030.728.315.510.32.33.1(3.7)(2.7)
NPAT Reconciliation
Underlying NPAT (excluding NZ IFRS 16)33.629.220.319.613.38.71.62.1(1.6)(1.3)
NZ IFRS 16 Leases(0.2)(0.3)(0.2)(0.3)0.0(0.0)(0.0)(0.0)(0.0)(0.0)
Underlying NPAT (including NZ IFRS 16)33.328.920.119.413.38.71.52.1(1.6)(1.3)
Other adjustments:
Gain on sale of Havelock North Packhouse1.0 - 1.0 - - - - - - -
Change in fair value gain on apple inventory0.4(0.4)0.4(0.4) - - - - - -
Change in gross liability for non-controlling interests(0.1)(0.1) - - (0.1)(0.1) - - - -
Equity settled employee benefits(0.4)(0.3) - - - - - - (0.4)(0.3)
Transaction costs(1.2)(0.2) - - - - - - (1.2)(0.2)
Tax effect of other NZ IFRS adjustments(0.3)(0.1)(0.1)0.1(0.2)(0.2) - - - 0.0
Reported NPAT32.627.821.419.112.98.41.52.1(3.3)(1.8)
GroupHorticultureFood IngredientsLogisticsCorporate & Eliminations

25
Appendix II -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.
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 Corporation Limited –2021 Half Year Results

---

Scales Corporation Limited
Condensed Consolidated Interim Financial Statements
for the six months ended 30 June 2021

Scales Corporation Limited
Contents
Directory3
Consolidated statement of comprehensive income4
Consolidated statement of changes in equity6
Consolidated statement of financial position7
Consolidated statement of cash flows8
Notes to the condensed consolidated interim financial statements10
Independent auditor's review report18
2

Scales Corporation Limited
Directory
Board of DirectorsAuditor
Tim Goodacre (Chair)Deloitte Limited
Andrew Borland (Managing Director)Level 4
Nick Harris151 Cambridge Terrace
Mark HuttonChristchurch 8013
Alan Isaac
Lai Po Sing, TomakinBankers
Nadine TunleyANZ Bank New Zealand Limited
Level 3
Audit and Risk Management CommitteeANZ Centre
Alan Isaac (Chair)267 High Street
Nick HarrisChristchurch 8011
Mark Hutton
Coöperatieve Rabobank U.A., New Zealand Branch
Nominations and Remuneration CommitteeLevel 10, Jarden House
Mark Hutton (Chair)21 Queen Street
Tim GoodacreAuckland 1010
Finance and Treasury CommitteeWestpac New Zealand Limited
Mark Hutton (Chair)Level 4
Andrew BorlandThe Terrace
83 Cashel Street
Health & Safety and Sustainability CommitteeChristchurch 8011
Nick Harris (Chair)
Andrew BorlandSolicitors
Nadine TunleyAnthony Harper
Level 9
Registered OfficeAnthony Harper Tower
52 Cashel Street62 Worcester Boulevard
Christchurch 8013Christchurch 8013
New Zealand
Chapman Tripp
Postal Address23 Albert Street
PO Box 1590Auckland 1010
Christchurch 8140
New ZealandShare Registry
Computershare Investor Services Limited
TelephoneLevel 2
+64 3 379 7720159 Hurstmere Road
Takapuna
WebsiteNorth Shore City
www.scalescorporation.co.nzAuckland 0622
3

Scales Corporation Limited
Consolidated statement of comprehensive income for the six months ended 30 June 2021
UnauditedAudited
Six months endedYear ended
30 June 2021 30 June 202031 December
2020
Note$000's$000's$000's
Revenue6253,836253,292470,709
Cost of sales(179,455)(184,305)(366,800)
74,38168,987103,909
Administration and operating expenses(22,988)(21,552)(44,382)
Revaluation of apple trees and buildings--(4,311)
Other income5,4003731,645
Other losses(3,666)(520)(2,345)
Share of profit of entities accounted for using the equity method1,3521,1072,224
EBITDA54,47948,39556,740
Amortisation(174)(333)(584)
Depreciation(5,137)(5,141)(10,294)
Depreciation of right of use asset(4,360)(3,909)(8,301)
EBIT44,80839,01237,561
Finance revenue6621,4782,584
Finance cost(845)(1,088)(1,915)
Finance cost of lease liability(1,482)(1,517)(2,981)
PROFIT BEFORE INCOME TAX EXPENSE FROM CONTINUING OPERATIONS43,14337,88535,249
Income tax expense
(10,515)
(10,112)
(8,668)
PROFIT FOR THE PERIOD32,62827,77326,581
Profit for the period from continuing operations is attributable to:
Equity holders of the Company28,31425,34921,025
Non-controlling Interests4,3142,4245,556
32,62827,77326,581
EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Basic earnings per share (cents):920.118.115.0
Diluted earnings per share (cents):920.118.014.9
The notes to the financial statements on pages 10 to 17 form part of and should be read in conjunction with this statement.
4

Scales Corporation Limited
Consolidated statement of comprehensive income for the six months ended 30 June 2021 (continued)
UnauditedAudited
Six months endedYear ended
30 June 2021 30 June 202031 December
2020
$000's$000's$000's
PROFIT FOR THE PERIOD32,62827,77326,581
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss:
(Loss) gain on cash flow hedges(13,963)
3,39020,861
Income tax relating to cash flow hedges3,910
(949)(5,841)
Share of other comprehensive income of joint ventures(706)
(136)708
Income tax relating to share of other comprehensive income of joint ventures198
38(198)
Foreign exchange gain (loss) on translating foreign operations296
207(784)
(10,265)2,55014,746
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings-
-9,133
Income tax relating to buildings-
-(448)
Revaluation of apple trees-
-(31)
Income tax relating to apple trees-
-9
Remeasurement of net defined benefit liability-
-(440)
Income tax relating to remeasurement of net defined benefit liability-
-67
--8,290
OTHER COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD(10,265)2,55023,036
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD22,36330,32349,617
Total comprehensive income for the period attributable to:
Equity holders of the Company18,04927,83644,374
Non-controlling Interests4,314
2,487
5,243
22,36330,32349,617
The notes to the financial statements on pages 10 to 17 form part of and should be read in conjunction with this statement.
5

Scales Corporation Limited
Consolidated statement of changes in equity for the six months ended 30 June 2021
Share
capitalReserves
Retained
earnings
Attributable to
owners of the
Company
Non-
controlling
interestsTotal
Note$000's$000's$000's$000's$000's$000's
Unaudited
Six months ended 30 June 2021
At 1 January 2021
96,37186,774190,622373,7674,638
378,405
Profit for the year--28,31428,3144,31432,628
Other comprehensive loss for the period-(10,265)-(10,265)-(10,265)
Total comprehensive income for the period-(10,265)28,31418,0494,31422,363
Reclassification of revaluation reserve-
(2,224)2,224-
--
Recognition of share-based payments
-
450
-450-
450
Shares fully vested
2,870(1,251)(295)1,324-
1,324
Dividends7
--(13,413)(13,413)(3,730)
(17,143)
Balance at 30 June 202199,24173,484207,452380,1775,222385,399
Unaudited
Six months ended 30 June 2020
At 1 January 2020
95,27362,511197,230355,0143,989
359,003
Profit for the year--25,34925,3492,42427,773
Other comprehensive income for the period-2,487-2,487632,550
Total comprehensive income for the period-2,48725,34927,8362,48730,323
Reclassification of revaluation reserve
-----
-
Recognition of share-based payments-
268-268-
268
Shares fully vested
1,098(536)(165)397-
397
Dividends7
--(13,358)(13,358)(443)
(13,801)
Balance at 30 June 202096,37164,730209,056370,1576,033376,190
Audited
Year ended 31 December 2020
At 1 January 2020
95,27362,511197,230355,0143,989
359,003
Profit for the year--21,02521,0255,55626,581
Other comprehensive income for the period-23,349-23,349(313)23,036
Total comprehensive income for the period-23,34921,02544,3745,24349,617
Reclassification of revaluation reserve-1,093
(1,093)-
--
Reclassification of pension reserve
-(341)
341
--
-
Recognition of share-based payments-
698-698-
698
Shares fully vested
1,098(536)(165)397-
397
Dividends7
--(26,716)(26,716)(4,594)
(31,310)
Balance at 31 December 202096,37186,774190,622373,7674,638378,405
The notes to the financial statements on pages 10 to 17 form part of and should be read in conjunction with this statement.
6

Scales Corporation Limited
Consolidated statement of financial position as at 30 June 2021
UnauditedAudited
Six months endedYear ended
30 June 202130 June 202031 December
2020
Note$000's$000's$000's
EQUITY
Share capital
99,24196,37196,371
Reserves8
73,48464,73086,774
Retained earnings
207,452209,056190,622
Equity attributable to Scales Corporation Limited shareholders380,177370,157373,767
Equity attributable to Non-controlling Interests5,2226,0334,638
TOTAL EQUITY385,399376,190378,405
CURRENT ASSETS
Cash and bank balances
30,94231,98547,418
Term deposits
60,29680,000104,632
Trade and other receivables
77,04386,58919,452
Other financial assets10
8,1667,10212,688
Agricultural produce
74,42075,84524,022
Inventories
32,69026,41625,805
Prepayments
3,3662,3513,899
286,923310,288237,916
Assets held for sale
--2,550
TOTAL CURRENT ASSETS286,923310,288240,466
NON-CURRENT ASSETS
Property, plant and equipment
182,974167,406181,311
Investments accounted for using the equity method
25,80024,94426,154
Goodwill
42,74745,11141,905
Other financial assets1013,31712,34218,143
Computer software
710575354
Right of use asset
78,84177,50677,877
TOTAL NON-CURRENT ASSETS344,389327,884345,744
TOTAL ASSETS631,312638,172586,210
CURRENT LIABILITIES
Bank overdrafts
--1,384
Trade and other payables
62,96572,49125,117
Dividend declared7
13,41313,35813,359
Borrowings
-967860
Current tax liabilities
12,57212,6561,593
Other financial liabilities105,2367,4944,300
Lease liability
10,4049,52710,053
TOTAL CURRENT LIABILITIES104,590116,49356,666
NON-CURRENT LIABILITIES
Borrowings
53,25256,21252,199
Deferred tax liabilities
14,40714,41325,596
Defined benefit plan net liability
653-632
Other financial liabilities101,8585,1012,522
Lease liability
71,15369,76370,190
TOTAL NON-CURRENT LIABILITIES141,323145,489151,139
TOTAL LIABILITIES245,913261,982207,805
NET ASSETS385,399376,190378,405
The notes to the financial statements on pages 10 to 17 form part of and should be read in conjunction with this statement.
7

Scales Corporation Limited
Consolidated statement of cash flows for the six months ended 30 June 2021
UnauditedAudited
Six months endedYear ended
30 June 202130 June 202031 December
2020
$000's$000's$000's
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers192,221186,555469,559
Dividends received1,0001,0001,509
Interest received1,0872,2544,042
194,308189,809475,110
Cash was disbursed to:
Payments to suppliers and employees(220,583)(206,018)(407,074)
Interest paid(2,327)(2,605)(4,896)
Income tax paid(6,665)(6,074)(9,916)
(229,575)(214,697)(421,886)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES(35,267)(24,888)53,224
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from matured term deposits44,33662,00037,368
Advances repaid278243382
Sale of property, plant and equipment3,535-298
48,14962,24338,048
Cash was applied to:
Purchase of computer software(530)(101)(131)
Purchase of property, plant and equipment(6,653)(6,596)(24,237)
(7,183)(6,697)(24,368)
NET CASH PROVIDED BY INVESTING ACTIVITIES40,96655,54613,680
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Proceeds from seasonal facility borrowings-2,9673,955
-2,9673,955
Cash was applied to:
Repayments of seasonal facility borrowings-(2,000)(3,000)
Repayments of lease liabilities(4,010)(3,490)(7,300)
Dividends paid(13,359)(13,328)(26,685)
Dividends paid to non-controlling interests(3,730)(443)(4,594)
(21,099)(19,261)(41,579)
NET CASH USED IN FINANCING ACTIVITIES(21,099)(16,294)(37,624)
NET (DECREASE) INCREASE IN NET CASH(15,400)14,36429,280
Net foreign exchange difference308177(690)
Cash and cash equivalents at the beginning of the period46,03417,44417,444
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD30,94231,98546,034
Represented by:
Cash and bank balances
30,94231,985
47,418
Bank overdrafts
--
(1,384)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD30,94231,98546,034
The notes to the financial statements on pages 10 to 17 form part of and should be read in conjunction with this statement.
8

Scales Corporation Limited
Consolidated statement of cash flows for the six months ended 30 June 2021 (continued)
UnauditedAudited
Six months endedYear ended
30 June 202130 June 202031 December
2020
Note$000's$000's$000's
NET CASH GENERATED BY OPERATING ACTIVITIES
Reconciliation of profit for the year to net cash generated by operating activities:
Profit for the year32,62827,77326,581
Non-cash items:
(Gain) loss on disposal of property, plant and equipment(1,009)262
(Gain) loss on hedge instruments recycled to profit or loss(3,761)--
Government grants forgiven2(b)(866)--
Amortisation174333584
Depreciation9,4979,05018,595
Revaluation of apple trees and buildings--4,311
Share of equity accounted results(1,352)(1,107)(2,224)
FX option premiums22947(205)
Deferred tax(7,121)(5,940)(203)
Share-based payments450268698
Change in gross liability on put options141145647
Items classified as investing and financing activities:
Dividends received from equity accounted company1,0001,0001,500
Changes in net assets and liabilities:
Trade and other receivables(57,344)(65,996)764
Agricultural produce(50,398)(54,226)(2,403)
Inventories(6,751)628
Prepayments5371,131(426)
Trade and other payables37,70852,6485,960
Current tax10,9719,978(1,045)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES(35,267)(24,888)53,224
For and on behalf of the Board of Directors who authorised the issue of these interim financial statements on 24 August 2021.
Tim Goodacre, ChairAndy Borland, Managing Director
9

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
1. GENERAL INFORMATION
Scales Corporation Limited (the "Company" or "Scales") is a for-profit entity domiciled and registered under the
Companies Act 1993 in New Zealand. It is an FMC reporting entity for the purposes of the Financial Markets Conduct Act
2013 and the Financial Reporting Act 2013. The Group consists of Scales, its subsidiaries and joint ventures. The principal
activities of the Group are to grow apples, provide logistics services, export products, provide insurance services to
companies within the Group and operate storage and processing facilities.
2. COVID-19
On 24 March 2020, the New Zealand Government announced a number of Orders under the Health Act 1956 and the
Epidemic Preparedness Act 2006 to restrict certain activities for the purposes of preventing the outbreak and spread of
COVID-19. The Group's business units were classified as "essential services" and complied with the respective health
requirements within each jurisdiction they operated in.
As at the date of authorisation of these financial statements, the Group was operating in Alert Level 4 in New Zealand
with strict border restrictions remaining in place and contact tracing encouraged. The Group operations outside of New
Zealand continue to be further impacted by the COVID-19 pandemic.
(a) Uncertainties, estimates and judgements
The economic and public health conditions globally have impacted these trading results, and the current uncertainties are
expected to impact the results in the future.
The risks impacted by the uncertainty arising from COVID-19 include credit risk and market risks which impact the
Group's assessment of expected credit losses, carrying value of inventories and the recoverability of non-current
assets and goodwill.
The Directors have assessed the impact of COVID-19 on these judgements and estimates and concluded that no significant
changes to the carrying values of assets or liabilities are currently necessary.
(b) Government grants
Government support was received in the United States of America by way of government loans during 2020.
These loans may be forgiven if the eligibility criteria are met. This criteria was met during the first half of 2021 and
therefore $866,000 has been recognised as other income in the consolidated statement of comprehensive income.
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grants will be received. Government grants are recognised in profit or loss on a systematic
basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to
compensate.
3. BASIS OF PREPARATION
These unaudited condensed consolidated interim financial statements have been prepared in accordance with Generally
Accepted Accounting Practice (“GAAP”). They comply with the New Zealand Equivalent to International Accounting
Standard 34 (NZ IAS 34)Interim Financial Reporting and International Accounting Standard 34 (IAS 34)Interim
Financial Reporting, as applicable for profit orientated entities. The significant accounting policies applied by the Group
during the period have been applied consistently to all periods presented in these condensed consolidated interim
financial statements. These financial statements should be read in conjunction with the financial statements and related
notes included in the Company’s Annual Report for the year ended 31 December 2020.
The information is presented in thousands of New Zealand dollars unless otherwise stated.
10

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
4. SEGMENT INFORMATION
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable
basis. No single external customer’s revenue accounts for 10% or more of the Group’s revenue. All non-current assets are
located in New Zealand and the United States of America.
The Group's operations comprise the following operating segments:
Horticulture: orchards, fruit packing and marketing. Mr Apple New Zealand Limited, New Zealand Apple Limited,
Fern Ridge Produce Limited and Longview Group Holdings Limited.
Food Ingredients: processing and marketing of food ingredients such as pet food ingredients and juice
concentrate. Meateor Foods Limited, Meateor Foods Australia Pty Limited, Meateor Group Limited, Meateor US LLC,
Shelby JV LLC Group (Shelby Cold Storage Inc, Shelby Exports Inc, Shelby Foods Inc, Shelby JV LLC, Shelby Properties LLC,
Shelby Trucking Corp), Meateor GP Limited, Meateor Pet Foods Limited Partnership and Profruit (2006) Limited.
Logistics: logistics services. Scales Logistics Limited and Scales Logistics Australia Pty Ltd.
Other: Scales Corporation Limited, Geo. H. Scales Limited, Scales Employees Limited, Scales Holdings Limited
and Selacs Insurance Limited.
Horticulture
Food
IngredientsLogisticsOtherEliminationsTotal
$000's$000's$000's$000's$000's$000's
Unaudited
Six months ended 30 June 2021
Total segment revenue127,37599,82943,6221,347(18,337)253,836
Inter-segment revenue--(16,985)(1,352)18,337-
Revenue from external customers127,37599,82926,637(5)-253,836
Segment profit (loss) before income tax29,36315,5142,761(4,495)43,143
Segment assets422,637106,46120,73881,476-631,312
Segment liabilities163,32022,19211,81748,584-245,913
Unaudited
Six months ended 30 June 2020
Total segment revenue136,25384,12950,3441,440(18,874)253,292
Inter-segment revenue--(17,630)(1,244)18,874-
Revenue from external customers136,25384,12932,714196-253,292
Segment profit (loss) before income tax26,97110,3003,207(2,593)-37,885
Segment assets423,302107,34522,88584,640-638,172
Segment liabilities174,54314,55413,89058,995-261,982
Audited
Year ended 31 December 2020
Total segment revenue245,984173,69477,9173,784(30,670)470,709
Inter-segment revenue--(28,082)(2,588)30,670-
Revenue from external customers245,984173,69449,8351,196-470,709
Segment profit (loss) before income tax15,97620,7153,074(4,516)-35,249
Segment assets329,055103,79317,867135,495-586,210
Segment liabilities122,83819,08211,87054,015-207,805
11

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
5. SEASONALITY OF BUSINESS
All business segments are subject to seasonal fluctuation. The apple crop has been picked and packed and the
export programme is well under way as at 30 June. Higher volumes are processed through the pet food ingredients
plants in the first half of the year due to the seasonal nature of the meat industry and there is greater utilisation of
logistics services over the first half of the year as seasonal products are shipped to export markets.
At 30 June the harvested crop held in inventory is valued at fair value less estimated costs to sell. At 31 December the
unharvested crop is valued at fair value less estimated costs to sell. Both the harvested crop at 30 June and the
unharvested crop at 31 December are included in agricultural produce.
6. REVENUE
UnauditedAudited
Six months endedYear ended
30 June 2021 30 June 202031 December
2020
$000's$000's$000's
By nature:
Revenue from the sale of goods
205,468213,551402,194
Revenue from the rendering of services
37,39542,21764,357
Fees and commission
(5)6259
Net foreign exchange (loss) gain
8,303(5,760)(730)
Rental revenue
2,6753,2224,829
253,836253,292470,709
By segment and type:
Horticulture - sale of agricultural produce116,242124,854229,033
Horticulture - agricultural produce related services8,4638,18212,133
Horticulture - other2,6703,2174,818
Food ingredients - sale of pet food ingredients97,35382,704171,144
Food ingredients - other2,4761,4252,550
Logistics services26,63732,71449,835
Other(5)1961,196
253,836253,292470,709
7. DIVIDENDS
During the six months ended 30 June 2021 the Directors paid an interim dividend of 9.5 cents per share and resolved to pay a
final dividend of 9.5 cents per share in respect of the year ended 31 December 2020. This final dividend was paid on 9 July 2021.
During the six months ended 30 June 2020 the Directors paid an interim dividend of 9.5 cents per share and resolved to pay a
final dividend of 9.5 cents per share in respect of the year ended 31 December 2019. This final dividend was paid on 10 July 2020.
12

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
8. RESERVES
Revaluation
Cash flow
hedge
Share of
joint
ventures
Equity-
settled
employee
benefits
Foreign
exchange
translation
Pension plan
reserveTotal reserves
$000's$000's$000's$000's$000's$000's$000's
Unaudited
Six months ended 30 June 2021
At 1 January 2021
65,625 19,9476611,802(860)(401)
86,774
Other comprehensive income (loss)-(10,053)(508)-296
-
(10,265)
Transfer to retained earnings
(2,224)-----
(2,224)
Recognition of share-based payments
---450--
450
Shares fully vested
---(1,251)--
(1,251)
Balance at 30 June 202163,4019,8941531,001(564)(401)73,484
Unaudited
Six months ended 30 June 2020
At 1 January 2020
55,8694,9271511,640(76)-
62,511
Other comprehensive income (loss)-2,378(98)-207
-
2,487
Transfer to retained earnings
------
-
Recognition of share-based payments
---268--
268
Shares fully vested
---(536)--
(536)
Balance at 30 June 202055,8697,305531,372131-64,730
Audited
Year ended 31 December 2020
At 1 January 2020
55,8694,9271511,640(76)-
62,511
Other comprehensive income (loss)8,66315,020510-(784)
(60)
23,349
Transfer to retained earnings
1,093----(341)
752
Recognition of share-based payments
---698--
698
Shares fully vested
---(536)--
(536)
Balance at 31 December 202065,62519,9476611,802(860)(401)86,774
13

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
9. EARNINGS PER SHARE
UnauditedAudited
Six months endedYear ended
30 June 2021 30 June 202031 December
2020
Profit attributable to equity holders of the Company ($000's):28,31425,34921,025
Weighted average number of shares:
Ordinary shares140,664,105140,292,949140,402,514
Effect of dilutive ordinary shares (non-vested Senior Executive Share Scheme)360,608206,808467,735
Weighted average number of ordinary shares for diluted earnings per share141,024,713140,499,757140,870,249
Earnings per share (cents):
Basic20.118.115.0
Diluted20.118.014.9
14

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
10. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES
UnauditedAudited
Six months endedYear ended
30 June 2021 30 June 202031 December
2020
$000's$000's$000's
Current financial assets at fair value:
Foreign currency derivative instruments
8,1667,10212,688
8,1667,10212,688
Non-current financial assets:
At fair value:
Foreign currency derivative instruments
11,68911,66417,572
Shares in unlisted companies
184221184
At amortised cost:
Employee loans
1,444457387
13,31712,34218,143
Current financial liabilities at fair value:
Foreign currency derivative instruments
4813,11435
Interest rate swap contracts and forward rate agreements
396726618
Put option
4,3593,6543,647
5,2367,4944,300
Non-current financial liabilities at fair value:
Foreign currency derivative instruments
4232,846366
Interest rate swap contracts and forward rate agreements
298842554
Put option
1,1371,4131,602
1,8585,1012,522
Foreign currency derivative instruments
The Group is exposed to currency risk as a result of normal trading transactions denominated in foreign currencies. The Group
uses foreign currency derivative financial instruments to manage its currency risk. The fair value of foreign currency
derivative financial instruments at the reporting date is determined on a discounted cash flow basis whereby future cash
flows are estimated based on forward exchange rates and contract forward rates, discounted at a rate that reflects the credit
risk of various counterparties. The Group’s forward foreign exchange contracts and foreign exchange options are classified as
Level 2 in the fair value hierarchy.
These foreign currency instruments are designated as cash flow hedges in order to reduce the Group’s cash flow exposure
resulting from movements in foreign currency exchange rates on anticipated future transactions. It is anticipated that the
sales will take place during the 2021 to 2025 financial years at which stage the amount deferred in equity will be released into
profit or loss.
15

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
10. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES (CONTINUED)
Interest rate swap contracts and forward rate agreements
The Group is exposed to interest rate risk as it borrows funds at floating interest rates. Management monitors the level of
interest rates on an ongoing basis and uses interest rate swaps and forward rate agreements to manage interest rate risk.
Under interest rate swap contracts and forward rate agreements, the Group agrees to exchange the difference between fixed
and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts, some of which may
commence in future reporting years, enable the Group to mitigate the risk of changing interest rates on the cash flow
exposures on the issued floating rate debt. The fair value of these contracts at the reporting date is determined by
discounting the future cash flows using the forward interest rate curves at reporting date and the credit risk inherent in the
contracts. The average contracted fixed interest rate is based on the notional principal amount at balance date. The Group’s
interest rate swap contracts and forward rate agreements are classified as Level 2 in the fair value hierarchy.
These interest rate swap contracts and forward rate agreements, exchanging floating rate interest amounts for fixed rate
interest amounts, are designated as cash flow hedges in order to reduce the Group’s cash flow exposure resulting from
floating interest rates on borrowings. The interest rate swap and forward rate agreement payments, and the interest
payments on the loans occur simultaneously, and the amount deferred in equity is recognised in profit or loss over the
period that the floating rate interest payments on debt impact profit or loss.
11. RELATED PARTY DISCLOSURES
(a) Transactions with related parties
Certain Directors or senior management have relevant interests in companies with which Scales has transactions
in the normal course of business. A number of Scales directors are also non-executive directors of other
companies. Any transactions undertaken with these entities have been entered into in the ordinary course of business
on a third party arm’s-length basis.
UnauditedAudited
Six months endedYear ended
30 June 2021 30 June 202031 December
2020
$000's$000's$000's
(b) Key management personnel remuneration
The compensation of the directors and executives, being the key management personnel
of the Group, is as follows:
Short-term employee benefits and directors' fees1,7511,5552,784
Share-based payments21387367
Post-employment benefits515195
2,0151,6933,246
(c) Transactions with equity accounted entities
Revenue from sale of goods7251,0581,189
Revenue from services1,9812,2773,910
Materials and consumables purchased-(886)(1,219)
Dividends received1,0005001,500
Trade receivables at balance date336399257
Dividends receivable-500-
16

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2021
12. CAPITAL COMMITMENTS
UnauditedAudited
Six months endedYear ended
30 June 2021 30 June 202031 December
2020
$000's$000's$000's
Commitments entered into in respect of apple trees as at balance date2,5661,013289
Commitments entered into in respect of coolstore construction as at balance date-10,305-
2,56611,318289
13. CONTINGENT LIABILITY
In December 2018 an insurance claim was notified to Selacs Insurance Limited, a wholly owned subsidiary of
Scales Holdings Limited, which in turn is a wholly owned subsidiary of Scales Corporation Limited.
The claim arises as a consequence of the collapse of the roof of a leased coldstore located in Hastings, Hawke's Bay.
Two of the claim elements have been settled. Payments related to these elements have been recorded as claim expense
and reinsurance income - included respectively in other expenses and other income.
The remaining element of the claim continues to be investigated and has not yet been accepted as a claim.
The risk remains fully reinsured, and in the event that all elements are accepted there will be no impact on net income or
net assets of the Group.
14. EVENTS OCCURRING AFTER BALANCE DATE
There were no events occurring subsequent to balance date which require adjustment to, or disclosure, in the
financial statements.
17

Independent Auditor’s Review Report

To the Shareholders of Scales Corporation Limited

Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial statements’) of
Scales Corporation Limited (‘the Company’) and its subsidiaries (‘the Group’), which comprise the statement of
financial position as at 30 June 2021, and the statement of comprehensive income, statement of changes in
equity and statement of cash flows for the six months ended on that date, and a summary of significant
accounting policies and other explanatory information on pages 4 to 17.

Based on our review, nothing has come to our attention that causes us to believe that the interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at
30 June 2021 and its financial performance and cash flows for the six months ended on that date in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting.

Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed
by the Independent Auditor of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in
the Auditor’s Responsibilities for the Review of the Interim Financial Statements section of our report.

We are independent of the Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.

Other than in our capacity as auditor, we have no relationship with or interests in Scales Corporation Limited
and its subsidiaries (‘the Group’), except that partners and employees of our firm deal with the Group on
normal terms within the ordinary course of trading activities of the business of the Group.

Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Company for the preparation and fair presentation of the
interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting and for such internal control as the directors determine is necessary to enable the
preparation and fair presentation of the interim financial statements that are free from material
misstatement, whether due to fraud or error.

Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE
2410 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe
that the interim financial statements, taken as a whole, are not prepared, in all material respects, in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting.

A review of the interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. The
procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand) and consequently do not enable us to
obtain assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on the
interim financial statements.

Restriction on use
This report is made solely to the company’s shareholders, as a body. Our review has been undertaken so that
we might state to the company’s shareholders those matters we are required to state to them in a review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company’s shareholders as a body, for our engagement, for this report,
or for the conclusions we have formed.





Nicole Dring, Partner
for Deloitte Limited
Christchurch, New Zealand
24 August 2021

This review report relates to the unaudited interim financial statements of Scales Corporation Limited and its subsidiaries (‘the
Group’) for the six months ended 30 June 2021 included on the Groups website. The Group’s Board of Directors is responsible for the
maintenance and integrity of the Groups website. We have not been engaged to report on the integrity of the Groups website. We
accept no responsibility for any changes that may have occurred to the unaudited interim financial statements since they were
initially presented on the website. The review report refers only to the unaudited interim financial statements named above. It does
not provide an opinion on any other information which may have been hyperlinked to/from these unaudited interim financial
statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should
refer to the published hard copy of the unaudited interim financial statements and related review report dated 24 August 2021 to
confirm the information included in the unaudited interim financial statements presented on this website. Legislation in New Zealand
governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

---

Results announcement
(for Equity Security issuer)


Results for announcement to the market
Name of issuer Scales Corporation Limited
Reporting Period 6 months to 30 June 2021
Previous Reporting Period 6 months to 30 June 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$253,836 0%
Total Revenue $253,836 0%
Net profit/(loss) from
continuing operations
$28,314 12%
Total net profit/(loss) $28,314 12%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.40 $2.33
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the attached reports for commentary and
unaudited condensed interim financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Steve Kennelly
Contact person for this
announcement
Steve Kennelly
Contact phone number +64 3 3712263
Contact email address steve.kennelly@scalescorporation.co.nz
Date of release through MAP

25/08/2021

Unaudited financial statements accompany this announcement.

---

Scales Corporation Limited
Head Office: 52 Cashel Street | Christchurch 8013 | New Zealand
Postal: PO Box 1590 | Christchurch 8140 | New Zealand
Phone: +64 3 379 7720
scalescorporation.co.nz




NZX & Media Release

25 August 2021

SCALES CORPORATION DELIVERS EXCEPTIONAL PERFORMANCE DURING A PERIOD WITH
SIGNIFICANT CHALLENGES

Highlights – 6 months to 30 June 2021 (1H21)

• Underlying
1
NPAT
2
of $33.3 million (1H20: $28.9 million), up 15.4%
• Underlying EBITDA
3
of $54.8 million (1H20: $49.4 million), up 11.0%
• Mr Apple own export volumes of ~3.6 million TCEs
4

• Strong performance from Food Ingredients reflecting sustained pet food demand
• Sufficient containers procured by Scales Logistics to allow businesses to successfully export
their finished product

Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its 1H21 results.
Reported NPAT for the Group was $32.6 million (1H20: $27.8 million), an increase of 17.5%.

Scales Corporation Chair Tim Goodacre noted: “Despite the challenges experienced by each of our
divisions, our businesses have delivered an exceptional performance both financially and
operationally.”

“We continue to benefit from our diversified agribusiness approach and from the strategic benefit that
Scales Logistics brings to the Group. The result is also testament to the outstanding performance of
our team and the strong culture within the divisions.”

Divisions

The Horticulture division delivered an Underlying EBITDA of $38.0 million (1H20: $36.9 million), up
2.9%. Mr Apple total own grown export volumes are forecast to be 3.6 million TCEs (1H20:
3.9 million TCEs). Managing Director Andy Borland commented: “The Horticulture division delivered

1
We have adjusted our definition of “Underlying” so that it now includes the effects of NZ IFRS 16 Leases. This is in line with
current market practice. All Underlying result numbers, including comparatives, are now inclusive of NZ IFRS 16 effects
2
Net Profit After Tax
3
Earnings Before Interest, Tax, Depreciation and Amortisation
4
Tray Carton Equivalents

a very strong performance despite being impacted by a shortage of skilled RSE workers together with
ongoing disruptions in global markets and supply chains. Volumes were affected by inclement
weather in the key growing season. However, higher pricing offset these lower volumes as well as
the increased labour and shipping costs that were incurred.”

“We are cognisant of the need to focus on increasing labour cost and availability issues and,
accordingly, are pleased to note that we have commenced a 10-year strategy to improve efficiency
and returns through automation. The first step of this journey was the development of our new
Whakatu coolstore, which has already delivered a number of efficiencies this year.”

The Food Ingredients division delivered another excellent first half result with Underlying EBITDA of
$16.1 million (1H20: $11.0 million). Mr Borland noted: “This strong performance reflects the sustained
global demand for petfood, with the division experiencing a 30% increase in volumes sold compared
to 1H20. Whilst COVID-19 continued to impact the Australasian supply chain, Shelby benefitted from
its domestic customer base, supporting our geographical diversification strategy.”

Logistics delivered an Underlying EBITDA of $2.7 million (1H20: $3.6 million). Mr Borland said “The
strategic value of Scales Logistics is significant. During a period of global supply chain issues,
together with a domestic shortage of refrigerated containers, Scales Logistics ensured all its
horticulture customers were able to ship their 2021 harvests. This expertise provides a significant
strategic advantage to the Group.”

Outlook

Mr Goodacre noted “Due to a strong 1H21 result, Scales has upgraded its full year guidance.
Underlying Net Profit is now expected to be between $32.0 million and $37.0 million
5
, implying an
Underlying EBITDA of between $65.0 million and $72.0 million
6
.

We continue to anticipate disruptions to domestic and international operations including labour
availability, global markets and supply chains due to the ripple effects of COVID-19. This can be
evidenced by the current lockdown in New Zealand. However, we believe our diversified focus will go
some way to mitigate these issues. We are also aware that our ability to operate during lockdowns is
not possible without our team, and their health and safety will continue to be our foremost priority”

Mr Goodacre again expressed his thanks and gratitude on behalf of his fellow Directors and
Shareholders to all Scales’ employees for their ongoing exceptional commitment and dedication
which is delivering this current strong financial performance.


5
Before the deduction of Non-Controlling Interests. This is inclusive of the effect of NZ IFRS 16 Leases of approximately $0.5
million
6
This is inclusive of the effect of NZ IFRS 16 Leases of approximately $11.0 million

About Scales Corporation
Scales Corporation is a diversified agribusiness portfolio. It comprises three operating divisions:
Horticulture, Food Ingredients and Logistics. The company’s diverse spread of activities gives Scales
broad exposure to the 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
USA. Find out more at www.scalescorporation.co.nz.

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