2022 Interim Results 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



global nutrition

NZX & Media Release

24 August 2022

DIVERSIFICATION PAYS DIVIDENDS FOR SCALES CORPORATION

Highlights – 6 months to 30 June 2022 (1H22)

• Underlying
1
NPAT
2
Attributable to Shareholders of $25.6 million (1H21: $29.0 million), down
11.7%
• Reported NPAT of $35.1 million (1H21: $32.6 million), up 7.5%
• Outstanding performance in petfood ingredients businesses
• This, together with the success of our divisional strategy and the growth opportunities that have
been identified, has led to a renaming of the Food Ingredients division to Global Proteins
• Logistics continuing to prove strategically important, providing vital services and solutions for both
internal and external customers

Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its 1H22 results
where an outstanding performance by its Global Proteins division and steady earnings from its
Logistics division were impacted by lower Horticulture results.

Scales Corporation Chair Tim Goodacre noted: “Our strategic planning and diversification has
delivered a resilient 6-month performance for Scales Group. In a very challenging year for
Horticulture, the Group has benefited from continued growth in Global Proteins and the ongoing
strategic support from Logistics.”

“As ever, the result is reflective of the outstanding leadership and performance of our teams and the
strong work ethic within each of our businesses.”


1
Underlying results exclude some New Zealand International Financial Report Standards (NZ IFRS) non-cash and other
adjustments
2
Net Profit After Tax

Divisions

Our Global Proteins division has once again grown significantly, with Underlying EBITDA
3
of
$30.4 million (1H21: $16.1 million), an increase of 88.6%. Managing Director Andy Borland
commented: “This is a very exciting time for the Global Proteins division. Its sustained growth has
reaffirmed our belief in its global potential, particularly with regard to proteins, and there are a
promising number of growth opportunities that are presenting themselves.”

“The division’s outstanding 6-month performance continues to be driven by the ongoing global
demand for petfood, with a 13% increase in volumes sold compared to 1H21. Changes in product
mix and margins have also contributed to the growth.”

The Horticulture division encountered significant headwinds. Its Underlying EBITDA of $24.0 million
was down on the prior period (1H21: $38.0 million) with strong in-market prices more than offset by
reduced volumes and increased costs. Mr Apple’s total own-grown export volumes are forecast to be
3.3 million TCEs
4
(2021: 3.6 million TCEs).

Mr Borland noted: “This has been a very challenging season for Horticulture. There has been
considerable disruption in a number of aspects of the business, including in weather, labour, logistics
and international markets. Despite the outstanding job that Mr Apple’s team has done, the combined
effect of these disruptions has negatively impacted the 1H22 result.”

“We are continuing to give attention to the issues of increasing labour costs and difficulties in labour
availability and our packhouse automation project, which partially addresses these issues, is
progressing well.”

Logistics continued to prove its strategic value and delivered a strong Underlying EBITDA of $3.6
million (1H21: $2.7 million). Mr Borland said “The skill and expertise of the Logistics team meant vital
services and solutions were provided to both internal and external customers. We believe there is an
opportunity to expand this offering and expertise to global markets in conjunction with the growth in
the Global Proteins division.”

Full Year 2022 Outlook

Directors advise that Underlying Net Profit Attributable to Shareholders is now expected to be at the
upper end of the previously advised range of $23.5 million to $28.5 million. Due to the change in
earnings mix, the implied Underlying Net Profit range has increased to between $35 million and $43
million and the Underlying EBITDA range has increased to between $65 million and $75 million.


3
Earnings Before Interest, Tax, Depreciation and Amortisation
4
Tray Carton Equivalents

In providing this updated guidance for 2022, Directors note:
• Global Proteins’ earnings for 2H22 are expected to be similar to 2H21
• Earnings from the Horticulture division remain subject to the success of the Mid-Autumn Festival
sales in China and a stronger finish to sales in the European market than experienced in 2021
• Mr Apple has a higher level of fruit that is unsold compared to last year
• The challenges in global logistics are expected to continue through to at least 2023

Scales continues to investigate an increasing number of, predominantly offshore, opportunities to
grow the Global Proteins division.

On behalf of his fellow Directors and Shareholders, Mr Goodacre gave his thanks to all Scales’
employees for their continued loyalty and enthusiasm, which enabled the delivery of the solid financial
and operational performance.

About Scales Corporation
Scales Corporation is a diversified agribusiness portfolio. It comprises three operating divisions:
Global Proteins, Horticulture 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

---

1
Scales Corporation Limited –2022 Half Year Results
SCALES CORPORATION LIMITED
Bringing Nutrition to the World
24 August 2022
Half Year Results
For the Six Months Ended 30 June 2022
global nutrition

2
Scales Corporation Limited –2022 Half Year Results
global nutrition
1.1H22Overview
2.Global Proteins
3.Sustainability
4.Group Results
5.Divisional Performance
6.FY22Outlook
Appendices:
I.NZ IFRS Reconciliation
II.Disclaimer

1. 1H22Overview

4
Scales Corporation Limited –2022 Half Year Results
global nutrition
✓Resilient Group performance:
✓Outstanding Global Proteins performance and steady Logistics earnings offset by lower Horticulture results
✓Financial results in line with expectations:
✓Underlying* NPATAttributable to Shareholders of $25.6m(1H21: $29.0m), down 11.7%
✓Reported NPAT of $35.1m (1H21: $32.6m), up 7.5%
✓Directors advise that Underlying Net Profit Attributable to Shareholders is now expected to be at the upper end of the previously advised range of
$23.5mto $28.5mdue to expectations that 2H22will be marginally above 2H21
✓An exceptionally strong first half from Global Proteins, attributed to increased volumes sold together with changes in product mix and margins
✓Strong in-market prices to date more than offset by reduced volumes and increased costs in Horticulture
* Underlying Results exclude some New Zealand International Financial Report Standards (NZ IFRS) non-cash and other adjustments.Management and the Board believe that Underlying Results more accurately demonstrate the change in operational performance of
the Group. Underlying NPAT and Underlying EBITDA are shown before the deduction of share of Non-Controlling Interests (Fern Ridge and Shelby). Note that our definition of “Underlying” includes the effects of NZ IFRS 16 Leases in line with current market practice.
All Underlying result numbers, including comparatives, are now inclusive of NZ IFRS 16 effects. A reconciliation of Underlying to Reported Measures is provided in Appendix I.
✓Logistics continuing to prove strategically important, providing vital services and solutions for both internal and external customers
SustainedgrowthinourFoodIngredientsdivisionhasreaffirmedourbeliefinitsglobalpotential,particularlywithregardstoproteins.Thesuccessofourstrategy,
combinedwiththeopportunitiesthatarepresentingthemselves,hasledtoarenamingofthedivisiontoGlobalProteins.Ourstrategyforgrowthofthedivisionis
outlinedonslides6to11

2. Global Proteins

6
Scales Corporation Limited –2022 Half Year Results
global nutrition
We are actively progressing our strategy objectives
•We firmly believe in the potential of the food ingredients opportunity. Given both the
recent results of the division, and its global potential, we have changed the name of
the division to better reflect its focus
•The previously outlined strategy is delivering results:
✓Divisional 5-year EBITDA target of $25mset in December 2018 has been exceeded
✓Creating businesses dedicated to providing key protein ingredients
✓Expanding reach of supply and range of proteins
✓Partnering to further develop the supply network
✓Seeking to provide additional products and services
•Scales’ value proposition and competitive advantage, coupled with the growing
global protein demand, makes us confident about the future potential of the division
Petfood Ingredients Sold (MT 000s)
Underlying EBITDA ($m)

7
Scales Corporation Limited –2022 Half Year Results
global nutrition
•There is a correlation in the growth in petfood and human consumption protein demand
due to their related drivers:
◦Estimated global population of 8.6 billion by 2030, with most of the growth from developing /
emerging countries
◦The middle class could reach 4.9 billion people by 2030, a 172% increase from 2009
◦7 out of 10 countries with the highest GDP growth are in Asia
◦Growing preference for pet ownership. Currently 59% of Asian households have a pet,
compared to 70% of USA households
◦‘Humanisation of pets’ driving preference for quality, sustainable and ethical products
◦The mismatch between protein supply and demand is anticipated to grow
•Demographic and social changes will drive a shift in our food systems
•Scales is seeking to position itself to benefit from the anticipated growth in protein
demand for by-products for pet consumption and other edible applications
Sources: https://www.pwc.co.nz/pdfs/2019pdfs/global-megatrends-and-impacts-on-the-food-value-chain.pdf, United Nations, MPI, OECD, FAO
503
512
521
532
538
544
550
554
561
566
572
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
-
100
200
300
400
500
600
700
20202021202220232024202520262027202820292030
FishPoultryPigmeat
Beef & veal SheepmeatPetfood ($)
Global Human Meat Consumption (MT) vs
Global Petfood Consumption ($)
Global annual human meat consumption (MT)
Global
pet
food
consumption
value
(USD, billions)
Pork
Lamb

8
Scales Corporation Limited –2022 Half Year Results
global nutrition
There is a strong relationship between petfood and edible protein supply chains
Global Supply
Transport to abattoirs
Processed into various primary cuts
Core focus -primary meat cuts
marketed and sold by abattoir
3
rd
parties use material
for a range of products
Pet food processing –MDM,
slurries and offal
Extraction of key minerals and
compounds
Edible processing –sold as
protein ingredients
Further processed with additives to
form retail ready petfood
Further processed to form nutraceutical
and pharmaceutical grade products
Protein ingredients are used in multiple
food products
Global supply chain
Due to small volumes,
by-products (fats, trimmings,
bones and offal) are collected by
3
rd
parties, or sent to landfill
•Scales’ strength in global proteins lies in its supplier and customer relationships coupled with its logistics network, and areputation for quality
products. Scales will look to leverage this expertise for complementary expansion
Scales’ current supply chain

9
Scales Corporation Limited –2022 Half Year Results
global nutrition
Our value proposition is our wide range of quality ingredients and end-to-end supply chain excellence
•‘One stop shop’ for customers and suppliers
•Global supply relationships
•Specialised processing to turn by-products
into higher value ingredients
•End-to-end logistics provider
We source and
supply premium
protein ingredients
and deliver on time,
in the desired form,
for our global
customers
By-product raw material
supply from abattoirs is
fragmented. To access
desired volumes requires
many relationships across
multiple countries
Over 500 ingredients
involved in pet food
manufacturing –
procurement and inbound
supply chains are complex
Fragmented supply chains
are more exposed to
disruptions as highlighted
by the recent global events
Current and growing
mismatch between protein
supply and demand in
western and developing
countries

10
Scales Corporation Limited –2022 Half Year Results
global nutrition
The critical factors in becoming a global strategic partner to our customers and suppliers are:
Expand
species
offering
Add value
though
innovation
Expand
logistics
globally
Secure global
supply &
access new
markets
Scales’ Competitive
Advantage
Sourcing globally improves
supply continuity for our
customers, and accessing
new markets accelerates our
volume growth
Having a global logistics network
supporting our processing
facilities will increase the
reliability of our end-to-end
service and improve our brand
Simplify the procurement
process for our customers
as many are wanting to
consolidate supplier
accounts
Expand our activities within the value
chain to lower the cost of production
for our customers –through further
processing in an efficient manner and
at scale

11
Scales Corporation Limited –2022 Half Year Results
global nutrition
Objective
•We will enter into partnerships, joint ventures and alliances to further develop our supply network, either working alongsideexisting operations
that are complementary to our own or with protein suppliers to achieve access to additional protein sources
•We recognise that each market presents unique opportunities thus our partnership model will be adaptable by region
Actions:
•We are actively investigating options to enhance our supply of protein across existing and new markets
Objective
•We intend to extend our range of proteins offered
•Leverage our existing supplier and customer relationships to expand into new species
Actions:
•We continue to discuss options to expand our species offering
Objective
•Look to provide additional services to enable our customers to remain nimble, reduce fixed capital costs and enable them to focus on the
range and mix of products offered
•Closely monitor trends in the pet food market to lead development of innovative new products to meet the needs created by those trends
Actions:
•Through disciplined research we continue to look for ways to be innovative and enhance the value we add for our customers
Objective
•As we expand, look for options to improve our freight, logistics, and storage solutions
Actions:
•We have increased our staff presence in key growth markets to explore new options to enhance our logistics service
Secure global supply and
access new markets
Expand species
offering
Add value through
innovation
Expand logistics
globally

3. Sustainability

13
Scales Corporation Limited –2022 Half Year Results
global nutrition
Continuous improvement
2022 is about re-focusing on the key material issues
•We are currently undertaking scenario analysis to better understand our future physical and
transitional risks and opportunities
•The aim is to then re-visit our material issues, and use this information to get clarity on our key
focus areas
•In parallel, we are also doing a group-wide baseline assessment for carbon and water. These
footprints will feed into our future carbon and water reduction roadmaps
•Our existing projects across environment, people and marketplace are all progressing well
Business
delivery
Roadmaps
Current
assessment
Focus areas
Future operating
environment
Assessment
Physical/Transition
risks and
opportunities
Refine materiality
areas based on new
assessments
Baseline
measurement
Pathway Analysis
Review Goals
Business objective
and project setting

4. Group Results

15
Scales Corporation Limited –2022 Half Year Results
global nutrition
Income Statement
$m1H221H21% chg.1H221H21% chg.1H221H21% chg.
Underlying (excluding NZ IFRS 16)25.829.3-11.8%34.833.63.8%49.749.30.8%
NZ IFRS 16 Leases
(0.2)(0.2)(0.2)(0.2)5.75.5
Underlying (including NZ IFRS 16)25.629.0-11.7%34.733.34.0%55.454.81.0%
NZ IFRS & other adjustments:
Gain on sale of Havelock North Packhouse - 1.0 - 1.0 - 1.0
Transaction costs(0.0)(1.2)(0.0)(1.2)(0.0)(1.2)
Other adjustments0.5(0.5)0.5(0.5)1.1(0.2)
Reported26.128.3-8.0%35.132.67.5%56.454.53.6%
Notes:
1. Prepared on an Underlying basis (including the effects of NZ IFRS 16 Leases). A reconciliation to NZ IFRS is provided in Appendix I
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 of $9.0m (1H22) vs $4.3m (1H21)
4. A combination of an increase in the apple tree useful life assumption and the impact of revalutions has led to a slight decrease in depreciation expense
NPAT Attributable to
Shareholders
NPATEBITDA
Diversification strategy and strong teamwork delivering resilient and solid results
•Reported NPATAttributable to Shareholders of $26.1m(down 8.0% on 1H21)
•Underlying NPATAttributable to Shareholders of $25.6m(down 11.7% on 1H21)
•Underlying NPATof $34.7m(up 4.0% on 1H21)
•Underlying EBITDA of $55.4m(up 1.0% on 1H21)

16
Scales Corporation Limited –2022 Half Year Results
global nutrition
Divisional Performance
% chg.
$m1H221H212H21FY211H22 v 1H21
Global Proteins30.416.119.035.188.6%
Horticulture24.038.01.139.1-36.8%
Logistics3.62.72.24.931.9%
Corporate(2.7)(2.0)(3.3)(5.3)31.3%
Underlying EBITDA55.454.819.073.81.0%
Underlying NPAT34.733.36.539.84.0%
Underlying NPAT
Attributable to Shareholders
25.629.00.729.8-11.7%
Notes:
2. %'s are calculated based on non-rounded figures, figures may not sum due to rounding
1. Prepared on an Underlying basis (including the effects of NZ IFRS 16 Leases). A reconciliation to NZ IFRS is provided
in Appendix I
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
Solid results underpinned by sustained growth in Global Proteins
•Global Proteins –an exceptionally strong 1H22, attributed to increased volumes sold together with changes in product mix and margins
•Horticulture –strong in-market prices to date more than offset by reduced volumes and increased costs
•Logistics –positive result notwithstanding lower volumes and difficult market conditions

17
Scales Corporation Limited –2022 Half Year Results
global nutrition
Balance Sheet
$mJun-22Jun-21
Current assets excluding cash
Trade & other receivables101.677.0
Inventories38.732.7
Agricultural produce85.474.4
Other7.611.5
Current Assets 233.3195.7
Current liabilities excl overdraft, borrowings & dividends declared
Trade & other payables(85.3)(63.0)
Lease liability(10.1)(10.4)
Other(24.7)(17.8)
Current Liabilities(120.0)(91.2)
Net Working Capital113.2104.5
Non-current assets
Property, plant & equipment214.5183.0
Other non-current assets85.582.6
Right of use asset74.978.8
Non-Current Assets374.9344.4
Capital Employed488.1448.9
Non-current and other liabilities
Deferred tax liabilities(9.4)(14.4)
Other financial liabilities(25.1)(2.5)
Dividends declared(13.4)(13.4)
Lease liability(68.4)(71.2)
Non-current and other liabilities(116.3)(101.5)
Net cash
Cash less overdraft56.391.2
Borrowings(39.4)(53.3)
Net cash16.838.0
Total Equity388.6385.4
Strong financial position
•Net Cash of $16.8mat 30 June 2022 vs $38.0mat 30 June 2021
•Agricultural produce represents unsold fruit at 30 June:
◦As at 30 June 2022, 36% of crop sold (30 June 2021: 47%)
◦As of today, ~40% of crop unsold
•Increase in net financial liabilities, reflecting the mark-to-market position of FX hedging
Net Cash Reconciliation ($m)

5. Divisional Performance

19
Scales Corporation Limited –2022 Half Year Results
global nutrition
Significant growth, reflecting ongoing global demand for petfood
•Excellent half year result:
◦Underlying EBITDA of $30.4m(1H21: $16.1m), an increase of 88.6%
◦13% increase in volumes sold
◦We expect that earnings for the 2H22will be similar to 2H21
◦The development of new organic growth opportunities remains encouraging
Petfood Ingredients -Volumes Sold (MT 000s)
Global Proteins -Underlying EBITDA ($m)

20
Scales Corporation Limited –2022 Half Year Results
global nutrition
Significant headwinds encountered
•Underlying EBITDA $24.0m(1H21: $38.0m):
◦Higher in-market pricing was offset by lower export volumes and increased labour and shipping costs
•Mr Apple own-grown volumes lower than both forecast and 2021 volumes
•Packhouse automation project progressing well
4.8
4.3
2021 Gross PickReplanting / Leases
not Renewed
RSE / CycloneFruit Size2022 Gross Pick
Gross Pick -Volume Bridge (2021 to 2022)
Horticulture -Underlying EBITDA ($m)

21
Scales Corporation Limited –2022 Half Year Results
global nutrition
Volumes affected by weather and operational effects
•The National crop volumes for 2022 are forecast to be around 6% less than 2021
◦Hawke’s Bay and other growing regions, impacted by adverse weather events during key growing period
◦Industry affected by RSEand other labour availability
•Forecast Mr Apple total own grown export volumes down 9% on prior year at 3.3mTCEs
(2021: 3.6mTCEs). Crop also impacted by:
◦Orchard redevelopment and some orchard leases not renewed
◦Cloudy weather conditions impacting size and brix of apples
•Export packout to date approximately 75% (2021: 77%)
•Forecast decrease in both Premium and Traditional variety volumes:
◦Reduced volumes of NZ Queen and Pink Lady
◦Significant % growth in Dazzle
TM
and Prince
TM
volumes
◦Traditional volumes impacted by reduced planted area of traditional varieties and weather
Mr Apple Own Export Volumes (TCE 000s)
Growth in Premium Volumes (TCE 000s)

22
Scales Corporation Limited –2022 Half Year Results
global nutrition
Market diversification partially offset effects of difficult season
•Inflation and the overall cost of living has curbed consumer spending globally
◦Expected positive demand for the upcoming China Mid-Autumn Festival, although lockdowns impacted earlier sales volumes
◦Steady demand in other Asian markets such as Thailand and Singapore, with pressure in other markets due to apples being importedfrom other countries
◦European and UK markets affected by high domestic volumes, low consumer confidence and the large summer fruit season
•Pricing above, or in line with, 2021 in most export markets:
•Continued focus on growing demand via branding and new varietals
Sales by Region (TCEs) FY21Sales by Region (TCEs) FY20Sales by Region (TCEs) FY22F*
* 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.

23
Scales Corporation Limited –2022 Half Year Results
global nutrition
2.9
3.4
3.6
2.7
3.6
1H181H191H201H211H22
Strategic value continuing to prove important
•Underlying EBITDA of $3.6m(1H21: $2.7m), an increase of 31.9%
•Ongoing pressure on the global supply chain:
◦Restricted shipping capacity, labour shortages and increased costs
•Skill and expertise of team providing vital services and sourcing solutions for both internal and external customers:
◦Opportunity to expand this offering and expertise to global markets
•Supply chain difficulties and elevated pricing expected to continue into 2023
Logistics -Underlying EBITDA ($m)

6. Outlook

25
Scales Corporation Limited –2022 Half Year Results
global nutrition
•Directors advise that Underlying Net Profit Attributable to Shareholders is now expected to be at the upper-end of the previously advised
range of $23.5m to $28.5m
◦Due to the change in earnings mix, the implied Underlying Net Profit range has increased to $35m to $43m and the Underlying EBITDA range has increased
to $65m to $75m
•In providing this updated guidance for 2022, Directors’ note:
◦Global Proteins’ earnings for 2H22 are expected to be similar to 2H21
◦Earnings from the Horticulture division remain subject to the success of the Mid-Autumn Festival sales in China and also a stronger finish to sales in the
European market than experienced in 2021
◦Mr Apple has a higher level of fruit that is unsold compared to last year
◦The challenges in global logistics are expected to continue through to at least 2023
•Finally, Scales continues to investigate an increasing number of, predominantly offshore, opportunities to grow the Global Proteins division
Scales has updated its FY22 guidance

Appendices

27
Scales Corporation Limited –2022 Half Year Results
global nutrition
Reconciliation of Divisional Underlying Profitability to Reported Profitability
$m1H221H211H221H211H221H211H221H211H221H21
Underlying / Reported Revenue309.3253.8151.799.8117.3127.467.943.6(27.6)(17.0)
EBITDA Reconciliation
Underlying EBITDA (excluding NZ IFRS 16)49.749.330.416.118.833.03.22.3(2.7)(2.1)
NZ IFRS 16 Leases5.75.50.00.05.25.00.40.40.00.0
Underlying EBITDA (including NZ IFRS 16)55.454.830.416.124.038.03.62.7(2.7)(2.0)
Other adjustments:
Gain on sale of Havelock North Packhouse - 1.0 - - - 1.0 - - - -
Change in fair value gain on apple inventory1.40.4 - - 1.40.4 - - - -
Change in gross liability for non-controlling interests0.0(0.1)0.0(0.1) - - - - - -
Equity settled employee benefits(0.3)(0.4) - - - - - - (0.3)(0.4)
Transaction costs(0.0)(1.2) - - - - - - (0.0)(1.2)
Reported EBITDA56.454.530.516.025.439.53.62.7(3.0)(3.7)
EBIT Reconciliation
Underlying EBIT (excluding NZ IFRS 16)44.544.030.115.714.128.23.12.2(2.7)(2.1)
NZ IFRS 16 Leases1.21.10.00.01.11.00.10.10.00.0
Underlying EBIT (including NZ IFRS 16)45.745.230.115.715.229.33.22.3(2.7)(2.1)
Other adjustments:
Gain on sale of Havelock North Packhouse - 1.0 - - - 1.0 - - - -
Change in fair value gain on apple inventory1.40.4 - - 1.40.4 - - - -
Change in gross liability for non-controlling interests0.0(0.1)0.0(0.1) - - - - - -
Equity settled employee benefits(0.3)(0.4) - - - - - - (0.3)(0.4)
Transaction costs(0.0)(1.2) - - - - - - (0.0)(1.2)
Reported EBIT46.844.830.115.516.530.73.22.3(3.1)(3.7)
GroupHorticultureGlobal ProteinsLogisticsCorporate & Eliminations

28
Scales Corporation Limited –2022 Half Year Results
global nutrition
Reconciliation of Divisional Underlying Profitability to Reported Profitability
$m1H221H211H221H211H221H211H221H211H221H21
NPAT Reconciliation
Underlying NPAT (excluding NZ IFRS 16)34.833.624.313.310.120.32.21.6(1.8)(1.6)
NZ IFRS 16 Leases(0.2)(0.2)(0.0)0.0(0.2)(0.2)(0.0)(0.0)(0.0)(0.0)
Underlying NPAT (including NZ IFRS 16)34.733.324.313.39.920.12.21.5(1.8)(1.6)
Other adjustments:
Gain on sale of Havelock North Packhouse - 1.0 - - - 1.0 - - - -
Change in fair value gain on apple inventory1.40.4 - - 1.40.4 - - - -
Change in gross liability for non-controlling interests0.0(0.1)0.0(0.1) - - - - - -
Equity settled employee benefits(0.3)(0.4) - - - - - - (0.3)(0.4)
Transaction costs(0.0)(1.2) - - - - - - (0.0)(1.2)
Tax effect of other NZ IFRS adjustments(0.6)(0.3)(0.2)(0.2)(0.4)(0.1) - - - -
Reported NPAT35.132.624.112.910.921.42.21.5(2.1)(3.3)
NPAT Attributable to Shareholders Reconciliation
Underlying NPATAS (excluding NZ IFRS 16)25.829.315.39.010.120.32.21.6(1.8)(1.6)
NZ IFRS 16 Leases(0.2)(0.2)(0.0)0.0(0.2)(0.2)(0.0)(0.0)(0.0)(0.0)
Underlying NPATAS (including NZ IFRS 16)25.629.015.39.09.920.12.21.5(1.8)(1.6)
Gain on sale of Havelock North Packhouse
Gain on sale of Havelock North Packhouse - 1.0 - - - 1.0 - - - -
Change in fair value gain on apple inventory1.40.4 - - 1.40.4 - - - -
Change in gross liability for non-controlling interests0.0(0.1)0.0(0.1) - - - - - -
Equity settled employee benefits(0.3)(0.4) - - - - - - (0.3)(0.4)
Transaction costs(0.0)(1.2) - - - - - - (0.0)(1.2)
Tax effect of other NZ IFRS adjustments(0.6)(0.3)(0.2)(0.2)(0.4)(0.1) - - - -
Reported NPAT Attributable to Shareholders26.128.315.18.710.921.42.21.5(2.1)(3.3)
GroupHorticultureGlobal ProteinsLogisticsCorporate & Eliminations

29
Scales Corporation Limited –2022 Half Year Results
global nutrition
Theinformation 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 supplements our full year results announcement. It should be read subject to and in conjunction with the additional information in that release, and other material which we have
released to the NZX.
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 of Underlying to reported 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.

---

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 2022
Previous Reporting Period 6 months to 30 June 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$309,308 22%
Total Revenue $309,308 22%
Net profit/(loss) from
continuing operations
$26,059 -8%
Total net profit/(loss) $26,059 -8%
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 $2.40
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

24/08/2022

Unaudited financial statements accompany this announcement.

---

Scales Corporation Limited
Condensed Consolidated Interim Financial Statements
for the six months ended 30 June 2022

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
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
Nadine TunleyBankers
Qi XinANZ 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 4
Mark Hutton (Chair)32 Hood street
Tim GoodacreHamilton 3204
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 2022
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
Note$000's$000's$000's
Revenue6309,308253,836514,551
Cost of sales(228,710)(179,455)(400,663)
80,59874,381113,888
Administration and operating expenses(25,496)(22,988)(47,241)
Reversal of impairment on revaluation--1,650
Share of profit of entities accounted for using the equity method1,2931,3523,162
Other income275,4006,022
Other losses-(3,666)(5,862)
EBITDA56,42254,47971,619
Amortisation(162)(174)(342)
Depreciation(5,019)(5,137)(10,443)
Depreciation of right of use asset(4,471)(4,360)(8,760)
EBIT46,77044,80852,074
Finance revenue4726621,203
Finance cost(502)(845)(1,786)
Finance cost of lease liability(1,447)(1,482)(2,964)
PROFIT BEFORE INCOME TAX EXPENSE45,29343,14348,527
Income tax expense(10,211)(10,515)(11,577)
PROFIT FOR THE PERIOD35,08232,62836,950
Profit for the period is attributable to:
Equity holders of the Company26,05928,31426,925
Non-controlling interests9,0234,31410,025
35,08232,62836,950
EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Basic earnings per share (cents):918.520.119.1
Diluted earnings per share (cents):918.420.119.1
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 2022 (continued)
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
$000's$000's$000's
PROFIT FOR THE PERIOD35,08232,62836,950
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss:
Loss on cash flow hedges(24,203)(13,963)(20,730)
Income tax relating to cash flow hedges6,7773,9105,804
Share of other comprehensive income of joint ventures(506)(706)(1,015)
Income tax relating to share of other comprehensive income of joint ventures142198284
Foreign exchange gain on translating foreign operations1,289296692
(16,501)(10,265)(14,965)
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings--22,362
Income tax relating to buildings--(1,647)
Revaluation of apple trees--3,048
Income tax relating to apple trees--(854)
Remeasurement of net defined benefit liability--318
--23,227
OTHER COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD(16,501)(10,265)8,262
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD18,58122,36345,212
Total comprehensive income for the period attributable to:
Equity holders of the Company9,55818,04935,060
Non-controlling interests9,0234,31410,152
18,58122,36345,212
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 2022
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 2022
At 1 January 202299,58892,160192,644384,3925,922390,314
Profit for the year--26,05926,0599,02335,082
Other comprehensive loss for the period-(16,501)-(16,501)-(16,501)
Total comprehensive income for the period-(16,501)26,0599,5589,02318,581
Recognition of share-based payments-289-289-289
Shares sold116--116-116
Shares fully vested1,236(584)(128)524-524
Dividends7--(13,445)(13,445)(7,741)(21,186)
Balance at 30 June 2022100,94075,364205,130381,4347,204388,638
Unaudited
Six months ended 30 June 2021
At 1 January 202196,37186,774190,622373,7674,638378,405
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 vested2,870(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
Audited
Year ended 31 December 2021
At 1 January 202196,37186,774190,622373,7674,638378,405
Profit for the year--26,92526,92510,02536,950
Other comprehensive income for the period-8,135-8,1351278,262
Total comprehensive income for the period-8,13526,92535,06010,15245,212
Reclassification of revaluation reserve-(2,224)2,224---
Recognition of share-based payments-726-726-726
Shares sold347--347-347
Shares fully vested2,870(1,251)(295)1,324-1,324
Dividends7--(26,832)(26,832)(8,868)(35,700)
Balance at 31 December 202199,58892,160192,644384,3925,922390,314
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 2022
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
Note$000's$000's$000's
EQUITY
Share capital100,94099,24199,588
Reserves875,36473,48492,160
Retained earnings205,130207,452192,644
Equity attributable to Scales Corporation Limited shareholders381,434380,177384,392
Equity attributable to non-controlling interests7,2045,2225,922
TOTAL EQUITY388,638385,399390,314
CURRENT ASSETS
Cash and bank balances36,26430,94235,398
Term deposits20,00060,29685,000
Trade and other receivables101,56877,04328,658
Other financial assets104,0888,1665,923
Agricultural produce85,36374,42024,561
Inventories38,72732,69029,641
Prepayments3,5323,3664,056
TOTAL CURRENT ASSETS289,542286,923213,237
NON-CURRENT ASSETS
Property, plant and equipment214,497182,974213,869
Investments accounted for using the equity method26,33825,80026,051
Goodwill46,09842,74743,392
Other financial assets1012,37413,31711,074
Computer software670710717
Right of use asset74,93578,84176,431
TOTAL NON-CURRENT ASSETS374,912344,389371,534
TOTAL ASSETS664,454631,312584,771
CURRENT LIABILITIES
Bank overdrafts--2,196
Trade and other payables85,26562,96523,466
Dividend declared713,44513,41313,419
Current tax liabilities8,72812,572479
Other financial liabilities1015,9585,2367,410
Lease liability10,09710,40410,237
TOTAL CURRENT LIABILITIES133,493104,59057,207
NON-CURRENT LIABILITIES
Borrowings39,44853,25236,060
Deferred tax liabilities9,38614,40722,944
Defined benefit plan net liability470653427
Other financial liabilities1024,6281,8588,338
Lease liability68,39171,15369,481
TOTAL NON-CURRENT LIABILITIES142,323141,323137,250
TOTAL LIABILITIES275,816245,913194,457
NET ASSETS388,638385,399390,314
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 2022
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
Note$000's$000's$000's
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers240,217192,221505,854
Dividends received5001,0002,251
Interest received7051,0871,416
241,422194,308509,521
Cash was disbursed to:
Payments to suppliers and employees(261,543)(220,583)(453,109)
Interest paid(1,949)(2,327)(4,750)
Income tax paid(8,496)(6,665)(11,823)
(271,988)(229,575)(469,682)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES(30,566)(35,267)39,839
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from matured term deposits65,00044,33619,632
Advances repaid412781,231
Sale of property, plant and equipment33,5353,773
65,04448,14924,636
Cash was applied to:
Purchase of computer software(115)(530)(705)
Purchase of property, plant and equipment(5,256)(6,653)(15,822)
Purchase of financial instruments--(325)
Puchase of non-controlling shareholding13(2,180)--
(7,551)(7,183)(16,852)
NET CASH PROVIDED BY INVESTING ACTIVITIES57,49340,9667,784
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Treasury stock sold116-347
116-347
Cash was applied to:
Repayments of term facility borrowings--(18,000)
Repayments of lease liabilities(4,205)(4,010)(7,839)
Dividends paid(13,419)(13,359)(26,772)
Dividends paid to non-controlling interests(7,741)(3,730)(8,868)
(25,365)(21,099)(61,479)
NET CASH USED IN FINANCING ACTIVITIES(25,249)(21,099)(61,132)
NET INCREASE (DECREASE) IN NET CASH1,678(15,400)(13,509)
Net foreign exchange difference1,384308677
Cash and cash equivalents at the beginning of the period33,20246,03446,034
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD36,26430,94233,202
Represented by:
Cash and bank balances36,26430,94235,398
Bank overdrafts--(2,196)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD36,26430,94233,202
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 2022 (continued)
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
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 year35,08232,62836,950
Non-cash items:
Gain on disposal of property, plant and equipment(3)(1,009)(1,132)
Loss (gain) on hedge instruments recycled to profit or loss2,856(3,761)-
Government grant-(866)(879)
Amortisation162174342
Depreciation9,4909,49719,203
Reversal of impairment (impairment) on revaluation--(1,650)
Share of equity accounted results(1,293)(1,352)(3,162)
FX option premiums157229358
Deferred tax(6,801)(7,121)871
Share-based payments289450726
Change in gross liability on put options(24)1411,852
Operating cash receipts not included in profit for the period:
Dividends received from equity accounted company5001,0002,250
Changes in net assets and liabilities:
Trade and other receivables(71,886)(57,344)(8,828)
Agricultural produce(60,802)(50,398)(539)
Inventories(8,579)(6,751)(3,498)
Prepayments539537(148)
Trade and other payables61,23137,708(1,760)
Current tax8,51610,971(1,117)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES(30,566)(35,267)39,839
For and on behalf of the Board of Directors who authorised the issue of these interim financial statements on 23 August 2022.
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 2022
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 at the Orange Level of the COVID-19
Protection Framework in New Zealand. The Group operations outside of New Zealand continue to be also 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.
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 2021.
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 2022
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:
Global Proteins (previously 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.
Horticulture: orchards, fruit packing and marketing. Mr Apple New Zealand Limited, New Zealand Apple Limited,
Fern Ridge Produce Limited and Longview Group Holdings 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.
Global
proteinsHorticultureLogisticsOtherEliminationsTotal
$000's$000's$000's$000's$000's$000's
Unaudited
Six months ended 30 June 2022
Total segment revenue151,692117,33967,8851,332(28,940)309,308
Inter-segment revenue--(27,409)(1,531)28,940-
Revenue from external customers151,692117,33940,476(199)-309,308
Segment profit (loss) before income tax30,03115,2033,490(3,431)45,293
Segment assets131,060461,15528,70843,531-664,454
Segment liabilities34,653197,58317,48626,094-275,816
Unaudited
Six months ended 30 June 2021
Total segment revenue99,829127,37543,6221,347(18,337)253,836
Inter-segment revenue--(16,985)(1,352)18,337-
Revenue from external customers99,829127,37526,637(5)-253,836
Segment profit (loss) before income tax15,51429,3632,761(4,495)-43,143
Segment assets106,461422,63720,73881,476-631,312
Segment liabilities22,192163,32011,81748,584-245,913
Audited
Year ended 31 December 2021
Total segment revenue218,852243,42281,8783,453(33,054)514,551
Inter-segment revenue--(30,166)(2,888)33,054-
Revenue from external customers218,852243,42251,712565-514,551
Segment profit (loss) before income tax32,10420,6883,834(8,099)-48,527
Segment assets112,530347,37622,382102,483-584,771
Segment liabilities27,064126,00512,96128,427-194,457
11

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2022
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
2022
30 June
2021
31 December
2021
$000's$000's$000's
By nature:
Revenue from the sale of goods256,586205,468428,738
Revenue from the rendering of services50,87437,39569,082
Fees and commission(5)(5)13
Net foreign exchange (loss) gain(1,565)8,30312,268
Rental revenue3,4182,6754,450
309,308253,836514,551
By segment and type:
Horticulture - sale of agricultural produce107,652116,242226,606
Horticulture - agricultural produce related services6,2748,46312,375
Horticulture - other3,4132,6704,441
Global proteins - sale of pet food ingredients147,34397,353213,416
Global proteins - other4,3492,4765,436
Logistics services40,47626,63751,712
Other(199)(5)565
309,308253,836514,551
7. DIVIDENDS
During the six months ended 30 June 2022 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 2021. This final dividend was paid on 8 July 2022.
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.
12

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2022
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 2022
At 1 January 202286,3105,021(70)1,277(168)(210)92,160
Other comprehensive income (loss)-(17,426)(364)-1,289-(16,501)
Transfer to retained earnings-------
Recognition of share-based payments---289--289
Shares fully vested---(584)--(584)
Balance at 30 June 202286,310(12,405)(434)9821,121(210)75,364
Unaudited
Six months ended 30 June 2021
At 1 January 202165,62519,9476611,802(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
Audited
Year ended 31 December 2021
At 1 January 202165,62519,9476611,802(860)(401)86,774
Other comprehensive income (loss)22,909(14,926)(731)-6921918,135
Transfer to retained earnings(2,224)-----(2,224)
Recognition of share-based payments---726--726
Shares fully vested---(1,251)--(1,251)
Balance at 31 December 202186,3105,021(70)1,277(168)(210)92,160
13

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2022
9. EARNINGS PER SHARE
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
Profit attributable to equity holders of the Company ($000's):26,05928,31426,925
Weighted average number of shares:
Ordinary shares140,900,047140,664,105140,900,047
Effect of dilutive ordinary shares (non-vested Senior Executive Share Scheme)351,554360,608351,554
Weighted average number of ordinary shares for diluted earnings per share141,251,601141,024,713141,251,601
Earnings per share (cents):
Basic18.520.119.1
Diluted18.420.119.1
14

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2022
10. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
$000's$000's$000's
Current financial assets at fair value:
Foreign currency derivative instruments3,9128,1665,923
Interest rate swap contracts and forward rate agreements176--
4,0888,1665,923
Non-current financial assets:
At fair value:
Foreign currency derivative instruments10,25911,68910,185
Interest rate swap contracts and forward rate agreements941-198
Shares in unlisted companies184184184
At amortised cost:
Employee loans9901,444507
12,37413,31711,074
Current financial liabilities at fair value:
Foreign currency derivative instruments11,0694811,822
Interest rate swap contracts and forward rate agreements-396173
Put option4,8894,3595,415
15,9585,2367,410
Non-current financial liabilities at fair value:
Foreign currency derivative instruments23,8404236,387
Interest rate swap contracts and forward rate agreements-298-
Put option7881,1371,951
24,6281,8588,338
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 2022 to 2027 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 2022
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 interest rate 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
2022
30 June
2021
31 December
2021
$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' fees1,7641,7512,986
Share-based payments386213416
Post-employment benefits575199
2,2072,0153,501
(c) Transactions with equity accounted entities
Revenue from sale of goods1,2357251,623
Revenue from services2,8971,9814,547
Materials and consumables purchased(311)-(1,034)
Dividends received5001,0002,250
Trade receivables at balance date584336479
16

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2022
12. CAPITAL COMMITMENTS
UnauditedAudited
Six months endedYear ended
30 June
2022
30 June
2021
31 December
2021
$000's$000's$000's
Commitments entered into in respect of apple trees3,1802,5661,264
Commitments entered into in respect of property, plant and equipment441-2,912
3,6212,5664,176
13. PURCHASE OF NON-CONTROLLING INTEREST
In May 2022, the minority shareholders of Fern Ridge Produce Limited exercised their option to put their shareholding
to New Zealand Apple Limited for the total value of $2,180,000.
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