NZK 1HY23 Half Year Results

Market Announcement
September 28, 2022
NZK - NEW ZEALAND KING SALMON ANNOUNCES 1HY23 RESULT

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for
the six months period ended 31 July 2022 (1HY23). Key points include:

• We reaffirm full year earnings guidance given in April 2022 of an $8m - $12m pro forma EBITDA
loss.

• Net loss after tax of $24.5m, following a challenging start to the year with sea farm
mortalities, lower harvest and a decline in biomass at sea.
• Revenues are consistent with the prior comparable period (PCP) at ~$80m as a
combination of price increases and customer mix have offset reduced sales volumes
through 1HY23.
• Sales volumes decreased from 3,669mt in 1HY22 to 2,886mt 1HY23 (a decrease of 21%)
consistent with the consequences of a reduced harvest.
• The mortality event in January 2022 continued into 1HY23 and increased mortality cost by
$11.9m from $10.4m in 1HY22 to $22.3m.
• Pro-forma EBITDA for 1HY23 was a loss of $13.7m compared to profit of $3.3m for the
1HY22. This is predominately due to the mortality event affecting the first half of FY23, while
1HY22 included $13.5m of early forex close-outs included in other income.
• Finished goods inventories continue to be managed down sensibly following the build-up
which occurred through COVID disruptions.
• Post the equity raise in May 2022 net bank (debt)/cash position has improved from a debt
position of $44.1m on 31 January 2022 to a net cash position of $15.6m at 31 July 2022. In
addition to cash on hand, NZ King Salmon has access to a $6.5m revolving debt facility which
remains undrawn.


New Zealand King Salmon Chairman John Ryder said: “As previously indicated we had a
disappointing start to the year because of high mortality and the cost of this was $22m for 1HY23.
We then had to begin rebuilding our biomass and accordingly we restricted our harvest and sales.
We introduced a number of cost-saving initiatives, and our financial performance has improved
although there is more work to do. Our recovery progress is in line with previously communicated
guidance.”

CEO Grant Rosewarne acknowledged it had been a tough start to the financial year, but the outlook
was improving with price increases implemented across all markets. “We introduced our new
aquaculture strategy as outlined at full year with three farms in the Pelorus already fallowed. We
also made the decision to mothball our Waiau freshwater facility which is surplus to current
requirements.”

“We successfully completed a $60.1 million pro rata rights offer and proceeds were used to repay
debt which has left us with net cash of $15.6 million. We now have to rebuild biomass from
3,700MT back up to around 5,000MT.

“As outlined previously, we downsized the company, which was necessary to align with the reduced
harvest, which was not an easy decision to make. We have been fortunate that there are a number
of staff shortages in other businesses, so only 23 positions were made redundant as our business
reduced from 580 team members to 452, largely through attrition,” Mr Rosewarne said.

“We sensibly reduced capex and we are forecasting capex spend of $6.5m to $7.5m, compared to
$13m last year. Much of the capex relates to pre committed projects, such as a new barge and net
cleaner and work on our Blue Endeavour application.”

“Along with introducing price increases across all markets, we have made improvements to our
customer and product mix, and we have reduced our promotional budget. There has been a large
focus on supply and demand this year following a reduced harvest. Our strong markets remain North
America for Ōra King and domestically our Regal brand remains New Zealand’s most preferred
smoked salmon,” Mr Rosewarne added.

Recent media articles have indicated the potential for another marine heatwave this summer. The
change in our aquaculture model is designed to provide strong mitigation against the effects of
warmer temperatures.

“The hearing for our open ocean Blue Endeavour application, 7kms north of Cape Lambert in the
Cook Strait, was formally closed at the beginning of September and a decision is now expected by the
end of the year. This project is expected to have multiple benefits including increase in scale of
operations, reduction in operating costs and improvements in fish health.”

Blue Endeavour would provide an opportunity to recommence farming at three of the fallowed
farms in the Pelorus Sound, which will be used as nursery sites for 9 months of the year, avoiding the
summer months with fish being transferred to Blue Endeavour at ~1.5kgs for full grow out to ~4.2kgs
average weight. This represents an efficient use of assets, capital, and resources.

The application is aligned with the Government’s Aquaculture Strategy which was launched in late
2019 and now has an accelerated objective of the industry achieving $3 billion revenue by 2030.
Ends
Grant Rosewarne, CEO, New Zealand King Salmon Investments Ltd,
grant.rosewarne@kingsalmon.co.nz
Ben Rodgers, CFO and Company Secretary, New Zealand King Salmon Investments Ltd,
ben.rodgers@kingsalmon.co.nz

About New Zealand King Salmon
New Zealand King Salmon is the world’s largest aquaculture producer of the premium King salmon
species. We operate under our four key brands: Ōra King, Regal, Southern Ocean, and Omega Plus,
as well as our New Zealand King Salmon label. We have been growing and selling King salmon to
consumers for more than 30 years.


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

---

1HY23 HALF YEAR FINANCIAL RESULTS

1HY23 HALF YEAR RESULTS
PRESENTERS
1
Grant Rosewarne
Chief Executive Officer
Ben Rodgers
Chief Financial Officer
Grant Lovell
GM Aquaculture

1HY23 HALF YEAR RESULTS
DISCLAIMER
2
The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, to the maximum extent permitted by law, neither
New Zealand King Salmon Investments Limited nor any of its directors, employees, shareholders nor any other person shall haveany 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 and any forward-looking statements are subject to material adverse events, significant one-off expenses or other unforeseeable circumstances. As such, actual results
may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release to you or to provide you with further
information about New Zealand King Salmon Investments Limited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial measures used in
this presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance expense / (income), and taxation expense to net earnings
•EBIT. We calculate EBIT by adding back (or deducting) finance expense / (income), and taxation expense to net earnings
•Pro Forma Operating EBITDA refers to earnings before interest, tax, depreciation and amortisation after allowing for pro forma adjustments as described in the Appendix to this document
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position and returns. They should
not, however, 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.
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. An investor should, before making any investment decisions, consider the appropriateness of the information in this presentation, and seek professional advice,
having regard to the investor’s objectives, financial situation and needs.
This presentation is solely for use of the party to whom it is provided.

1HY23 HALF YEAR RESULTS
EXECUTIVE SUMMARY
3
1HY23
•1HY23 Net loss after tax of $24.5m, performance impacted by summer mortality with a higher mortality expense, lower harvest and a decline in
biomass at sea
•Pro forma EBITDA loss of $13.7m
•Mortality has continued to improve over the cooler months (Q1 $19m v Q2 $3m) albeit tracking higher than our original forecasts
•Price increases have been successfully implemented in all markets. This has enabled us to keep revenue flat at ~$80m
•Focus on right sizing the business as we move to a long-term sustainable harvest of 6,500 tonnes G&G (from FY24)(7,386 tonnes GW)
•Aspects of the Covid hangover remain in the form of supply chain bottlenecks and cost of freight
Equity raise
•NZ King Salmon completed a $60.1 million pro rata rights offer in 1HY23 - proceeds were used to repay debt
•Net cash position of $15.6m at31 July 2022 in addition to $6.5m a revolving debt facility which remains undrawn
Reset of aquaculture
farming model
•Twofarms in the Peloruswere fully harvested out in 1HY23 and are now fallow, with Forsyth due to be fallowed at the end of August after harvest.
Waitatawill remain operational for seasonal smolt and evaluating vaccine strategies
•In addition to this we have made the decision to mothball our Waiau Freshwater Facility which is surplus to NZ King Salmon’s requirements under
the current aquaculture farming model
FY23 guidance
•Remain on track to deliver pro forma EBITDA guidance of a loss of $8m to $12m

1HY23 HALF YEAR RESULTS
1HY23 PERFORMANCE
01
4

1HY23 HALF YEAR RESULTS1HY23 HALF YEAR RESULTS
1HY23 OPERATIONAL HIGHLIGHTS
$80
1HY23
REVENUE OF
MILLION
2,773
METRIC TONNES
HARVESTED
DURING 1HY23
40%
GEOGRAPHIC SPREAD
OF REVENUE
4%
37%
9%
EUROPE
5%
5%
NORTH
AMERICA
ASIA EX JAPAN
JAPAN
NEW
ZEALAND
AUSTRALIA
5
15.1
20.8
(5.6)
(5.6)
(24.5)
(25.0)
(15.0)
(5.0)
5.0
15.0
25.0
1HY191HY201HY211HY221HY23
(Dec)(Dec)(Jul)(Jul)(Jul)
1HY23 GAAP NPAT
17.3
16.5
7.1
3.3
(13.7)
(25.0)
(15.0)
(5.0)
5.0
15.0
25.0
1HY191HY201HY211HY221HY23
(Dec)(Dec)(Jul)(Jul)(Jul)
1HY23 PRO FORMA OPERATING EBITDA
87.7
84.9
84.2
71.2
95.2
80.1
94.4
80.0
1HY19
(Dec)
2HY19
(Jun)
1HY20
(Dec)
2HY20
(Jun)
FY21
(7m - Jan)
1HY22
(Jul)
2HY22
(Jan)
1HY23
(Jul)

1HY23 HALF YEAR RESULTS
OUR SUSTAINABILITY DEVELOPMENTS
• Committed to reusable, recyclable or compostable packaging
across our business - currently at 55%
• Participated in annual Global Salmon Initiative (GSI) sustainability
report representing members from across the salmon industry
• Submission of second Modern Slavery Report
• Preparation for annual Best Aquaculture Practices audit
• Preparation for the incoming External Reporting Board (XRB)
Climate-related Disclosures (effective for financial year 2024)
We continue to progress on our sustainability journey:
6

1HY23 HALF YEAR RESULTS
KEEPING OUR BRANDS PROMINENT
Creating innovative strategies for our markets:
•Connecting with our end-users through:
►Focus on engagement with Ōra King Ambassadors
►In-house digital and social media programmes for our retail and foodservice brandsto maintain brand
presence with relevant audiences in the most cost-efficient way possible
►Continuously refreshing Omega Plus digital, social media and ambassador programmes to maintain
brand presence in NZ and China market
►Establish Omega Plus brand presence in North America and accumulate high end pet owner fans on
social media
7
Regal Brand Insights
►Regal remains New Zealand’s most preferred smoked salmon brand proving consumer trust in the
Regal brand, and theexceptional quality & consistency of our King salmon and value-added product
offerings
►16,000 people visit our global Regal website every month (80% growth YOY). Visitor datahelps us
learn more about our Regal shoppers and their interests. As themost popular pages are for recipes,
we continue to develop first class recipes and content to engage with our Regal fans

1HY23 HALF YEAR RESULTS
SALES PERFORMANCE
Continuing to target branded premium markets
First half salesSecond half sales
Sales performance
•Steady performance across both foodservice and retail sectors.The mortality event
in January 2022 requires NZKS to rebuild our biomass at sea, thereby restricting
harvest and sales.
•North American premium demand remains strong with Ōra King in foodservice and
Regal branded retail. Thereduction of volume when comparing to 1HY22 is due to
ending of frozen whole salmon agreements.
•Japan marketmaintains a consistent performance.Both foodservice sectors (sushi
chains) and our retail businessremain as the corevolume.The reduction when
comparing to 1HY22is due to cessation of frozen whole salmon agreements.
•Asian markets, excluding Japan, have emerged post Covid in a strong position.
NZKS exit from China market is the main contributor to the decline in
1HY23volumes when compared to previous years.
•The Australian market continues the strong post Covid recovery. Demand
throughout 1HY23 continues across all branded product ranges. The recent Coles
Supermarket volume contributes to the growth compared to 1HY22.
•European market growth is predominantly retail supermarket programs and
branded foodservice expansion.
Domestic Market (MT)North America (MT)
Australia (MT)Europe (MT)
Japan (MT)Asia (MT)Excludes Japan
8
1,597
1,686
1,205
1,333
1,156
1,987
1,550
1,550
1,417
FY2019FY2020FY2021FY2022FY2023
1,033
1,177
1,047
1,454
1,086
1,179
1,279
1,301
1,778
FY2019FY2020FY2021FY2022FY2023
252
309
177
129
104
253
269
149
219
FY2019FY2020FY2021FY2022FY2023
127
139
93
449
150
117
136
313
266
FY2019FY2020FY2021FY2022FY2023
230
238
169
203
258
296
218
240
290
FY2019FY2020FY2021FY2022FY2023
64
52
54
100
131
75
71
82
132
FY2019FY2020FY2021FY2022FY2023

1HY23 HALF YEAR RESULTS
AVERAGE SALE PRICES
Branding underpins customer loyalty and value to our business
9
New Zealand King Salmon’s core branded and differentiated business continues to attract premium pricing. Pricing for these products has remained
firm.
Price increases have been implemented in all markets. Large focus on managing supply and demand in FY23 following a reduced harvest associated with the summer
mortality.
1 Volume weighted average sales price for all exported salmon based on foreign exchange rates achieved as outlined on the table above.
2 Covid Impact –price promotion
3 Covid Impact –frozen unbranded sales
Sales Prices
1
and Exchange Rates
1HY201HY211HY221HY23
Average Sales price per kg
Domestic Sales
NZD22.7125.0724.07
2
28.24
Export Sales (All Markets)NZD24.2424.7519.94
3
27.95
Export Sales (All Markets) [Excl. Frozen Whole Fish]NZD24.3224.9023.6428.14
Foreign Exchange Rates
NZD:AUD0.930.950.940.94
NZD:USD0.670.670.670.68
NZD:JPY70.6766.5870.3772.45

1HY23 HALF YEAR RESULTS
FISH PERFORMANCE
•As previously disclosed mortality in 1HY23 was elevated by the fallout from themortality event at the end of FY22. Over the latter part of 1HY23,
fish performance has returned to expected parameters.
•The change to the farming model is being implemented with the fallowing of a number ofour Pelorus farm sites.As of 31 July 2022, Waihinau
Bay and Kōpaua have been fully harvested out and are now fallowed. Forsyth is being harvested in August and will be fallowed afterwards. Out
of the two non-operational Crail Bay sites, one site is fallowed with the other site being used by a third party for a seaweed trial. The remaining
Waitata site is being used as an active salmon farm to evaluate vaccine and seasonal smolt strategies.
Biological Performance
1HY231HY22% Chg.
Harvest Volume G&G (t)2,7733,435-19%
Average G&G Harvest Weight (kg)3.603.1913%
Harvest VolumeGW
1
(t)3,1523,903-19%
Feed Conversion Ratio (FCR)1.691.98-14%
Closing Livestock Biomass3,7916,473-41%
Feed Cost ($ / Kg of feed)2.752.3915%
1
For comparison to other competitive industries we have added in greenweight(GW)
10
SoundFarm
Volume Harvested (G&G)
1HY231HY22
Queen Charlotte
Ruakaka-364
Otanerau--
Tory Channel
Clay Point524-
Te Pangu1,6996
Ngamahau-1,530
Pelorus Sound
Waitata281,391
Kōpaua124131
Waihinau136-
Forsyth252-
Freshwater
1012
Total2,7733,435

1HY23 HALF YEAR RESULTS
1HY23 RESULTS
02
11

1HY23 HALF YEAR RESULTS
1HY23 HEADLINE FINANCIAL PERFORMANCE
•Gross Margin % 1HY22 was negatively impacted by a change in the farming model (single year class), 1HY23 was negatively impacted by higher sea farm mortality
•Pro forma EBITDAIn addition to the gross margin impacts noted above, 1HY22 benefitted from the early close out of in the money FX contracts
•GAAP NPAT –In addition to the gross margin impacts noted above, 1HY23 was impacted by a reduced fair value gain on biological transformation due to the higher sea
farm mortalities over summer and smaller fish sizes
12
1
A full reconciliation between GAAP and Pro Forma results is shown on pages 21 and 22 of this presentation
Group Financial Performance
GAAPPro-Forma*
NZ$000s1HY231HY22% chg.1HY231HY22% chg.
Volume Sold (t)2,886 3,669 -21%2,886 3,669 -21%
Revenue80,033 80,095 0%80,033 80,095 0%
Gross Margin(8,045)12,880 -162%(710)3,790 -119%
Gross Margin %-10%16%-1%5%
EBITDA(17,984)(1,114)-1514%(13,672)3,290 -516%
EBITDA %-22%-1%-17%4%
EBIT(22,343)(6,284)-256%(16,639)(1,029)-1517%
NPAT(24,487)(5,596)-338%(21,144)2,058 -1127%

1HY23 HALF YEAR RESULTS
PRO FORMA
1
EBITDA COMPARISON
13
•Revenuehas remained consistent with the prior comparable period with improvements in pricing and product mix offset by a reduction in harvest post the summer mortality
•Cost of goods sold decrease from 1HY22 has been driven by the decrease in harvest volumes
•MortalityThe increase in mortality on 1HY23 reflects the mortality event which started at the end of FY22 and carried on into 1HY23
•Processing & Corporate costs Cost savings are underway across the business, these are being partially eroded by inflationary pressure
•There have been no early close outs of in the money FX contractsin 1HY23
1
Refer to pages 21 & 22 for full reconciliation between GAAP and Pro Forma results
$6.6
6.7

1HY23 HALF YEAR RESULTS
Following the $60.1m equity raise NZ King Salmon is now in a net cash position:
•NZ King Salmon’s net bank (debt)/cash position has improved from a debt position of $44.1m
at 31 January 2022 to a net cash position of $15.6m at 31 July 2022.In addition to cash on
hand NZ King Salmon has access to a $6.5m revolving debt facility which remains undrawn.
•Inventory - Finished goods on hand have decreased as high value SKUs (smoked
products)continue to reduce back to normal levels as we exit the build of these products from
COVID disruptions and prioritise fresh Salmon saleswith the reduced FY23 harvest.
•Biological assets have decreased significantly due to the summer mortality event with the value
of biological assets on hand decreasing from $75.0m at 31 January 2022 to $55.2m at 31 July
2022 (Estimated Closing Biomass 6,473 MT at 31 January 2022to 3,791 MT at 31 July
2022).Biomass at sea will continue to grow over the next 12 months as we rebuild to our
sustainable levels under the new farming model.
•NZ King Salmon invested $4.5m in capex for the 6 months ended 31 July 2022.A majority of
this spend related to the completion of capex projects commenced in FY22 (Otanerau pens,
New barge and net cleaning vessel) in addition to the ongoing expenditure associated with the
Blue Endeavour resource consent application.
14
BALANCE SHEET – RECAPITALISED AND DELEVERAGED
Group Financial Position
Jul-22Jan-22
NZ$000sUnauditedAudited
Cu r r en t A ssets
Cash and equivalents19,8002,913
Receivables11,97719,817
Taxation Receivable393294
Inventories29,23334,636
Biological Assets47,61765,529
Derivative financial assets2,2831,338
111,303124,527
Non-current Assets
Property, plant & equipment51,89050,620
Biological assets7,5689,432
Other14,03312,749
73,49172,801
T o ta l Asse ts184,794197,328
Current Liabilities
Loans (external)1,63649,659
Lease Liabilities1,4031,531
Payables14,84416,434
Other8,9766,993
26,85974,617
Non-Current Liabilities
Loans (external)3,500 -
Lease Liabilities4,1134,402
Other9,1037,080
16,71611,482
Total Liabilities43,57586,099
Net Assets141,219111,229
Net Cash / (Debt)15,550(44,087)

1HY23 HALF YEAR RESULTS
STRATEGY UPDATE &
OUTLOOK
15
03

1HY23 HALF YEAR RESULTS
STRATEGIC INITIATIVES - RIGHT SIZING THE BUSINESS
16
InitiativeHow we are getting thereStatus
Fallow the Pelorus sea farms
To mitigate mortality risk from warmer waters over summer we plan to fallow 3 of the 4
active Pelorus farms.
At the end of July 2022, two farms have been fallowed,one is nearing the end of its
harvest and will be subsequently fallowed. The remaining Waitata site is continuing to
be used as an operational farm to evaluate vaccine and seasonal smolt strategies.
Right size our people numbers
Moving our headcount from ~570 to 452 to better meet our business needs. Good
progress has been made in this area (with few redundancies – due to tight labour
market) and as at 31 July 22 headcount sits at 470.
Mothball the Waiau Freshwater
Facility
This facility is surplus to NZ King Salmon’s requirements with annual running costs of
~$900k p.a. Progress to mothball the site in 2HY23 is on track.
Reduction of net capital
expenditure (FY23)
Reduce FY23 capital expenditure to $6.5m - $7.5m. NZKS current YTD 31 July
expenditure is $4.5m.
Review of expenditure
Cost saving initiatives have been put in place across the business including
reprioritising and challenging existing spend.
Key
Completed
On Track
Behind

1HY23 HALF YEAR RESULTS
MARKET GUIDANCE – FY23
17
Remain on track to deliver pro forma EBITDA guidance of a loss of $8m to $12m
In confirming guidance NZ King Salmon notes:
•Mortalities continue to improve post the summer months, but have tracked above plan for the first half of FY23.
•This has been offset by price increases successfullyimplemented across all markets, optimising customer and product mix in addition to cost savings targeted across
all departments.The guidance assumes no significant unplanned increase in mortalities.
•Inflationary pressure is occurring across our cost base (including the cost of feed). Guidance assumes no further significantinflationary pressure beyond that currently
forecast.
•In the production model for FY23 we have ~400 tonnes of “seasonal fish” coming from Ruakaka. As we will not be taking these fishthrough the summer they will be
harvested at smaller than our average size.There is a risk around the size of the fish, in that pricing is not certain. In future years it is intended the seasonal volume
will come from Waitata, and due to increasedentry size and/or entry timing these will be larger than this year's seasonal fish.

1HY23 HALF YEAR RESULTS
BLUE ENDEAVOUR UPDATE
18
•Consent outcome is due by the end of the year
•Blue Endeavour remains an important medium-term
project to deliver growth to NZ King Salmon
•Blue Endeavour would allow the utilisation of Pelorus
licenses as nursery sites and harvest locations
•Work continues on refining the production plan and
infrastructure
•FY27 is the earliest possible Blue Endeavour harvest
•Blue Endeavour has the potential to add 10,000MT of
harvest volume in conjunction with our nursery sites
•Full capacity of existing sites plus Blue Endeavour is
~16,500MT

1HY23 HALF YEAR RESULTS
19
APPENDICES
04

1HY23 HALF YEAR RESULTS
EXISTING SEA FARM RESOURCE CONSENTS AND EXPIRY
FarmsRegionExpiry dateStatus
RuakakaQueen Charlotte2024Active
OtanerauQueen Charlotte2024
Active
Forsyth BayPelorus2024
Harvest finished
Aug – then fallow
WaihinauPelorus2024Fallow
Crail Bay x 2Pelorus2024
1 Fallow, 1
seaweed trial
Clay PointTory Channel2036
Active
Te PanguTory Channel2036
Active
WaitataPelorus2049
Active
NgamahauTory Channel2049
Active
KopauaPelorus2049Fallow
20
•Five licenses are due for expiry or renewal at the end of 2024, all of which represent warmer, low
flow licenses at lower producing sites
•Crail Bay has not been farmed for around 10 years and is currently being used for a seaweed
trial
•Kōpaua, Forsyth andWaihinauare fallowed or scheduled to be fallowed for the next few years
butmay form part of the Blue Endeavour model as nursery or harvestlocations
•Ruakaka and Otanerau form part of the updated production plan, receiving fish post summer
viatow operations from the Tory Channel farms
•By 2024 there will be new planning provisions inplace (at least in draft form)
–Thepanel hearing submissions on current proposals has signalled that it is open to inviting
iwi, the Governmentand the wider community to work on new provisions to enable alignment
with the NZ Aquaculture Strategy.NZ King Salmon is involved in these discussions
•Renewingthe 2024 farms will require applications to be lodged, however it is logical to make
progress on the planning provisions before lodging these applications
•Applications would therefore be lodged in 2024 with preparatory work, including consultation with
Iwi, being undertaken beforehand
•Opportunities may arise for consenting via alternative processesin meantime
•Farms will be able to operate on their current consents until all applications and appeals have
been resolved

1HY23 HALF YEAR RESULTS
1HY23 RECONCILIATION BETWEEN GAAP RESULTS AND PRO FORMA
FINANCIALS
21
Statutory Financial
Statements
Fair Value
Adjustments
IFRS 16 Lease
Adjustments
Early FX Close-
outs
Pro Forma
Operating Financial
Information
Revenue
80,03380,033
Cost of goods sold(89,921)21,533
(977)(69,364)
13,222(13,222) -
Freight costs to market(11,379)(11,379)
G r o ss P r o fi t(8,045)
8,311(977)(710)
Other operating income3,312(3,023)289
Overheads
Sales, marketing and advertising(6,324)(6,324)
Distribution overheads(1,818)(1,818)
Corporate expenses
(5,109)(5,109)
Other expenses -
-
(17,984)
8,311(977)(3,023)(13,672)
Depreciation and amortisation(4,359)1,392(2,967)
(22,343)8,311415(3,023)(16,639)
Finance income
116116
Finance costs(1,276)
114(1,162)
Net finance costs(1,161) - 114
(1,047)
Profit / (loss) be fore Ta x(23,503)8,311529
(3,023)(17,685)
Income tax (expense) / credit(984)(2,327)(148)(3,459)
Ne t Profit / (loss)
(24,487)5,984381(3,023)(21,144)
1HY23
NZD 000s
Fair value gain / (loss) on biological transformation
EBITDA
EBIT

1HY23 HALF YEAR RESULTS
1HY22 RECONCILIATION BETWEEN GAAP RESULTS AND PRO FORMA
FINANCIALS
22
Statutory Financial
Statements
Fair Value
Adjustments
IFRS 16 Lease
Adjustments
Early FX Close-
outs
Pro Forma
Operating Financial
Information
Revenue80,09580,095
Cost of goods sold(86,621)22,582(980)(65,019)
30,692(30,692) -
Freight costs to market(11,286)(11,286)
G r o ss P r o fi t12,880(8,110)(980)3,790
Other operating income32713,49513,822
Overheads
Sales, marketing and advertising(6,480)(6,480)
Distribution overheads(2,800)(2,800)
Corporate expenses(4,939)(4,939)
Other expenses(102)(102)
(1,114)(8,110)(980)13,4953,290
Depreciation and amortisation(5,170)850(4,319)
(6,284)(8,110)(129)13,495(1,029)
Finance income1616
Finance costs(1,186)128(1,058)
Net finance costs(1,170) - 128(1,042)
Profit / (loss) be fore Ta x(7,454)(8,110)(1)13,495(2,071)
Income tax (expense) / credit1,8582,27104,129
Ne t Profit / (loss)(5,596)(5,839)(1)13,4952,058
EBIT
1HY22
NZD 000s
Fair value gain / (loss) on biological transformation
EBITDA

1HY23 HALF YEAR RESULTS
UNDERSTANDING OUR GAAP RESULTS
The impact of NZ IAS-41 Agriculture, NZ IAS-2 Inventory and NZ IFRS-16 Leases
Our GAAP results are impacted by Fair Value gains or losses arising from the application of NZ IAS-41 Agriculture, NZ IAS-2 Inventory and the classification of leases under NZ
IFRS-16. The impact of these standards are explained below:
Fair Value under NZ IAS-41 Agriculture andNZ IAS-2 Inventory
When we record a change in biomass at sea, or where the expected future profit we realise on fish that we sell changes, thesestandards require us to quantify and recognise the
gain or loss in the current period. This applies to both biomass at sea and inventories of finished products.
Our Statement of Financial Position shows biological assets at their fair value. Pro Forma Operating Financial Performance removes gains / losses associated with the application of these
standards. The company will present Pro Forma results for future reporting periods on this basis.
NZ IFRS-16Leases
Under NZ IFRS-16 a lessee will no longer make a distinction between finance leases and operating leases; all (material) leases will be treatedasfinance leases.
In the statement of financial position we are therefore required to recognize the asset (or right to use the asset) and the liability for the lease, while in the statement of profit and loss we recognize
the interest cost and the depreciation of the leased asset instead of the operating lease expenses. The application of this standard increases EBITDA, assets and liabilities, however this impact is
reversed in our Pro Forma results.
23

1HY23 HALF YEAR RESULTS
APPENDIX – GLOSSARY OF TERMS
1HY23Financial results for the 6 months from 1 February 2022 to 31 July 2022
2HY23Financial results for the 6 months from 1 August 2022 to 31 January 2023
FY23Financial results for the 12 months from 1 February 2022 to 31 January 2023
FY22Financial results for the 12 months from 1 February 2021 to 31 January 2022
EBITDAEarnings before interest, tax, depreciation and amortisation
FCRFeed Conversion Ratio – the amount of feed (in kilograms) required to grow 1 kilogram of fish weight
G&GGilled and gutted. Note that all volumetric information presented is on a gilled and gutted basis unless otherwise stated
GWGreenweight
GAAPGenerally Accepted Accounting Practice
Mortality / Mortality RateThe percentage mortality of salmon in seawater, calculatedas the biomass of salmon mortalities in kg divided by the growth of salmon in kg
MTMetric tonnes
NPATNet profit after tax, also reported as net profit for the period in our published financial results
NZKSNew Zealand King Salmon
Pro Forma Operating EBITDA
Pro Forma Operating EBITDA refers to earnings before interest, tax, depreciation, amortisation after allowing for pro forma adjustments as described in the
Appendix to thisdocument. Pro Forma Operating EBITDA is a non-GAAP profit measure
24

---

1HY23
NEW ZEALAND KING SALMON INVESTMENTS LIMITED AND
SUBSIDIARIES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
1

CONTENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
Page
Corporate directory
3
Interim consolidated statement of comprehensive income
4
Interim consolidated statement of financial position
5
Interim consolidated statement of changes in equity
6
Interim consolidated statement of cash flows
7
Notes to the interim consolidated financial statements
8 - 14
2

NEW ZEALAND KING SALMON INVESTMENTS LIMITED AND SUBSIDIARIES
CORPORATE DIRECTORY
BOARD OF DIRECTORSBANKERSNEW ZEALAND KING SALMON
John William Dudley Ryder The Bank of New ZealandINVESTMENTS LIMITED
Independent Non-Executive ChairmanDeloitte CentreTicker: NZK
Jack Lee PorusLevel 6, 80 Queen StreetListed on the NZX Main Board and
Non-Executive DirectorAucklandas a foreign Exempt Listing on the
Paul James SteereNew ZealandASX
Independent Non-Executive DirectorNZ Company number: 2161790
Chiong Yong Tiong
AUDITOR
Non-Executive DirectorErnst & Young (EY)Registered Office
Catriona MacleodLevel 4, 93 Cambridge Terrace93 Beatty Street
Independent Non-Executive DirectorChristchurch Annesbrook
Carol ChenNew ZealandNelson
Non-Executive DirectorNew Zealand
Victoria TaylorLAWYERS
Independent Non-Executive DirectorChapman TrippPostal Address
Level 34PO Box 1180 Nelson 7040
Audit and Finance Committee15 Customs StreetNew Zealand
Paul Steere (Chair)Auckland
John RyderNew ZealandTelephone
Jack Porus +64 3 548 5714
Gascoigne Wicks
Nominations and Remuneration Committee79 High StreetWebsite
Paul Steere (Chair - February 2022 - May 2022)Blenheimwww.kingsalmon.co.nz
Victoria Taylor (Chair - Appointed May 2022)New Zealand
Jack PorusInvestor Relations
Duncan Cotterillinvestor@kingsalmon.co.nz
Health, Safety and Risk Committee197 Bridge Street
Catriona Macleod (Chair)Nelson
Chiong Yong TiongNew ZealandSHARE REGISTRY
Computershare Investor
Fish Farming Review Committee (Est. May 2022)Services Limited
Jack Porus (Chair)Level 2, 159 Hurstmere Road
Catriona MacleodTakapuna
Auckland 0622
New Zealand
+64 9 488 8777
enquiry@computershare.co.nz
Computershare Investor
Services Pty Limited
Yarra Fall
452 Johnston Street
Abbotsford VIC 3001
Australia
+61 3 9415 4083
enquiry@computershare.co.nz
3

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 JULY 2022
UNAUDITEDUNAUDITED
31 July 202231 July 2021
Note$000$000
Revenue from contracts with customers480,033 80,095
Cost of goods sold including fair value uplift at point of harvest6(89,921) (86,621)
Fair value gain on biological transformation713,222 30,692
Freight costs to market(11,379) (11,286)
Gross profit
(8,045) 12,880
Other income3,312 327
Sales, marketing and advertising expenses(6,324) (6,480)
Distribution overheads(1,818) (2,800)
Corporate expenses(5,109) (4,939)
Other expenses- (102)
Earnings before interest, tax, depreciation and amortisation
(17,984) (1,114)
Depreciation and amortisation expense(4,359) (5,170)
Finance income116 16
Finance expenses(1,276) (1,186)
(Loss) / Profit before tax
(23,503) (7,454)
Income tax credit / (expense)(984) 1,858
(Loss) / Profit after tax(24,487) (5,596)
Other comprehensive income
Exchange differences on translation of foreign operations674 (82)
Movement on cash flow hedges(1,411) (3,601)
Income tax effect of movement on cash flow hedges
- 1,008
Net other comprehensive income/ (loss)
(736) (2,675)
Total comprehensive income / (loss)(25,223) (8,271)
UNAUDITEDUNAUDITED
Earnings per share31 July 202231 July 2021
Basic earnings per share
5
(0.05)$ (0.04)$
Diluted earnings per share
5
(0.05)$ (0.04)$
The above interim consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Other comprehensive income that may be reclassified to profit or loss in subsequent periods:
4

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2022
UNAUDITEDAUDITED
31 July 202231 January 2022
ASSETSNote$000$000
Current assets
Cash and cash equivalents19,8002,913
Trade and other receivables11,97719,817
Taxation receivable393294
Inventories629,23334,636
Biological assets747,61765,529
Derivative financial assets92,2831,338
Total current assets
111,303124,527
Non-current assets
Property, plant and equipment51,89050,620
Biological assets77,5689,432
Derivative financial assets94,9853,112
Intangible assets4,2503,893
Right-of-use assets4,7985,744
Goodwill- -
Total non-current assets
73,49172,801
TOTAL ASSETS
184,794197,328
LIABILITIES
Current liabilities
Trade and other payables14,84416,434
Employee benefits3,2982,831
Borrowings81,63649,659
Lease liabilities1,4031,531
Other financial liabilities12233233
Derivative financial liabilities95,4453,628
Taxation payable
-
301
Total current liabilities
26,85974,617
Non-current liabilities
Employee benefits435430
Borrowings83,500-
Lease liabilities4,1134,402
Deferred tax liabilities- -
Derivative financial liabilities98,6686,650
Total non-current liabilities
16,71611,482
TOTAL LIABILITIES
43,57586,099
NET ASSETS
141,219111,229
EQUITY
Share capital11180,143122,606
Reserves7,11410,175
Retained earnings(46,038) (21,552)
TOTAL EQUITY
141,219111,229
Net tangible assets per share
Net tangible assets per share0.25$
0.76$
DirectorDirector
27 September 202227 September 2022
The above interim consolidated statement of financial position should be read in conjunction with the accompanying
notes.
For and on behalf of the Board, who authorised the issue of these financial statements on 27 September
2022
5

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 JULY 2022
Share
Capital
Foreign
Currency
Translation
Reserve
Hedge
Reserve
Share Based
Payment
Reserve
Retained
Earnings
Total
Equity
UNAUDITED$000$000$000$000$000$000
Balance as at 1 February 2022
122,606(948) 10,0031,120(21,551) 111,229
Profit / (loss) for the period- - - (24,487) (24,487)
Other comprehensive income/(loss)- 674(1,411) - - (736)
Total comprehensive income/(loss) for the period
- 674(1,411) - (24,487) (25,223)
Issue of Share Capital (net of costs)57,537-
-
- - 57,537
Income recognised for the period net of tax
(2,170)
(2,170)
Share based payment expense- - - (153) - (153)
Balance as at 31 July 2022
180,143(274) 6,422967(46,038) 141,219
UNAUDITED
Balance as at 1 February 2021
122,606(1,162) 18,47497451,651192,543
Profit / (loss) for the period- - - - (5,596) (5,596)
Other comprehensive income/(loss)- (82) (2,593) - (2,675)
Total comprehensive income/(loss) for the period
- (82) (2,593) - (5,596) (8,271)
Dividends paid - ordinary- - - - - -
Share based payment expense- - - 65- 65
Balance as at 31 July 2021
122,606(1,244) 15,8811,03946,055184,337
The above interim consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
6

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 JULY 2022
UNAUDITEDUNAUDITED
31 July 202231 July 2021
$000$000
Operating activities
Receipts from customers85,959 80,385
Payments to suppliers(54,578) (59,303)
Payments to employees(20,809) (21,087)
Interest received116 16
Interest paid(1,037) (760)
Insurance and settlement income2 -
Government grants received162 285
Proceeds from foreign currency forward contracts closed early- 13,495
Income tax paid(533) (4,058)
Net cash flows (used in) / from operating activities
9,282 8,973
Investing activities
Proceeds from sale of property, plant and equipment13 8
Purchase of property, plant and equipment(4,560) (6,440)
Purchase of intangible assets(20) (747)
Net cash flow (used in) / from investing activities
(4,567) (7,179)
Financing activities
Proceeds from borrowings51,500 72,000
Repayment of borrowings(96,023) (73,516)
Gross proceeds from share issue57,536 -
Payment of lease liabilities(877) (852)
Net cash flows (used in) / from financing activities
12,136 (2,368)
Net increase / (decrease) in cash and cash equivalents
16,851 (574)
Net foreign exchange difference
36 22
Cash and cash equivalents at 1 February
2,913 3,479
Cash and cash equivalents at 31 July
19,800 2,927
The above interim consolidated statement of cash flows should be read in conjunction with the accompanying notes.
7

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
1.CORPORATE INFORMATION
2.BASIS OF PREPARATION
Going Concern
3.
NEW STANDARDS,INTERPRETATIONS, AND AMENDMENTS ADOPTED BY THE GROUP
The Group's business is seasonal with higher sales in the summer months and higher mortality rates are typically highest in the
January to April period due to higher water temperatures at that time. This impacts on month to month profitability.
The condensed interim consolidated financial statements of New Zealand King Salmon Investments Limited (the Company) and its
subsidiaries (together the Group) for the six months ended 31 July 2022 were authorised for issue by the Directors on 27
September 2022.
New Zealand King Salmon Investments Limited is a profit-orientated company incorporated and domiciled in New Zealand. The
Company is registered under the Companies Act 1993 and listed on the NZX Main Board ("NZX") and the Australian Securities
Exchange ("ASX"). The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013. The Group is
principally engaged in the farming, processing and sale of premium salmon products.
The condensed interim consolidated financial statements have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (NZ GAAP) as appropriate for interim financial statements. They have been prepared in accordance with
NZ IAS 34 Interim Financial Reporting.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual
financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 January
2022.
The accounting policies adopted in the interim condensed financial statements are consistent with those applied in the annual
financial statements as at 31 January 2022. Management have applied the same principles and used the same key sources of
estimation in the preparation of the interim financial statements as those applied in the consolidated financial statements for the
period ended 31 January 2022. The Group has not early adopted any standard, interpretation or amendment that has been issued
but is not yet effective.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors
consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a
judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the
foreseeable future, and not less than 12 months from the end of the reporting period.
While uncertainties continue to exist as a result of the COVID-19 impact, the Directors consider that the Group is a going concern.
8

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
4.SEGMENT INFORMATION
Segment results
UNAUDITED
UNAUDITED
31 July 2022
31 July 2021
$000$000
Revenue80,03380,095
Segment EBITDA(17,984) (1,114)
UNAUDITEDUNAUDITED
Segment EBITDA reconciles to profit / (loss) before income tax as follows:
31 July 2022
31 July 2021
$000$000
Segment EBITDA(17,984) (1,114)
Depreciation, amortisation and impairment(4,359)
(5,170)
Net finance costs(1,161) (1,170)
Group profit / (loss) before tax(23,503) (7,454)
5.EARNINGS PER SHARE
UNAUDITEDUNAUDITED
31 July 202231 July 2021
Earnings per share$000$000
Profit / (loss) attributable to ordinary equity holders (24,487) (5,596)
# of Shares# of Shares
000000
Weighted average number of ordinary shares for diluted earnings per share541,455138,986
Basic earnings per share(0.05)$
(0.04)$
Diluted earnings per share(0.05)$ (0.04)$
6.INVENTORIES
UNAUDITEDAUDITED
31 July 202231 January 2022
Inventories$000$000
Raw materials8,58510,509
Work in progress1,7161,705
Finished goods18,93222,422
Total inventories29,23334,636
UNAUDITEDUNAUDITED
31 July 202231 July 2021
Amount of inventories recognised as an expense in the statement of comprehensive income$000$000
Cost of inventories recognised as an expense91,243 87,590
Movement in net realisable value provision(1,322)
(969)
Total cost of goods sold including fair value uplift at point of harvest89,921 86,621
7.BIOLOGICAL ASSETS
UNAUDITED
Cost Fair valueTotal
Biological assets$000$000$000
As at 1 February 2022
50,57524,38674,961
Increase due to biological transformation
1
35,47611,72547,201
Decrease due to harvest
2
(25,833) (20,385) (46,218)
Decrease due to mortality
3
(22,258) - (22,258)
Changes in fair value
4
- 1,4981,498
As at 31 July 2022
37,96017,22555,185
Segment performance
The Group's strategy is to maximise longer term sales and overall margins by focusing on branded, premium priced and differentiated sales across its range of
markets, channels and customers. The operating results of the whole business are monitored for the purpose of making decisions about resource allocating and
performance. Accordingly, the Group is considered to consist of one operating segment.
Basic earnings per share amounts are calculated by dividing the profit for the year attributable to shareholders of the Company by the weighted average number of
ordinary shares on issue during the year. Diluted earnings per share assumes conversion of all potential ordinary shares in determining the weighted average number
of ordinary shares on issue.
The cost of inventories recognised as an expense for the period ended 31 July 2022 includes a fair value uplift at point of harvest of $23,240k (31 July 2021:
$23,348k).This cost is included in cost of goods sold in the Statement of Comprehensive Income.
The Group has three hatcheries in the South Island and seven operational marine salmon farms in the Marlborough Sounds. The fish livestock typically grow for up to
31 months before harvest.
9

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
BIOLOGICAL ASSETS (CONTINUED)
UNAUDITED
Cost Fair valueTotal
Biological assets$000$000
$000
As at 1 February 202155,02533,16388,188
Increase due to biological transformation
1
42,18925,94768,136
Decrease due to harvest
2
(33,849) (23,280) (57,129)
Decrease due to mortality
3
(10,387) - (10,387)
Changes in fair value
4
- 4,7454,745
As at 31 July 2021
52,97840,57593,553
AUDITED
Cost Fair valueTotal
Biological assets$000$000
$000
As at 1 February 202155,02533,16388,188
Increase due to biological transformation
1
83,31133,876117,188
Decrease due to harvest
2
(66,920) (50,038) (116,958)
Decrease due to mortality
3
(20,841) - (20,841)
Changes in fair value
4
- 7,385 7,385
As at 31 January 2022
50,575 24,386
74,961
1
Biological transformation fair value is impacted by volume increases (net of mortalities) and fish size at reporting date relative to the target harvest weight of 4 kgs (proportional recognition).
2
Harvested fair value is included under cost of goods sold in the statement of comprehensive income and is calculated by multiplying the current years harvest (biomass) by the prior
years expected gross margin per kg (recognised at 100%).
3
Mortality cost is expensed directly to the statement of comprehensive income in the period which it occurs.
4
Changes in fair value are impacted by movements in margin primarily being changes in sales price and costs to sell (fish cost, harvest, processing and freight to market).
UNAUDITEDUNAUDITED
31 July 202231 July 2021
Fair value gain / (loss) recognised in profit and loss$000$000
Gain arising from growth of biological assets11,72525,947
Movement in fair value of biological assets1,4984,745
Total fair value gain on biological transformation13,222
30,692
UNAUDITEDUNAUDITED
31 July 202231 July 2021
Harvested biomasstonnestonnes
Total live weight harvested for the period 3,1523,903
UNAUDITEDAUDITED
31 July 202231 January 2022
Estimated closing biomasstonnestonnes
Closing fresh water stocks136138
Closing seawater stocks3,6556,335
Total estimated closing biomass live weight 3,7916,473
Fair value measurement
Fair value risk and sensitivity
The estimated unrealised fair value gain from cost of $13.2m as at 31 July 2022 has decreased from the prior period end ($30.7m at 31 July 2021) estimation due to
reduced sales volumes as a result of high summer mortalities and smaller fish size. Price increases have been implemented which help offset the increased cost of
production due to lower throughput. Changes in these assumptions will impact the fair value calculation. The realised profit which is achieved on the sale of inventory
will differ from the calculations of fair value of biological assets because of changes in key factors such as the final market destinations and product mix of inventory
sold, changes in price, foreign exchange rates, harvest weight, growth rates, mortality, cost levels and differences in harvested fish quality.
Leaving all other variables constant a 15% increase/decrease in average future sales prices would have increased/decreased the fair value of biological assets on
hand and profit before tax by $11.1m (31 January 2022: 15% increase / decrease $13.2m) (excludes the impact of finished goods), while a 15% increase/decrease in
estimated future harvest volume would increase/decrease the fair value of biological assets on hand and profit before tax by $2.3m (31 January 2022: 15% increase /
decrease $3.3m).
Measurement of fair value is performed using a fair value model. The method of valuation therefore falls into level 3 of the fair value hierarchy as the inputs are
unobservable inputs.
A 15% increase/decrease in estimated costs to sell would decrease/increase the fair value of biological assets on hand at balance date and profit before tax by $8.6m
(31 January 2022: 15% increase / decrease $9.7m). Changes in fish health and environmental factors may affect the quality of harvested fish, which may be reflected
in realised profit via both achieved sales price and production costs.
The Group is exposed to risks relating to the production of salmon stock including increasing climate change volatility, climatic events, disease and contamination of
water space.
The valuation of biological assets is carried out separately for each site at a brood and strategy level. Estimated actual cost up to the date of harvest per site is used
to measure the expected margin at the time the fish is defined as ready for harvest, being 4.0kg live weight. Selling price is estimated at balance date based on the
most relevant future market price at expected harvest date. The expected gross margin is recognised proportionately based on average biomass at reporting date.
Fair value measurement commences at the date of transfer to sea water as this is considered the point at which the fish commence their grow out cycle.
The Group seeks to produce and market the highest quality salmon products. Extensive monitoring and benchmarking is carried out to provide optimum conditions
and diets to maximise fish performance during the grow out cycle. Sales are maintained in a range of brands, products and markets to maximise returns from the
quality mix of fish harvested. The Group has insurance to cover some of the risks relating to the livestock.
10

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
8.INTEREST BEARING LOANS AND BORROWINGS
UNAUDITEDAUDITED
31 July 202231 January 2022
Current interest bearing loans and borrowings$000
$000
Secured bank loans75047,000
Other borrowings8862,659
Total current interest bearing loans and borrowings
1,636
49,659
31 July 202231 January 2022
Non-current interest bearing loans and borrowings$000$000
Secured bank loans3,500
-
Other borrowings- -
Total current interest bearing loans and borrowings
3,500-
9.FAIR VALUE OF FINANCIAL INSTRUMENTS
The following financial instruments of the Group are carried at fair value:UNAUDITEDAUDITED
31 July 202231 January 2022
Current derivative financial assets$000$000
Forward exchange contracts1,8261,028
Foreign exchange options457310
Total Current derivative financial assets2,2831,338
Non-current derivative financial assets
Forward exchange contracts1,4191,043
Foreign exchange options3,5662,069
Total Non-current derivative financial assets4,9853,112
Current derivative financial liabilities
Forward exchange contracts4,6842,772
Foreign exchange options761308
Interest rate swaps- 548
Total Current derivative financial liabilities5,4453,628
Non-current derivative financial liabilities
Forward exchange contracts2,1292,618
Foreign exchange options6,5394,032
Total non-current derivative financial liabilities8,6686,650
Valuation methods
Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
The carrying value of cash and short term deposits, trade receivables, trade payables and other current liabilities is considered a reasonable approximation to their
fair value due to the short term maturities of these instruments.
The Company has a facility with BNZ for $6.5m (expiry 30 April 2024), secured by a general security over the assets of the Group. Nothing was drawn as at 31 July
2022. The company also secured a Business Finance Scheme Loan via BNZ for $5m (expiry October 2025) that arose from the Government providing financial
assistance following the pandemic virus Covid-19. At 31 July 2022 the balance drawn on the Business Finance Scheme was $4.25m.
Financial instruments have been categorised into the following hierarchy and valued according to the following definitions, based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from
prices)
All derivative financial instruments for which a fair value is recognised have been categorised within level 2 of the fair value hierarchy. Industry experts have provided
the fair values for all derivatives based on an industry standard model. There were no transfers between Level 1 and Level 2 during the period ended 31 July 2022
(31 July 2021 - nil).
11

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
10.COMMITMENTS AND CONTINGENCIES
UNAUDITED
Capital commitments
Contingencies
Guarantees
11.CAPITAL AND RESERVES
UNAUDITEDAUDITED
Share capital
31 July 202231 January 2022
Issued shares000000
Ordinary shares541,455 140,638
Total issued shares
541,455 140,638
UNAUDITEDAUDITEDUNAUDITEDAUDITED
31 July 202231 January 202231 July 202231 July 2021
Movement in ordinary share capital000000$000$000
As at 1 February or 1 July140,638 138,986
122,606122,606
Share issue400,817 - 57,537
-
Share issue for employee share scheme- 1,652 - -
Share issue recognised on repayment of employee loans- -
- -
As at 31 July or 31 January
541,455 140,638180,143122,606
Reserves
Foreign currency translation reserve
Hedge reserve
Retained earnings
Share based payment reserve
The Group has a contingent liability at 31 July 2022 of $1,121k in respect of a fish transport contract requiring the Group to purchase four bulk tankers (one tanker
purchased late 2021), should the fish transport contract be terminated early (31 July 2021: $772k).
Retained earnings represents the profits retained in the business.
The foreign currency translation reserve is used to record exchange difference arising from the translation of the financial statements of the foreign subsidiary.
The group has three guarantee facilities at 31 July 2022 totalling $132k (31 July 2022: $132k).
Ordinary shares are fully paid with no par value. Each ordinary share has an equal right to vote, to participate in dividends and to share in any surplus on winding up
of the Company. No dividend was declared nor paid during the 6 months to 31 July 2022 (6 months to 31 July 2021: No dividend was declared or paid).
On the 12th May 2022, 400,817,007 ordinary shares were issued under an underwritten rights offer announced on the 13th April 2022 for total proceeds of $60.1m.
Total transaction costs for shares issued under the underwritten rights offer was $2.6m for net proceeds of $57.5m.
The Group has entered into agreements to purchase plant and equipment. As at 31 July 2022 the total commitment is $945k (31 July 2021: $4,202k).
The share based payment reserve relates to one long term incentive (LTI) scheme and two employee share ownership schemes. All of these schemes involve the
Company making interest-free limited recourse loans to selected personnel to acquire shares in the Company. The employees must remain in employment for the
duration of the vesting or escrow periods before the employees receive the full benefit of share ownership subsequent to repayment of the loan balance remaining at
time of vesting.
The hedge reserve represents the unrealised gains and losses on interest rate swaps and foreign currency forward contracts that the Group has taken out in order to
mitigate interest rate and foreign currency risks, net of deferred tax.
Share Capital# of Shares
12

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
12.RELATED PARTY DISCLOSURES
Subsidiaries
New Zealand King Salmon Investments Limited has the following trading subsidiaries.
SubsidiaryCountry of Incorporation
The New Zealand King Salmon Co. LimitedNew Zealand
100%
New Zealand King Salmon Exports LimitedNew Zealand100%
The New Zealand King Salmon Pty LimitedAustralia100%
New Zealand King Salmon USA IncorporatedUnited States of America
100%
Transactions with related parties

UNAUDITEDUNAUDITED
31 July 202231 July 2021
Related party payments$000$000
Goods and services purchased from other related parties205186
Total related party payments
205186
Sales related parties are made in arm's length transactions, both at normal market prices and on normal commercial terms.
UNAUDITEDAUDITED
Amounts owing to related parties
31 July 202231 January 2022
Current amounts owing to related parties$000$000
Other amounts owing to related parties(233) (233)
Total current amounts owing to related parties
(233) (233)
Sales to and purchases from related parties are made in arm's length transactions both at normal market prices and on normal commercial terms. The following
provides the total amount of transactions that were entered into with related parties for the relevant financial year:
The principal activity of The New Zealand King Salmon Co. Ltd is the farming and processing of salmon. The activity of New Zealand King Salmon Exports Limited,
The New Zealand King Salmon Pty Limited, and New Zealand King Salmon USA Incorporated is the distribution of salmon.
Equity Interest
13

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2022
13.DISAGGREGATION OF REVENUE
UNAUDITEDUNAUDITED
31 July 202231 July 2021
Revenue by Product Group$000$000
Whole Fish
36,90740,055
Fillets, Steaks & Portions
18,67717,142
Wood Roasted
5,7026,245
Cold Smoked
11,58812,013
Other
7,1584,640
Total
80,03380,095
UNAUDITEDUNAUDITED
31 July 202231 July 2021
Revenue by Brand
$000$000
Ōra King28,40326,989
Regal15,45815,127
Southern Ocean
3,3644,479
Omega Plus2,7411,177
New Zealand King Salmon30,06732,323
Total
80,033 80,095
UNAUDITEDUNAUDITED
31 July 2022
31 July 2021
Revenue by Market$000$000
New Zealand32,24933,294
North America30,07829,778
Australia6,8725,076
Japan3,1096,032
Europe3,7052,543
Other4,0193,372
Total revenue
80,03380,095
14.EVENTS AFTER BALANCE DATE
Dividend
No final dividend was declared in respect of the 6 months ended 31 July 2022 (6 month period to 31 July 2021: Nil).
Sales net of settlement discounts to one major customer for the period 1 February 2022 to 31 July 2022 totalled $9.9m, 11.9% of total gross revenue (For six months
to 31 July 2021 one major customer totalled $8.2m or 10.3% of total gross revenue).
14

---

Results announcement
(for Equity Security issuer)



Results for announcement to the market
Name of issuer New Zealand King Salmon Investments Limited
Reporting Period 6 months to 31 July 2022
Previous Reporting Period 6 months to 31 July 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$80,033 (0.08%)
Total Revenue $80,033 (0.08%)
Net profit/(loss) from
continuing operations
($24,487) (338%)
Total net profit/(loss) ($24,487) (338%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$ nil
Imputed amount per Quoted
Equity Security
$ nil
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.25 $0.98
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
No interim dividend was declared in respect of the 6 months
ended 31 July 2022.
Authority for this announcement
Name of person

authorised
to make this announcement
Ben Rodgers
Contact person for this
announcement
Ben Rodgers
Contact phone number +64 027 527 5636
Contact email address Ben.rodgers@kingsalmon.co.nz
Date of release through MAP

28
th
September 2022

Unaudited financial statements accompany this announcement.