NZK 1HY24 Half Year Results

Market Announcement
21 September 2023
NZK - NEW ZEALAND KING SALMON INVESTMENTS LIMITED ANNOUNCES 1HY24 RESULT

POSITIVE PROGRESS
New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for
the six-month period ended 31 July 2023 (1HY24). Key points include:

• 1HY24 net profit for the year of $10.6 million, compared to a net loss of $24.5
million in 1HY23.
• 1HY24 pro-forma EBITDA of $10.7 million, compared to an EBITDA loss of $12.7
1
million
in 1HY23.
• Sales volumes increased from 2,885MT in 1HY23 to 3,024MT in 1HY24 (an increase
of 5%).
• Revenues increased from $80.0 million in 1HY23 to $91.6 million in 1HY24 (an increase
of 14%).
• The mortality cost decreased from $22.3 million in 1HY23 to $7.8m in 1HY24.
• Earnings guidance range of pro-forma EBITDA has been revised up to $23.5m -
$27.5m (Original guidance range of $21m - $25m provided to market in March
2023).
1
1HY23 numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as
previously communicated.


New Zealand King Salmon Chairman Mark Dewdney noted : “The first half result has seen a
continuation of our turnaround which started in FY23. Our new farming strategies have resulted in
reductions in mortality, with mortality reducing from $22.3m to $7.8m, when compared to the prior
comparable period. This, combined with a focus on operational excellence across our processing and
sales operations has resulted in a strong result for the first half of FY24.

I would like to recognise the leadership of Graeme Tregidga who as acting Chief Executive led the
company extremely well through a challenging set of circumstances. The Board wanted to
acknowledge the way Graeme navigated NZKS through a period of immense change and delivered a
strong set of results. We are pleased to be retaining Graeme’s talents and corporate knowledge in
the business as he returns to the GM of Sales role.

It is an exciting time for the company; with performance improving, the appointment of a new Chief
Executive Officer, Carl Carrington, and the successful completion of the Blue Endeavour resource
consent application mediation. Carl has joined at an exciting time and the Board is looking forward to
working with Carl and the whole NZKS team to continue to strengthen the resilience of and optimise the
existing business, while continuing to develop growth options as part of a strategic and operational reset”.

Carl said: “As a business real progress has been made in the past 12 months. We have a truly world-
class product and there remains a lot of opportunity within both the existing business and future
growth options. Reflecting on his first couple of months in the role Carl noted “I want to thank our
many stakeholders who support what we do, i t’s a pleasing set of results and we acknowledge we
have more work to do”.

The Board is providing a revised pro-forma EBITDA guidance in a range of $23.5m - $27.5m from $21m -
$25m for FY24.

Authorised by:
Board of Directors of New Zealand King Salmon Investments Limited


For investor or analyst queries, please contact:
Carl Carrington, CEO, New Zealand King Salmon Investments Ltd,
carl.carrington@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

---

NZK
Results announcement
31 July 2023


Results for announcement to the market
Name of issuer New Zealand King Salmon Investments Limited
Reporting Period 6 months to 31 July 2023
Previous Reporting Period 6 months to 31 July 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$91,561 14%
Total Revenue $91,561 14%
Net profit/(loss) from
continuing operations
$10,630 <>%
Total net profit/(loss) $10,630 <>%
Interim Dividend
Amount per Quoted Equity
Security
Nil - Dividends remain on hold as NZK develops production
growth options
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.32 $0.25
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Increase net tangible assets reflects the recovery of the
business (including biological asset values) following the
mortality event which impacted FY22 and FY23 results.
Authority for this announcement
Name of person

authorised
to make this announcement
Ben Rodgers
Contact person for this
announcement
Ben Rodgers
Contact phone number 03 548 5714
Contact email address Ben.rodgers@kingsalmon.co.nz
Date of release through MAP

21/09/2023

Unaudited financial statements accompany this announcement.

---

NEW ZEALAND KING SALMON INVESTMENTS LIMITED AND
SUBSIDIARIES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2023
1HY24

CONTENTS
FOR THE SIX MONTHS ENDED 31 JULY 2023
Page
Corporate directory3
Interim consolidated statement of comprehensive income 4
Interim consolidated statement of financial position5
Interim consolidated statement of changes in equity6
Interim consolidated statement of cash flows7
Notes to the interim consolidated financial statements
8
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
(Resigned 14 June 2023)Level 6, 80 Queen StreetListed on the NZX Main Board and
Mark DewdneyAucklandas a Foreign Exempt Listing on the
Independent Non-Executive ChairmanNew ZealandASX
(Appointed 14 June 2023)NZ Company number: 2161790
Jack Lee PorusKiwibank
Non-Executive DirectorLevel 9, 20 Customhouse QuayRegistered Office
Paul James SteereWellington17 Bullen Street
Independent Non-Executive DirectorNew ZealandTahunanui
Chiong Yong TiongNelson 7011
Non-Executive DirectorAUDITORNew Zealand
Catriona MacleodErnst & Young (EY)
Independent Non-Executive DirectorLevel 4, 93 Cambridge TerracePostal Address
Carol ChenChristchurch PO Box 1180 Nelson 7040
Non-Executive DirectorNew ZealandNew Zealand
Victoria Taylor
Independent Non-Executive DirectorLAWYERSTelephone
Chapman Tripp+64 3 548 5714
Audit and Finance CommitteeLevel 34, 15 Customs Street West
Paul Steere (Chair)AucklandWebsite
Jack Porus New Zealand
www.kingsalmon.co.nz
Mark Dewdney (Appointed 14 June 2023)
John Ryder (resigned 14th June 2023)
Gascoigne WicksInvestor Relations
79 High Streetinvestor@kingsalmon.co.nz
Nominations and Remuneration CommitteeBlenheim
Victoria Taylor (Chair)New ZealandSHARE REGISTRY
Jack PorusComputershare Investor
Mark Dewdney (Appointed 14 June 2023)
Duncan CotterillServices Limited
197 Bridge StreetLevel 2, 159 Hurstmere Road
Health, Safety and Risk CommitteeNelsonTakapuna
Catriona Macleod (Chair)New ZealandAuckland 0622
Chiong Yong TiongNew Zealand
Mark Dewdney (Appointed 14 June 2023)
+64 9 488 8777
enquiry@computershare.co.nz
Fish Farming Review Committee
Jack Porus (Chair)Computershare Investor
Catriona MacleodServices Pty Limited
Mark Dewdney (Appointed 14 June 2023)
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 2023
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Note$000$000
Revenue from contracts with customers1491,561 80,033
Cost of goods sold including fair value uplift at point of harvest6(84,435) (89,921)
Fair value gain on biological transformation731,189 13,222
Freight costs to market(11,205) (11,379)
Gross profit
27,110 (8,046)
Other income3,974 3,312
Sales, marketing and advertising expenses(5,229) (6,324)
Distribution overheads(1,675) (1,818)
Corporate expenses(5,721) (5,109)
Other expenses-
Earnings before interest, tax, depreciation and amortisation
18,459 (17,985)
Depreciation and amortisation expense(3,852) (4,359)
Finance income457 116
Finance expenses(183) (1,276)
Profit / (Loss) before tax
14,881 (23,504)
Income tax credit / (expense)
(4,251) (984)
Profit / (Loss) after tax
10,630 (24,487)
Other comprehensive income
Exchange differences on translation of foreign operations175 674
Movement on cash flow hedges(2,687) (1,543)
Release of early closed out foreign exchange contracts
(3,551) (3,044)
Deferred tax on early closed out foreign exchange contracts
994 852
Income tax effect of movement on cash flow hedges
747 154
Net other comprehensive income/ (loss)(4,322) (2,907)
Total comprehensive income / (loss)
6,308 (27,394)
UNAUDITEDUNAUDITED
Earnings per share31 July 202331 July 2022
Basic earnings per share
4
0.02$ (0.05)$
Diluted earnings per share
4
0.02$ (0.05)$
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 2023
UNAUDITEDAUDITED
31 July 202331 January 2023
ASSETSNote$000$000
Current assets
Cash and cash equivalents28,66619,221
Trade and other receivables514,74016,573
Taxation receivable- 164
Inventories626,81729,729
Biological assets770,20660,348
Derivative financial assets101,4231,906
Total current assets
141,852127,941
Non-current assets
Property, plant and equipment46,94948,176
Biological assets710,30412,344
Derivative financial assets102,5554,106
Intangible assets3,3983,486
Right-of-use assets3,9074,316
Deferred tax asset- 919
Total non-current assets
67,11373,347
TOTAL ASSETS
208,965201,288
LIABILITIES
Current liabilities
Trade and other payables913,46813,662
Employee benefits3,3623,465
Borrowings8750750
Lease liabilities1,0071,191
Other financial liabilities13269278
Derivative financial liabilities104,0183,112
Taxation payable998-
Total current liabilities
23,87222,458
Non-current liabilities
Employee benefits480501
Borrowings82,7502,750
Lease liabilities3,1093,328
Deferred tax liabilities449-
Derivative financial liabilities104,0734,345
Total non-current liabilities
10,86110,924
TOTAL LIABILITIES
34,73333,382
NET ASSETS
174,232167,906
EQUITY
Share capital12180,143180,143
Reserves3,1197,423
Retained earnings(9,030) (19,660)
TOTAL EQUITY
174,232167,906
DirectorDirector
20 September 202320 September 2023
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 20 September 2023
5

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 JULY 2023
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 2023
180,143(614) 7,209828(19,660) 167,906
Profit / (loss) for the period- -
-
- 10,630
10,630
Other comprehensive income/(loss)- 175(4,497) - -
(4,322)
Total comprehensive income/(loss) for the period
- 175(4,497) - 10,6306,308
Share based payment expense- - - 18-
18
Balance as at 31 July 2023
180,143(439) 2,712846(9,030) 174,232
UNAUDITED
Balance as at 1 February 2022
122,606(948) 10,0031,120(21,551) 111,230
Profit / (loss) for the period- - - (24,487)
(24,487)
Other comprehensive income/(loss)- 674(3,581) - - (2,907)
Total comprehensive income/(loss) for the period
- 674(3,581) - (24,487) (27,394)
Issue of Share Capital (net of costs)57,537- - - -
57,537
Share based payment expense- - - (153) -
(153)
Balance as at 31 July 2022
180,143(274) 6,422967(46,038) 141,220
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 2023
UNAUDITEDUNAUDITED
31 July 202331 July 2022
$000$000
Operating activities
Receipts from customers92,282 85,959
Payments to suppliers(61,118) (54,578)
Payments to employees(19,849) (20,809)
Interest received457 116
Interest paid(126) (1,037)
Insurance and settlement income- 2
Government grants received99 162
Income tax paid/(received)23 (533)
Net cash flows (used in) / from operating activities
11,768 9,282
Investing activities
Proceeds from sale of property, plant and equipment17 13
Purchase of property, plant and equipment(1,573) (4,560)
Purchase of intangible assets(129) (20)
Net cash flow (used in) / from investing activities
(1,685) (4,567)
Financing activities
Proceeds from borrowings- 51,500
Repayment of borrowings- (96,023)
Gross proceeds from share issue- 57,536
Payment of lease liabilities(726) (877)
Net cash flows (used in) / from financing activities
(726) 12,136
Net increase / (decrease) in cash and cash equivalents
9,357 16,851
Net foreign exchange difference
88 36
Cash and cash equivalents at 1 February
19,221 2,913
Cash and cash equivalents at 31 July
28,666 19,800
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 2023
1.CORPORATE INFORMATION
2.BASIS OF PREPARATION
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 2023 were authorised for issue by the Directors on
20 September 2023.
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 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 2023.
The accounting policies adopted in the interim condensed financial statements are consistent with those applied in the annual
financial statements as at 31 January 2023. 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 2023. The Group has not early adopted any standard, interpretation or amendment that has been
issued but is not yet effective.
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 financial statements and the comparative information for
the six months ended 31 July 2022 are unaudited. The comparative information for the year ended 31 January 2023 are
audited.
8

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2023
4.EARNINGS PER SHARE
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Earnings per share
$000$000
Profit / (loss) attributable to ordinary equity holders 10,630(24,487)
# of Shares# of Shares
000000
Weighted average number of ordinary shares for diluted earnings per share541,455541,455
Basic earnings per share
0.02$ (0.05)$
Diluted earnings per share
0.02$ (0.05)$
5.TRADE AND OTHER RECEIVABLESUNAUDITEDAUDITED
31 July 202331 January 2023
Trade and other receivables$000$000
Trade receivables13,51213,492
Allowance for expected credit losses(446) (63)
Prepayments1,2012,518
Other receivables473626
Total trade and other receivables14,74016,573
6.INVENTORIES
UNAUDITEDAUDITED
31 July 202331 January 2023
Inventories
$000$000
Raw materials7,0706,419
Work in progress1,9661,554
Finished goods17,78121,756
Total inventories26,81729,729
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Amount of inventories recognised as an expense in the statement of comprehensive income
$000$000
Cost of inventories recognised as an expense86,148 91,243
Movement in net realisable value provision(1,713) (1,322)
Total cost of goods sold including fair value uplift at point of harvest84,435 89,921
7.
BIOLOGICAL ASSETS
UNAUDITED
Cost Fair valueTotal
Biological assets
$000$000$000
As at 1 February 2023
42,88129,81172,692
Increase due to biological transformation
1
41,86928,71970,588
Decrease due to harvest
2
(30,874) (26,561) (57,435)
Decrease due to mortality
3
(7,806) - (7,806)
Changes in fair value
4
- 2,4712,471
As at 31 July 2023
46,07034,44080,510
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
37,96017,22455,184
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 2023 includes a fair value uplift at point of harvest of $27,510k (31 July
2022: $23,240k).This cost is included in cost of goods sold in the Statement of Comprehensive Income.
The cost of inventory includes fish harvested at the fair value less cost to sell at harvest date, based on management’s expected future sales pricing and
mix of product (“deemed cost”). As at 31 July 2023 no volumes were forecasted to be sold at returns materially below deemed cost plus further
manufacturing costs. As a result, the overall deemed cost of inventory on hand takes this into account and therefore increases the carrying value by the
impact of the higher expected sales prices.
The Group has two hatcheries (31 July 2022: three hatcheries) in the South Island and six operational (31 July 2022: nine 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 2023
BIOLOGICAL ASSETS (CONTINUED)
AUDITED
Cost Fair valueTotal
Biological assets
$000$000
$000
As at 1 February 2022
50,57524,38674,961
Increase due to biological transformation
1
77,71242,967
120,679
Decrease due to harvest
2
(59,463) (44,203)
(103,666)
Decrease due to mortality
3
(25,943) - (25,943)
Changes in fair value
4
- 6,661 6,661
As at 31 January 2023
42,881 29,811 72,692
1
2
3
4
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Fair value gain / (loss) recognised in profit and loss
$000$000
Gain arising from growth of biological assets28,71911,724
Movement in fair value of biological assets2,4701,498
Total fair value gain on biological transformation31,189 13,222
UNAUDITEDAUDITED
31 July 202331 January 2023
Biological Assets
$000$000
Current70,20660,348
Non-current10,30412,344
Total Biological Assets80,51072,692
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Harvested biomass
tonnestonnes
Total live weight harvested for the period 3,401 3,152
UNAUDITEDAUDITED
31 July 202331 January 2023
Estimated closing biomass
tonnestonnes
Closing fresh water stocks111163
Closing seawater stocks4,6594,457
Total estimated closing biomass live weight 4,7704,620
Fair value measurement
Fair value risk and sensitivity
The estimated unrealised fair value gain from cost at 31 July 2023 has increased due to a decrease in forecasted mortalities and a consequential increase
in the forecasted harvest. Mortality assumptions made in the fair value model are in line with the FY24 forecast which sees the lower motalities
experienced at the end of FY23 continue into FY24. Average price increases are forecast due to continuing robust global demand for the product and rising
costs of inputs. 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 increase/decrease the fair value of biological assets on
hand and profit before tax by $16.6m (31 January 2023: $14.6m) (excludes the impact of finished goods), while a 15% increase/decrease in future harvest
volume would increase/decrease the fair value of biological assets on hand and profit before tax by $ 5.2m (31 January 2023: $2.2m).
Measurement of fair value is performed using a fair value model. The method of valuation therefore falls into level three of the fair value hierarchy as the
inputs are unobservable inputs.
A 15% increase/decrease in costs to sell would decrease/increase the fair value of biological assets on hand and profit before tax by $11.3m (31 January
2023: $13.6m). 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 financial 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.
Biological transformation fair value is impacted by volume increases and fish weight at reporting date relative to the target harvest weight of 4 kgs (proportional recognition).
Harvested fair value is included under cost of goods sold in the statement of comprehensive income and is calculated by multiplying the current period's harvest (biomass) by the prior years
expected gross margin per kg (recognised at 100%).
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).
Mortality cost is expensed directly to the statement of comprehensive income within the cost of goods sold in the period which it occurs and is not subject to a fair value uplift.
10

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2023
8.INTEREST BEARING LOANS AND BORROWINGS
UNAUDITEDAUDITED
31 July 202331 January 2023
Current interest bearing loans and borrowings
$000
$000
Secured bank loans
750750
Total current interest bearing loans and borrowings
750750
31 July 202331 January 2023
Non-current interest bearing loans and borrowings$000$000
Secured bank loans2,7502,750
Total current interest bearing loans and borrowings
2,7502,750
9.TRADE AND OTHER PAYABLES
UNAUDITEDAUDITED
31 July 202331 January 2023
$000$000
Trade payables11,99011,327
Other payables1,4782,335
Total trade and other payables
13,46813,662
10.FAIR VALUE OF FINANCIAL INSTRUMENTS
The following financial instruments of the Group are carried at fair value:
UNAUDITEDAUDITED
31 July 202331 January 2023
Current derivative financial assets$000$000
Forward exchange contracts9991,341
Foreign exchange options424565
Total Current derivative financial assets
1,4231,906
Non-current derivative financial assets
Forward exchange contracts802928
Foreign exchange options1,7533,178
Total Non-current derivative financial assets
2,5554,106
Current derivative financial liabilities
Forward exchange contracts2,1472,123
Foreign exchange options1,871989
Total Current derivative financial liabilities
4,0183,112
Non-current derivative financial liabilities
Forward exchange contracts872369
Foreign exchange options3,2013,976
Total Non-current derivative financial liabilities
4,0734,345
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 2023 and the facility was cancelled at the request of New Zealand King Salmon in August 2023.
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 2023 the balance drawn on the Business Finance Scheme was $3.5m.
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 2023 (31 July 2022 - nil).
11

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2023
11.COMMITMENTS AND CONTINGENCIES
UNAUDITED
Capital commitments
Contingencies
Guarantees
12.CAPITAL AND RESERVES
UNAUDITEDAUDITED
Share capital
31 July 202331 January 2023
Issued shares000000
Ordinary shares541,455 541,455
Total issued shares
541,455 541,455
UNAUDITEDAUDITEDUNAUDITEDAUDITED
31 July 202331 January 202331 July 202331 January 2023
Movement in ordinary share capital000000$000$000
The beginning of the period541,455 140,638 180,143122,606
Share issue- 400,817 - 57,537
Total Share capital as at period end
541,455 541,455180,143180,143
Reserves
Foreign currency translation reserve
Hedge reserve
UNAUDITEDAUDITED
31 July 202331 January 2023
$000$000
(1,940)
2,804
Total gain / (loss) on hedge reserves
(1,940) 2,804
Retained earnings
Share based payment reserve
Share Capital# of Shares
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 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. Also included are the realised gains on early closed foreign currency forward
contracts where the hedged future cash flows are still expected to occur (net of tax).
Unrealised gain / (loss)
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 2023 (6 months to 31 July 2022: No dividend was declared
or paid).
The Group has entered into agreements to purchase plant and equipment. As at 31 July 2023 the total commitment is $463k (31 July 2022: $945k).
The Group has a contingent liability at 31 July 2023 of $975k 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 2022: $1,121k).
The group has three guarantee facilities at 31 July 2023 totalling $132k (31 July 2022: $132k).
12

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2023
13.RELATED PARTY DISCLOSURES
Subsidiaries
New Zealand King Salmon Investments Limited has the following trading subsidiaries.
Subsidiary
Country of Incorporation
The New Zealand King Salmon Co. LimitedNew Zealand100%
New Zealand King Salmon Exports LimitedNew Zealand100%
The New Zealand King Salmon Pty LimitedAustralia100%
New Zealand King Salmon USA IncorporatedUnited States of America100%
Transactions with related parties

UNAUDITEDUNAUDITED
31 July 202331 July 2022
Related party payments$000$000
Goods and services purchased from other related parties- -
Directors fees241 205
Total related party payments
241 205
Related party sales$000$000
Goods sold to related parties
1
1,783-
Total related party sales
1,783-
UNAUDITEDAUDITED
Amounts owing to related parties
31 July 202331 January 2023
Current amounts owing to related parties$000$000
Other amounts owing to related parties233233
Fees payable to directors3645
Total current amounts owing to related parties
269278
1
14.DISAGGREGATION OF REVENUE
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Revenue by Product Group$000$000
Whole Fish46,44336,908
Fillets, Steaks & Portions21,77518,677
Wood Roasted3,1815,702
Cold Smoked12,58511,588
Other7,5777,158
Total
91,56180,033
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Revenue by Brand$000$000
Ōra King26,55328,403
Regal14,65015,458
Southern Ocean3,6623,364
Omega Plus1,8312,741
New Zealand King Salmon44,86530,067
Total
91,561 80,033
UNAUDITEDUNAUDITED
31 July 202331 July 2022
Revenue by Market$000$000
New Zealand31,131 32,249
North America37,540 30,079
Australia10,987 6,872
Japan2,747 3,109
Europe2,747 3,705
Other6,409 4,019
Total revenue
91,56180,033
15.EVENTS AFTER BALANCE DATE
Dividend
No final dividend was declared in respect of the 6 months ended 31 July 2023 (6 month period to 31 July 2022: Nil).
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 Limited 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
Sales net of settlement discounts to one major customer for the period 1 February 2023 to 31 July 2023 totalled $8.6m, 9.4% of total gross revenue (For
six months to 31 July 2022 one major customer totalled $9.9m or 12.4% of total gross revenue).
During the period NZKS recommenced salmon sales to China through Runkong Food Supply Chain (Guangdong) Co., Ltd., 40% owned by China
Resources Enterprise, Limited, who is a shareholder of NZKS. The sales were conducted on the same terms as an arm’s length transaction.
13

---

1HY24 INVESTOR PRESENTATION
1HY24 FINANCIAL RESULTS

1HY24 INVESTOR PRESENTATION
DISCLAIMER
1
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.

1HY24 INVESTOR PRESENTATION
PRESENTERS
2
Carl Carrington
Chief Executive Officer
Ben Rodgers
Chief Financial Officer
Graeme Tregidga
GM Sales

1HY24 INVESTOR PRESENTATION
EXECUTIVE SUMMARY
3
1HY24
•1HY24 Net profit after tax of $10.6m.The business is performing consistent with expectations following the changes made to the farming model in FY23 (fallowing
3 of 4 Pelorus sites).GAAP results positively impacted by a fair value uplift in assets of $4.1m (1HY23 loss of $8.3m) and continued unwind of early close out of
FX contracts in FY22 $3.6m (1HY23 $3m)
•1HY24 Pro-forma EBITDA profit of $10.7m (1HY23 loss of $12.7
1
m).Rolling 12 month EBITDA $21m
•Mortalityreduction consistent with expectations following changes to the farming model (1HY24 $7.8m v 1HY23 $22.3m).NZKS still see opportunities for further
improvement in this space
•Continuation of focus from FY23 with market choices (price and product optimisation) being successfully implemented in 1HY24,continuous focus on the cost
base and investments in resiliency
•Blue Endeavourmediation complete, consent expected to be issued in 2HY24.
1
1HY23 numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as previously communicated
Balance sheet
•Balance Sheet remains strong with net cash on hand $25.2m (up from $15.7m at 31 January2023)
•FY24 Capex is skewed to 2HY24, full year Capex forecast ~$10.5m (1HY24 Capex $1.7m).Projects are focussed on BAU asset replacements to increase
resiliency and reducing risk
Focus Areas
•Optimise and stabilise the existing operations, including investments in resilience to protect core earnings
•Develop production growth options (including Blue Endeavour)
FY24 guidance
update
•Pro-forma EBITDA guidance range revised up to $23.5m to $27.5mfrom previous guidance range of $21m to $25m
•FY24 expected harvest ~6,500 MT

1HY24 INVESTOR PRESENTATION1HY24 INVESTOR PRESENTATION
1HY24 OPERATIONAL HIGHLIGHTS
$92
1HY24
REVENUE OF
MILLION
2,993
METRIC TONNES
HARVESTED
DURING 1HY24
34%
GEOGRAPHIC SPREAD
OF REVENUE
3%
41%
12%
EUROPE
7%
3%
NORTH
AMERICA
ASIA EX JAPAN
JAPAN
NEW
ZEALAND
AUSTRALIA
4
21
-7
-6
-24
11
-30
-20
-10
-
10
20
30
1HY20 (Dec) FY21 (7
months -
Jan)
1HY22 (Jul) 1HY23 (Jul) 1HY24 (Jul)
1HY24 GAAP NPAT
17
11
4
-13
11
-15
-10
-5
0
5
10
15
20
1HY20
(Dec)
FY21 (7
months -
Jan)
1HY22 (Jul) 1HY23 (Jul) 1HY24 (Jul)
1HY23 PRO-FORMA OPERATING EBITDA
1
84
95
80
80
92
1HY20
(Dec)
FY21 (7
months -
Jan)
1HY22
(Jul)
1HY23
(Jul)
1HY24
(Jul)
1
comparable numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as
previously communicated

1HY24 INVESTOR PRESENTATION
1HY24 PERFORMANCE
01
5

1HY24 INVESTOR PRESENTATION
KEEPING OUR BRANDS PROMINENT
Creating innovative strategies for our markets:
Connecting with our end-users through:
•Focus on engagement with ŌraKing Ambassadors / key foodservice customers
•Global documentary screenings to tell our story creatively
•Focus to align A&P spend with sales growth and margin targets in each market
•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 refresh Omega Plus digital, social media and ambassador programmes to increase brand
presence in the NZ and China market
•Focus on activating new specialty strategy for Omega Plus with engaging events and social media
activity with key retailers e.g. Animates
6
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
•Regal Epicurean continues to drive engagement amongst the younger demographic and directly
contributing to our overall positive market share across the Regal range.

1HY24 INVESTOR PRESENTATION
OUR SUSTAINABILITY DEVELOPMENTS
•An industry wide NZ farmed King salmon Life Cycle Assessment was
completed in 2023 showing salmon being a low carbon protein that is high in
Omega-3s and essential nutrients
•Committed to reusable, recyclable or compostable packaging across our
business
•Submission of our third Modern Slavery Report (Australian ModernSlavery
Act 2018)
•Working through the completion of the Best Aquaculture Practices audit for
FY24
•Preparation for the incoming Aotearoa New Zealand Climate Reporting
Standards (effective for current financial year)
•BAP 4-star certification achieved in FY23
We continue to progress on our sustainability journey:
7
Thinkstep-anz. (2023). LCA Report –King Salmon from New Zealand. Wellington: thinkstep-anz

1HY24 INVESTOR PRESENTATION
SALES PERFORMANCE
Continuing to target price and product optimisation
First half salesSecond half sales
NZKSarefocussedonsupplyingourkeymarkets. Costincreasesacrossthebusiness
continuetoprovidechallengesandthiscontinuestobepassedonthroughprice
increases,despitethisglobaldemandremainsstrongandcontinuesto exceedsupply
•NewZealandsalesvolumescontractedandthiswasmostlyinthevalueadded
smokedlines. OurImportedAtlanticvolumescontinuetoincreaseasconsumers
seekvalueoptions.
•NorthAmericanpremiumdemandcontinuestoperformstrongly. Mostofthe
increaseinsalesvolumeis infoodservicewholefishwhichis up25%comparedto
1HY23.OurRegalbrandedretailsmokedproductscontinueto performwell.
•TheJapanmarketvolumesdecreasedwhencomparingtoFY23andisa
continuationofthetrendofthelastfewyearswhichistheresultofthepricing
optimisationmodel.
•Asianmarkets,excludingJapanhada significantliftin1HY24duetoa large
contractforsmokedproduct. Thecorebusinessinthismarketremainsstrongand
hasshowngrowththroughoutthefirsthalfof thisyear.
•TheAustralianmarkethasgrownstronglyduetoa largecontractedvolumeduring
this1HY24.Oursupermarketretailproductscontinuetoperformwellintough
conditionswithrisingcostsbeingpassedonto consumers.
•TheEuropeanmarkethasseensignificantpriceincreasesandthishasbeen
challengingforsomecustomers. Thisis partofourpriceandproductoptimisation
aswefocusonrebuildingourtargetmarkets.
Domestic Market (MT)North America (MT)
Australia (MT)
Europe (MT)
Japan (MT)Asia (MT)Excludes Japan
8

1HY24 INVESTOR PRESENTATION
FISH PERFORMANCE
•The firsthalf of FY24 saw the altered Aquaculture model complete its
first summer. The model of having majorityof stock in the Tory Channel
and away from warmer water sites has proved successful to date with
significantly reduced mortalityin the first half ofFY24 compared to
previous years
•Harvest volume will be up on FY23 but NZKS still see further
optimisation opportunities to increase this again in FY25
•Feed price remains under significant pressuredue toraw material
ingredients, especiallyfish oil which has seen significantincreases in
price
•Monitoring the temperature profile of our sea farm sites is continous,
which includes regular engagement with meteorologists. Work continues
on thermo-tolerance trials with our breeding stock. The aim to be able to
select and breed amore thermo-tolerant salmon. This work is still in its
early phases, however is showing very promising initial results.
9
Biological Performance
1HY241HY23% chg.
Harvest Volume G&G (MT)
2,993
2,7738%
Average G&G Harvest Weight (Kg)3.69
2.88
28%
Closing Livestock Biomass
4,7703,791
26%
Feed Cost ($ / Kg of feed)
3.332.75
21%
SoundFarm
G&G Volume Harvested (MT)
1HY241HY23
Queen Charlotte
Ruakaka
--
Otanerau
229-
Tory Channel
Clay Point
1,567524
Te Pangu
3101,699
Ngamahau
870
-
Pelorus Sound
Waitata
-28
Kōpaua (fallowed)
-124
Waihinau (fallowed)
-
136
Forsyth (fallowed)
-252
Freshwater
17
10
2,9932,773
2018
2019
2020
2021
2022
2023
Mortality Biomass Feb-July last 5 years

1HY24 INVESTOR PRESENTATION
1HY24 RESULTS
02
10

1HY24 INVESTOR PRESENTATION
1HY24 HEADLINE FINANCIAL PERFORMANCE
Volume Sold – increase on the prior period due to the mortality event which reduced
the available biomass for sale in 1HY23
Revenue – increased on the prior period due to the increase in available harvest as
well as improved pricing driven by supportive market dynamics. Revenue and margin
were further enhanced through product optimisation andmarket choices.
Gross Margin % – Increased on the prior period due predominantly to lower
mortalities and reduced cost of fish but also improved pricing and product/market
optimisation. In 1HY24 the GAAP result compared to the pro-forma result was
positively impacted by a fair value gain due to a reduction in forecast mortalities and
improved forecast sales volumes and biomass.
EBITDA – Was positively impacted by the improved Gross Margin noted above as well
as slightly reduced Overheads. The reduction in overheads comes from our continued
focus on efficiency following last years rightsizing of the business. GAAP results
positively impacted by a fair value uplift in assets of $4.1m (1HY23 loss of $8.3m) and
continued unwind of early close out of FX contracts in FY22 ($3.5m)
NPAT– increased on prior period mainly as a result of improved EBITDA but also due
to lower net financing cost following the rights issue in FY23. GAAP NPAT improved
but to a lesser extent (relative to EBITDA) as the tax on the fair value gain weighed on
the result
.
11
1
A full reconciliation between GAAP and Pro-Forma results is shown on pages 19 and 20 of this presentation
2
1HY23 numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as previously
communicated
Group Financial Performance
GAAPPro-Forma
1
NZ$000s1HY241HY23% chg.1HY241HY23
2
% chg.
Volume Sold (t)
3,024 2,885 5%3,024 2,885 5%
Revenue
91,561 80,033 14%91,561 80,033 14%
Gross Margin
27,110 (8,045)<>22,939 266 <>
Gross Margin %30%
-10%25%0%
EBITDA18,459 (17,984)<>10,737 (12,696)<>
EBITDA %20%
-22%12%-16%
EBIT14,607 (22,343)<>6,885 (17,055)<>
NPAT
10,630 (24,487)<>4,076(21,526)<>

1HY24 INVESTOR PRESENTATION
PRO-FORMA
1
EBITDA COMPARISON
12
•Revenueas discussed previously is up due to a combination of increased available volume and pricing initiatives
•Cost of goods –was up on prior year driven by volume and cost inflation. NZKS continue to manage inflationary pressures through optimising our Aquaculture and Processing
operations.
•MortalityThe decrease in mortality from 1HY23 reflects the previous summers mortality event which started at the end of FY22 and carriedon into 1HY23. Current mortality
continues to trend near historic lows following the introduction of the new farming model.
•Freight is flat relative to prior year which represents an improvement on a per kg basis from prior year as freight routes open up and providers return to the market having exited
during covid.
1
Refer to pages 19 & 20 for full reconciliation between GAAP and Pro-Forma results
2
1HY23 numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as previously communicated

1HY24 INVESTOR PRESENTATION
•NZ King Salmon’s net cash position of $25.2m is an improvement of just under $10m from
January and a vast improvement from a net debt position of $46.7m 18 months ago. This
strong balance sheet gives NZKS a great platform to invest in resilience and the next stage of
growth.
•While strong EBITDA performance provides the backbone of this improved cash position other
areas have also contributed to further strengthen the balance sheet:
►Receivableshave reduced despite increased sales and prices
►Inventoriescontinue to reduce, this time driven by thawing of whole fish frozen down over
last year’s seasonal harvest. This thawed product provides an input into our smoked and
value added products which has allowed us to expand production of these products.
►NZ King Salmon invested a net $1.7m in capexfor the period ended 31 July 2023.
Following a partial pause of all non-essential capex during FY23 we continue to tightly
monitor our Capex spend to ensure that we are maintaining current infrastructure but also
not ignoring shorter term returns while we plan for longer term growth. FY24 capex is
weighted to 2HY24
►The increase in biological assets is a slight drag on cash as we continue to rebuild
biomass following the mortality event in FY22/23 however most of the increase shown is
driven by the non-cash increase in fair value
13
BALANCE SHEET – SOLID PLATFORM FOR GROWTH
Group Financial Position
Jul-23Jan-23
NZ$000sUnauditedAudited
Current Assets
Cash and equivalents28,66619,221
Receivables14,74016,573
Taxation Receivable(998)164
Inventories26,81729,729
Biological Assets70,20660,348
Derivative financial assets1,4231,906
140,854127,941
Non-current Assets
Property, plant & equipment46,94948,176
Biological assets10,30412,344
Other9,86012,827
67,11373,347
Total Assets207,967201,288
Current Liabilities
Loans (external)750750
Lease Liabilities1,0071,191
Payables13,46813,662
Other7,6496,855
22,87422,458
Non-Current Liabilities
Loans (external)2,7502,750
Lease Liabilities3,1093,328
Other5,0024,846
10,86110,924
Total Liabilities33,73533,382
Net Assets174,232167,906
Net Cash / (Debt)25,16615,721

1HY24 INVESTOR PRESENTATION
STRATEGY UPDATE & FY24
UPDATE
15
03

1HY24 INVESTOR PRESENTATION
FY24 GUIDANCE & 12 MONTH ROLLING EBITDA
15
$21m
12 Month Rolling Pro-
Forma EBITDA
$23.5-$27.5m
FY24 Guidance
•Recent farming model changes and the company’s focus on fundamentals is now
reflected in results, as shown by the improvement in the 12-month rolling proforma
EBITDA at $21m
•We have increased our guidance range to $23.5m – $27.5m reflecting strong YTD
performance acknowledging there is inherent uncertainty over the Dec-Jan period.
•Our FY24 guidance is supported by:
oPricing: Current market dynamics continue to create strong pricing support,
particularly in export markets
oFish Performance: Fish performance is ahead of plan from a costing
perspective as our new farming model continues to drive efficiencies
oCost Control: Following the right sizing of the business we are continuing to
push for efficiencies and have created a strong culture around this.
•The performance of the underlying business gives NZKS a strong platform from
which to develop and fund future growth strategies
•Dividends remain on hold as NZKS develops production growth options

1HY24 INVESTOR PRESENTATION
BLUE ENDEAVOUR AND GROWTHSTRATEGY UPDATE
16
•The Consent Order for Blue Endeavour was issued by the Environment court on Sept 19th –This finishes the appeals
process.
•An aquaculture decision by the Ministry of Primary Industries (MPI) is now required to indicate they are satisfied that
the consent will not have an undue adverse effect on fishing (s186C Fisheries Act 1996). This process is expected to
take 2 months.
•The consent has a baseline monitoring period (12 months of monitoring in an 18-month period) before farming can be
undertaken on-site.
•Once monitoring is complete NZKS intends to build a pilot farm on the site to further test the business case for open
ocean farming. NZKS would look to do at least one harvest from this Pilot farm before committing to a progressive
scaling up in order to best manage the risk profile of this investment.
•The 18 month monitoring period affords further time to finalise the key infrastructure requirements that will be needed
to support Blue Endeavour. This is not just the infrastructure needed on the site but may also include:
oFresh water infrastructure to ensure the stability of our supply of smolt to sea at significantly increased volume.
oHarvest and transport infrastructure to make sure we move our salmon in the most efficient and economic
fashion, and maintain fish welfare.
oProcessing infrastructure to efficiently handle the increased throughput
•All these investments will be considered as part of our long-term capital investment program. NZKS will provide
updates to shareholders as these plans are developed.
•The performance of the existing business is a critical element in enabling the growth aspirations.
Consent Granted but
appealed
Mediation begins with
DOC& the McGuiness
Institute
Nov -22
Successful Conclusion
of Mediation
Monitoring
Sep -23
Consent Order Issued
Mar - 23
May - 23
MPI Decision
Nov -23

1HY24 INVESTOR PRESENTATION
17
APPENDICES
04

1HY24 INVESTOR PRESENTATION
EXISTING SEA FARM RESOURCE CONSENTS AND EXPIRY
FarmsRegionExpiry dateStatus
RuakakaQueen Charlotte2024Active
OtanerauQueen Charlotte2024
Active
Forsyth BayPelorus2024Fallow
WaihinauPelorus2024Fallow
Crail Bay x 2Pelorus2024Fallow
Clay PointTory Channel2036
Active
Te PanguTory Channel2036
Active
WaitataPelorus2049
Active
NgamahauTory Channel2049
Active
KopauaPelorus2049Fallow
18
•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
•Kōpaua, Forsyth andWaihinauare currently fallowed
•Ruakaka and Otanerau form part of the updated production plan, receiving fish post summer
viatow operations from the Tory Channel farms
•The Marlborough District Council released its decisions on the provisions regulatingmussel
farming in Q2 2023¹.The provisions which relate to salmonfarming were withdrawn.The
Marlborough District Council is working with iwi, the Government and the wider community to
work on new salmonfarming provisions to enablealignment with the NZ Aquaculture
Strategy.NZ King Salmon is involved in thesediscussions.The timing of that process
is uncertain
•Renewingthe 2024 farms will require applications to be lodged.Work on this has
commenced. Should applications be made under the National Environmental Standards for
Marine Aquaculture, there will be limited public notification
•Applications to make the high flow farms operate under a consistent set of consent conditions will
be lodged in the second half of FY24
•Farms will be able to operate on their current consents until all applications and appeals
havebeenresolved

1HY24 INVESTOR PRESENTATION
1HY24 RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA
FINANCIALS
19
1HY24
NZD 000s
Statutory Financial
Statements
Fair Value
Adjustments
Early FX Close-outs
Pro-Forma
Operating Financial
Information
Revenue91,561 91,561
Cost of goods sold(84,435)27,018 (57,417)
Fair value gain / (loss) on biological transformation31,189 (31,189)-
Freight costs to market(11,205)(11,205)
Gross Margin27,110 (4,171)22,940
Other operating income3,974 (3,551)423
Overheads
Sales, marketing and advertising(5,229)(5,229)
Distribution overheads(1,675)(1,675)
Corporate expenses(5,721)(5,721)
Other expenses--
EBITDA18,459 (4,171)(3,551)10,737
Depreciation and amortisation(3,852)(3,852)
EBIT14,607 (4,171)(3,551)6,885
Finance income457 457
Finance costs(183)(183)
Net finance costs274 -274
Profit / (loss) before Tax14,881 (4,171)(3,551)7,159
Income tax (expense) / credit(4,251)1,168 (3,083)
NPAT10,630 (3,003)(3,551)4,076

1HY24 INVESTOR PRESENTATION
1HY23
1
RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA
FINANCIALS
20
1HY23
NZD 000s
Statutory Financial
Statements
Fair Value
Adjustments
Early FX Close-outs
Pro-Forma
Operating Financial
Information
1
Revenue80,033 80,033
Cost of goods sold(89,921)21,533 (68,388)
Fair value gain / (loss) on biological transformation13,222 (13,222)-
Freight costs to market(11,379)(11,379)
Gross Margin(8,045)8,311 266
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--
EBITDA(17,984)8,311 (3,023)(12,696)
Depreciation and amortisation(4,359)(4,359)
EBIT(22,343)8,311 (3,023)(17,055)
Finance income116 116
Finance costs(1,276)(1,276)
Net finance costs(1,160)-(1,160)
Profit / (loss) before Tax(23,503)8,311 (3,023)(18,215)
Income tax (expense) / credit(984)(2,327)(3,311)
NPAT(24,487)5,984 (3,023)(21,526)
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1HY23 numbers restated as NZKS is no longer reversing the impacts of NZ IFRS 16 leases as previously communicated

1HY24 INVESTOR PRESENTATION
APPENDIX – GLOSSARY OF TERMS
1HY24Financial results for the 6 months from 1 February 2023 to 31 July 2023
2HY24Financial results for the 6 months from 1 August 2023 to 31 January 2024
FY24Financial results for the 12 months from 1 February 2023 to 31 January 2024
FY23Financial results for the 12 months from 1 February 2022 to 31 January 2023
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
GAAPGenerally Accepted Accounting Practice
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
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1HY24 INVESTOR PRESENTATION
UNDERSTANDING OUR GAAP RESULTS
The impact of NZ IAS-41 Agriculture and NZ IAS-2 Inventory
Our GAAP results are impacted by Fair Value gains or losses arising from the application of NZ IAS-41 Agriculture and NZ IAS-2 Inventory. 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.
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