Global Proteins presentation

NZX Release


7 June 2024

GLOBAL PROTEINS PRESENTATION

Scales has today released the attached presentation on its Global Proteins division.

The purpose of the presentation is to provide investors with further information on the
division.

The presentation will cover the following five main themes:
1. The petfood industry and why both ourselves and our customers are excited
about the future growth prospects
2. Our growth platform and why we are well positioned to capitalise on this
opportunity
3. The market participants – including details on customer mix, supplier network
and competition
4. Our strategy and some financial analysis with a focus on our new growth
targets
5. Our outlook including some of the strategic initiatives that will help us deliver
on these targets


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

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

---

SCALES CORPORATION LIMITED - Bringing Nutrition to the World
June 2024
Global Proteins
Investor Presentation

Global Growth
Opportunity
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
2

Note: Sources and references provided in Appendix
•Families in the U.S, Brazil, EU and China have over half a billion
dogs and cats alone, with more than half of the global population
estimated to have a pet at home
1
•Trends in pet ownership are closely linked to global demographic
changes – in the US, millennials now account for a third of all pet
owners, the largest proportion of any generation
1
•While the pandemic accelerated pet ownership, household
formation among millennials and Gen Z will likely sustain it. 65% of
18-34 year olds plan to acquire or add a pet in the next 5 years
(from 2021)
3
•Emergence of “pet culture” and humanisation leading to increased
number of pets kept for companionship alone
1
•The expanding middle class is driving pet population growth in
emerging markets – China’s pet population rose 113% between
2014–2019, coinciding with relaxation of ownership restrictions
and a falling birth rate
1
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
3
Global Petfood Market
Large and growing market underpinned by powerful global trends
... THAT IS EXPECTED TO GROW AT 5-6% P.A. OVER THE NEXT 5 YEARS
CAGR:
2023-2029
6.1%
5.3%
•Rising incomes are seeing people spending more on their pets
1
•Pet ownership is associated with improved mental and health
outcomes
1
•The premium price segment remains the most dynamic. Companies
strengthen their positions in this segment by addressing demand for
health, value-added products and sustainability
•Premiumisation driving majority of petfood segment growth,
between 2019 and 2022, 78% of the petfood market growth was
from the premium segment, with trends in science-based nutrition,
expandable consumption (treats and wet cat) and emerging growth
areas (fresh, supplements) driving growth
2
US$100B+ MARKET, SUPPORTED BY MACRO TAILWINDS ...
LARGE AND GROWING PET POPULATIONINCREASING PRICE PREMIUMISATION
8
1.00
1.05
1.10
1.15
1.20
1.25
1.30
1.35
1.40
1.45
1.50
2023202420252026202720282029
AsiaUSEU
4.6%

Favourable Industry-Specific Factors
•The pet industry is unique in its resilience to economic
recessions and downturns
•Despite the financial crisis of 2008, the pet industry
experienced a 5.1% growth in sales
•During the more recent 2020 COVID-19 recession, sales of
pet products and services continued to grow at a faster rate
than the overall U.S. economy, with a 16.2% growth
compared to 4.3%
•Pets play increasingly important roles in single-person
households, in families without children and for couples
whose children have grown up and left the family home
•Millennials, adults between their early 20s and late 30s,
represent a growing constituency of pet owners as they are
more likely to have children later in life, work from home or
in hybrid formats and have a higher income and level of
education
•Older age groups are also increasingly likely to have pets for
the companionship and health benefits that companion
animals can provide
•Pet ownership provides a range of therapeutic,
physiological, psychological, and psychosocial benefits to
owners, including reduced blood pressure and risk of heart
attacks, increased physical activity and improved mental
health
•The United States has become the largest exporter of
petfood products to China
•U.S. dog and cat food exports to China reached a record
US$264 million in 2022 – a 263% increase on 2021
•Calorific coverage represents the number of dogs and cats
which are consuming processed petfood rather than food
leftover from the family table
•In emerging markets, pets consume almost half the amount
of processed petfood to those in the developed world
•It is estimated that a 1% increase in calorific coverage in
emerging markets equates to ~$1 billion of additional
market value
RESILIENT TO RECESSIONS AND DOWNTURNS
4
THE HUMAN-ANIMAL BOND
1
INCREASED US / CHINA TRADE
5
INCREASING PETFOOD PENETRATION HAS
THE POTENTIAL TO PROVIDE SIGNIFICANT
ORGANIC GROWTH
2
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
4
Resilient consumer market, supported by health trends, increased trade and petfood penetration
4.3%
16.2%
US economyUS petcare
6
11
33
73
265
20182019202020212022
41%
79%
EmergingDeveloped
CALORIFIC COVERAGE FROM PROCESSED
PETFOOD VS. FROM THE TABLE
VALUE OF DOG AND CAT FOOD
EXPORTED TO CHINA (US$M)
Note: Sources and references provided in Appendix

Dog and cat food retail market value 2023
(US$b)
56.929.718.4
Household dog / cat ownership (%)44% / 38%21% / 24%14% / 9%
Largest pet segments (retail market share
2023)
Premium Dry Dog Food: 22%
Mid-Priced Dry Dog Food: 10%
Premium Wet Cat Food: 9%
Premium Dry Dog Food: 13%
Premium Wet Cat Food: 12%
Mid-Priced Wet Cat Food: 12%
Premium Dry Dog Food: 16%
Premium Wet Cat Food: 15%
Mid-Priced Wet Cat Food: 14%
Top 10 petfood manufacturers market share
(2023)
~76%~56%~43%
Key Markets
Source: Euromonitor. Asia (excl. Japan) includes: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore South Korea, Taiwan, Thailand and Vietnam
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
5
Developed markets provide significant scale and continued growth from increases in pet population and premiumisation
USA
WESTERN EUROPEASIA PACIFIC

Total meat ingredients 2023

2,995,175 tonnes1,506,015 tonnes237,926 tonnes
% Meat inclusion of total ingredients volume28%24%8%
Meat ingredients volume by species
We estimate our serviceable market across Pork, Beef, Lamb, Fish and Poultry is ~50% of the above total meat ingredients volumes. This estimate is based off internal market knowledge,
extrapolations from source data and excludes rendered meals and some by-products.
Global Proteins sales by market 2023~129,000 tonnes~1,600 tonnes~6,600 tonnes*
Key Markets
Source: Euromonitor. Asia (excl. Japan) includes: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore South Korea, Taiwan, Thailand and Vietnam
*Include sales for New Zealand and Australia which are not captured in the Euromonitor APAC market data
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
6
An opportunity to increase market share exists across all our geographies, adding to the expected organic market growth.
USA
WESTERN EUROPE
ASIA PACIFIC

DRY DOGWET DOGDRY CATWET CATSNACKS & TREATS
MARKET SIZE (US$B)4213212019
FORECAST MARKET
GROWTH
(CAGR: 2023-29)
4.7%4.7%6.7%5.2%5.5%
PROTEIN & FAT %
IN FINISHED PRODUCT
20%40%20%49%30%
SCALES PROVIDE
INGREDIENTS FOR
Petfood Segments
Source: Euromonitor
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
7
Growing petfood segments with high levels of protein

Strong Growth
Creating Challenges
and Opportunities
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
8

Increased investment across the major
petfood brands to increase capacity
One large brand owner has stated they are
having difficulties meeting their current
demand, which is why they have ramped
up their capex spend - Between 2022 and
2025 they are investing CHF 3 billion all
over the world.
They have also stated that they are not
concerned about demand or overcapacity
and have actually been limiting marketing
spend to manage it.
INCREASED INVESTMENT
2
...
CREATES AN OPPORTUNITY FOR GLOBAL PROTEINS
•Procuring raw materials, scarcity of ingredients and the need to
manage resources to stay withing the planetary limits have been
identified as important issues and challenges for petfood
manufacturers
7

•To ensure new factories can be operated efficiently, petfood
manufacturers are developing longer-term, strategic supply
relationships with key protein suppliers, such as Meateor, Shelby
and Esro Petfood
SCALES GLOBAL PROTEINS BUSINESSES...
✓Integrated into the supply chains of the largest global petfood
manufactures
✓Are able to aggregate and offer multiple ingredient products to
simplify their supply chain and logistics
✓Have a proven track record of providing a reliable, in specification
and on-time service. Important for their just in time operations.
✓Are strategically investing – our recent investments provide
capacity for growth and a diverse production platform to solve
our customers’ challenges and leverage industry tailwinds
Rapid Growth Causing Challenges for Manufacturers
Petfood manufacturers are investing to meet customer demand and are looking to mitigate supply chain risks
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
9
➢SUPPLY CHAIN RESILIENCE
➢SCARCITY OF INGREDIENTS
➢COMMITMENT TO NET ZERO
➢ENVIRONMENTAL IMPACT OF SOURCING AND
PACKAGING
COMPOUNDS EXISTING PRODUCTION CHALLENGES
6
...
Note: Sources and references provided in Appendix

Scales Global
Proteins Growth
Platform
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
10

A Global Platform
Scales Global Proteins division is strongly positioned to benefit from growing global demand for the reliable supply of diverse proteins.
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
11

Scales Petfood Species Breakdown
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
12
Species diversification is a key focus, with more recent emphasis on our ‘new’ categories
Lamb / Ovine
23%
Beef
43%
Pork
29%
Chicken / Poultry
1%
Salmon
2%
Venison
2%
•Salmon is a key opportunity as
another high value species
•There is an opportunity to leverage
our sales channels and
relationships to grow this product
category, and we will be
investigating strategies to further
develop our supply relationships
•This includes growth in our existing
European operations and
discussing supply agreements in
the US

Leon Coolen: Managing Director
Leon joined Esro Petfood in 2023. Leon came
from Thai Union Ingredients where he was
Managing Director for 5 years, and prior to that
was CEO of Friesland Huishan Dairy
Chris Kwekkeboom: Purchase Director
Chris comes to Esro with 30 years experience
in sales and procurement of meat by-products,
including a long tenure with CTH – a Darling
ingredients brand
Rik Poels: Commercial Manager
Rik joined Esro Petfood in 2023 after 8 years at
AFB international which is a petfood ingredient
company specialising in palatability enhancers
A Global Platform
Deep industry executive experience across Global Proteins, which we are leveraging to develop our sales teams across the division
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
13
Brett Frankel: President Shelby Foods
Brett established Shelby Foods in 2007 and has
been its President since inception. Brett has over
20 years’ experience in petfood, having had a
senior procurement role prior to starting Shelby
Chris Flotron: Executive Vice President
Shelby Foods
Chris has been with Shelby since 2019. Prior to
Shelby Chris was in senior procurement roles at
Nestle Purina for 25 years. This included
managing the meat protein categories
Richard Bondarenko: Director of Operations
Shelby Foods
Richard has been at Shelby for 5 years, managing
their operations across both owned and toll
processing sites. Prior to Shelby, Richard was in
senior roles at Smithfield foods and Darling
Ingredients
John Sainsbury: CEO Meateor Group
John has been with Meateor in various
management roles for over 20 years. Prior to that,
John worked in senior management, marketing
and operational roles in the United States
Kate Gower-James: Market Manager
Kate has been with Meateor for 2 years, having
previously worked at Atkins Ranch, and AFFCO.
Kate has been a key member of the team
commercialising the new Melbourne plant
George Latta: Vice President of Group
Business Development
George is a recent addition to the Global Proteins
team, having come from Synlait after spending 7
years across various sales and business
development roles
Tim Harty: General Manager
Tim has had over 20 years’ experience in
the export meat industry, in marketing
and operational roles, both in New
Zealand and overseas
Harry Clinton-Baker: Sales Manager
Harry joined Meateor in 2021 and is
responsible for sales and customer
development both domestically and
internationally

EDIBLE – MULTIPLE USES
PHARMA – MULTIPLE USES
WET PETFOOD
DRY PETFOOD
RENDERING – MULTIPLE USES
PET TREATS/SNACKS
PRIME CUTS
LANDFILL
ABATTOIRS
BY-PRODUCT FLOW
PROCESSING
Global Proteins Supply Chain
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
14
Global procurement strategies, logistics network and integrated customer relationships provide a unique supply chain advantage
SCALES SUPPLY CHAIN

Market
Participants
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
15

MARKET SHARE OF THE 10 LARGEST GLOBAL PETFOOD BRAND OWNERS IN THE US
8
SCALES GLOBAL CUSTOMER SPREAD (BASED ON VOLUME)
Our Customers are Large and Growing
We supply 8 of the top 10 largest global petfood brand owner’s – there is further opportunity to support their growth ambitions
Despite servicing some of the largest companies in the industry, we maintain a diversified customer mixOur customers continue to grow and over the past 10 years, have increased their combined market share from ~56% to
~74% in the US.
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
16
26%
9%
13%
8%
5%
3%
4%
6%
2%
3%
2%
2%
2%
Other customers
50
55
60
65
70
75
80
2014201520162017201820192020202120222023
% market share
Scales customersOthers
Note: Sources and references provided in Appendix

SUPPLIER DYNAMICS
•Large abattoirs fragmented by geography and
company
•Seasonal supply
•Proximity to suppliers is critical
•Predominantly export market therefore reliant on
international networks and logistics
OUR POSITIONING
•Inter-generational relationships with suppliers
•In-plant collection and cooling systems with two
key suppliers
•Ability to take all product (edible and inedible)
•Located close to abattoirs and ports to increase
efficiency
Scales Global Proteins Supplier Network
Our deep local partnerships and supplier relationships provide customer expansion opportunities
SUPPLIER DYNAMICS
•Highly concentrated among large abattoirs
•By-products are not their core business (focus is on
Prime cuts)
•Their large scale requires efficient and reliable pick
up of by-product
•Products largely sold domestically
OUR POSITIONING
•Optimal site location relative to suppliers and
customers
•In-plant collection and cooling systems
•Network infrastructure and in-house trucking
brokerage to manage strict logistics requirements
•Medium to long-term supply commitments in place
•Inter-generational relationships with suppliers
(duration of 40 + years)
SUPPLIER DYNAMICS
•Large number of small to mid size abattoirs
fragmented across the region
•Efficient network design is critical to manage by-
product collection & customer supply
•Products largely sold within the region
OUR POSITIONING
•Intend to grow our network across multiple sites
•Our partners have in-plant collection systems
•Ability to take all product (edible and inedible)
•Leveraging our partner logistics and supply network
capability
•Intergenerational supply relationships through our
partners
SUPPLIER DYNAMICS
•Abattoirs geographically spread across the country
•Seasonal supply of diverse species mix
•Proximity to suppliers is critical
•Domestic and export markets. Export reliant on
international networks and logistics
OUR POSITIONING
•Investment partnership with world’s largest lamb
processor
•Long-standing relationships with suppliers
•Extensive domestic network
•Strong relationships with international customers
•Providing reliable supply of high-demand species
(e.g. lamb)
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
17

DIVERSE SPECIES / PRODUCT OFFER
LIMITED SPECIES / PRODUCT OFFER
LIMITED GEOGRAPHIC FOOTPRINT
GLOBAL GEOGRAPHIC FOOTPRINT
Competitors –
Core business
Competitors – Non-
core business
Single geographic and
single species focused
Global Proteins is one of two
geographically and species
diverse providers of petfood
ingredients with scale
Multinational meat processors. Greater
market diversification but petfood
ingredients is used in value chain
optimisation – not a core focus
Market specific competitors – either
brokers (greater species diversification),
or companies that process
Hard for them to expand into new
markets, and establish processing
operations due to scale required and
supply relationships
Scales Global Proteins Competitors
Source: Scales estimates
Scales are one of the only global providers of offal, MDM, slurries and blends across a range of diverse species
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
18
Scales Global
Proteins

Our Strategy and
Execution
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
19

•Network design to ensure supply chain excellence and on-
time delivery even in the most challenging environments
•This includes, co-location and in-plant collection systems to
secure raw material, and deliver efficiencies to our customer
•Building capability in new geographies that leverages our
processing knowledge and operational excellence
•Sourcing globally to improve supply continuity for our
customers
GLOBAL SUPPLY AND LOGISTICS EXCELLENCE SPECIES AND PRODUCT DIVERSIFICATION
•Leverage supply relationships to aggregate product and
simplify their supply chain
•Expand species offering to become a ‘one stop shop’ for our
customers
•Expand product ‘type’ offering frozen, fresh, blends, powders
to simplify the procurement process for our customers and
facilitate consolidation of supplier accounts
•Aligning sustainability objectives and data management with
our customers
•Consistent investment in innovation and technology to
improve products and operations
•Explore niche product development to align to key customer
trends, specifically around sustainability and functional
health products
VALUE-ADD THROUGH INNOVATION AND
SUSTAINABILITY
DEEPENING CUSTOMER RELATIONSHIPS
•Working with our customers to understand future growth,
investment and supply requirements
•Integrated business planning, underpinned by new product
development, and further co-locations
Our Strategic Pillars
Critical factors in becoming a global integrated partner with both our customers and suppliers
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
20

1995
Meateor NZ
established
2022
•Scales acquires 33% of
Meateor Australia
•Scales acquire 50% of
Fayman International and
42.5% of ANZ Exports
•New product
development in the US
2023
New production
facility in Melbourne
2023
Acquire 50%
shareholding in
Esro Petfood
2024
Developing a new
site in Netherlands
(to replace Belgium)
2024
New toll processing site
for Shelby, increased
capacity is underpinned
by a multi-year agreement
with a significant
customer
2018
Scales acquires
60% of Shelby
2019
Meateor NZ - JV
(50/50) established
between Scales and
Alliance.
2020
New toll processing
facility commissioned
for Shelby
2023
Esro Petfood
commission new
production facility in
Belgium
1995201520202025
ESTABLISHED AND PROVEN GLOBAL
GROWTH PLATFORM
2023
New blending capability
U.S and N.Z
A Proven Track Record
Almost 30 years of experience providing the platform for recent and future growth
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
21
2024
Shelby have commissioned a new
in-plant collection system with a
long-term supply agreement with a
key supplier
2025
Exploring potential
locations to expand
Esro Petfood
2005
Meateor NZ moves
from toll processing, to
exporting venison and
lamb internationally
2003
Meateor NZ develops its
Dunedin site
2024
Increased stake
in Meateor
Australlia

Financial
Performance
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
22

$83.1m
$155.1m
$173.7m
$218.9m
$319.9m
$298.5m
$330.0m
$10.2m
$13.5m
$23.1m
$33.4m
$60.2m
$54.5m
$70.0m
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
$0m
$50m
$100m
$150m
$200m
$250m
$300m
$350m
201820192020202120222023≈2027
RevenueEBITDAEBITDA margin
GLOBAL PROTEINS REVENUE (lhs), UNDERLYING EBITDA (lhs) AND UNDERLYING MARGIN
(rhs)
Acquisition of Shelby resulting
in a significant increase in
revenue and EBITDA
Product mix changes, the introduction
of the new facilities, and supply chain
excellence resulted in growth during a
covid disrupted market
Increases in volume and demand as
supply chains continue to be disrupted.
Improvement in product mix and margin
with new product development.
Continued improvement in product mix.
Performance reflects our ability to manage
supply demand dynamics, despite market
downturn and Australian transition
Strong Growth – Global Proteins
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
23
Global Proteins FY23 target of $25 mill EBITDA was achieved in FY21 – target has now been reset to $70 mill in FY27
9 key projects underpin this growth across
NZ, Australia, US and Europe.
6 of these are either complete or currently
in development with the final 3 being
investigated.

PETFOOD REVENUE (LHS) AND EBITDA (RHS) (NZ$ / KILOGRAM)KEY PERFORMANCE DRIVERS
•Increased % processed vs traded product which drives
greater margins
•Shift to higher volume, higher margin species
•Introduction of blending and new product development at
key North American facilities, leading to increased yields
and higher margins
•Leveraging our supply chain excellence and reliability during
COVID to drive overall division growth
•Ability to manage supply / demand dynamics maintaining
margin despite lower volumes
•Future margins will be impacted by business and product
mix changes as our strategic initiatives come to maturity
Financial Performance – Petfood only
Strong unit economics for the Petfood businesses
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
24
$1.69
$1.83
$1.79
$2.35
$2.56
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
20192020202120222023
Revenue / kg (lhs)EBITDA / kg (rhs)

GLOBAL PROTEINS ROCE VS COMPARABLE COMPANIES
7
GLOBAL PROTEINS ROCE VS. COMPARABLE COMPANIES AND SECTOR MEDIAN (2023)
7
•Scales’ goal is to generate a long-run average return on capital employed of 12.5% across the entire group
•Global Proteins continues to generate a ROCE that is well above the target – reaching 46.8% in 2023.
•Comparable companies have a median ROCE of 12.5%
•Scales Global Proteins ROCE of 46.8% is significantly higher than comparable sectors in New Zealand
Return on Capital Employed
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
25
Above average returns on invested capital
0%
10%
20%
30%
40%
50%
60%
70%
20192020202120222023
Comparable companiesScales (Global proteins)Scales target ROCE
-20%
-10%
0%
10%
20%
30%
40%
50%
Median by Sector (NZ listed companies)Median - Comparable companiesScales (Global proteins)
Note: Sources and references provided in Appendix

Outlook
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
26

•Upgrading our technology and systems to provide more
transparency across our global supply chain. Starting roll out in
2024 with Meateor New Zealand
•Additional capacity, through a new toll processing site in the US. Will
increase the US capacity by an initial 13,000 tonnes from 2025
•Commissioned an in-plant collection and cooling system, inside a
key suppliers’ facility in 2024. This provides raw material security,
with a long-term supply agreement forming part of the deal
•Continued global expansion– developing a new site in the
Netherlands to replace the Belgium facility. This will be located
beside our partners edible plant, introducing additional supply chain
efficiencies
•Investigating a second European site in 2025
GLOBAL SUPPLY AND LOGISTICS EXCELLENCE SPECIES AND PRODUCT DIVERSIFICATION
•Increased salmon production through our Esro facility.
Aiming to double salmon production in 2024
•In discussions on a long-term fish supply agreement in the
US
•Investigating several options in poultry, including commodity
and value add products
•Continue to develop new products through the NZ, EU and US
plants, specifically fresh product and blends. Both the NZ
and US blending lines are operational in 2024
•Actively exploring new material for niche products, including
low carbon and regenerative ingredients. Trials are underway
•Emissions target setting 2025
•Continuing with our decarbonisation plans (see following
slide)
VALUE-ADD THROUGH INNOVATION AND SUSTAINABILITYDEEPENING CUSTOMER RELATIONSHIPS
•Simplifying our sales processes as we expand globally to
manage key accounts while leveraging group inventory and
sales opportunities. This has helped with the transition in
Australia
•Have signed a long-term customer agreement, underpinning the
increased capacity in the new toll processing site in the US
•Reliable delivery of initiatives across the other pillars will
strengthen existing customer relationships and help to establish
new supplier and customer relationships
Significant Embedded Growth Options
Short-to-medium term growth opportunities that build on our strategic pillars
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
27

DECARBONISATION
PLANS
Sustainability
We are committed to improvements across our network, to align with our customers' requirements
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
28
PROGRESSINITIATIVES
GENERAL PLANT UPGRADESGeneral efficiency improvements with the recent development of new plants (both owned and toll)
HEAT RECOVERY
Upgrade of Hastings refrigeration in 2023, allows the option for future heat recovery. Other options will be investigated
over time.
FORKLIFT ELECTRIFICATIONOur Melbourne plant has installed an electric Forklift fleet, and the European site will follow in 2024
SOLAREsro Petfood are investigating for installation for European site (2024)
BOILER UPGRADES
Amarillo plant boiler upgrade in 2023 improving fuel and water efficiency. Our Melbourne plant added heat recovery to
their new boiler, reducing gas requirements
FREIGHT EFFICIENCIES
Co-location of toll processing facility (2021) with our supplier, improving freight. There is also a greater domestic
market focus (NZ and Europe)
REFRIGERATION UPGRADESNew CO
2
plants used in Australia/Europe, with refrigeration upgrades in NZ

Scales Global Proteins Ambition
Recognised by global petfood brands as
the world's leading natural proteins
ingredient supplier
SCALES - GLOBAL PROTEINS INVESTOR PRESENTATION
29

A proven track-record of
organic and inorganic
growth, delivering
compelling financial
performance and return
on capital
Our Global Proteins
division has the
infrastructure, people and
relationships in place to
provide a foundation for
growth
Our reputation and track
record of supply chain
excellence is resulting in
more integrated
customer opportunities
Our global footprint,
supply security and
diverse species offering
is an asset that is difficult
to replicate
Global Proteins agility and
desire to invest in line with
our customers' growth
plans strengthens our
position
Our customers,
supported by significant
macro and industry
trends, are growing
strongly
Global Proteins: Tipping the Scales
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30
Our track record, strategy and aspirations to increase the shareholding in our joint ventures overtime provides a roadmap for growth

Appendix:
References
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1.Health for Animals: Global State of Pet Care Stats, Facts and Trends (September 2022)
https://www.healthforanimals.org/reports/pet-care-report/global-trends-in-the-pet-population/#:~:text=There%20are%20likely%20over%20a,have%20a%20pet%20at%20home.
2.Nestlé: Consumer Analyst Group of New York investor presentation (24 February 2023)
https://www.nestle.com/media/mediaeventscalendar/allevents/cagny-conference-2023
3.Morgan Stanley: Why Pets Could be a Long-Tail Investment (7 April 2021)
https://www.morganstanley.com/ideas/us-pets-investing-trend
4.NASDAQ: The Pet Industry is a Recession-Resistant Category for Investors Seeking Long Term Gains – Here's Why (9 February 2023)
https://www.nasdaq.com/articles/the-pet-industry-is-a-recession-resistant-category-for-investors-seeking-long-term-gains
5.US Department of Agriculture: Rapid Growth for U.S. Pet Food Exports to China (18 July 2023)
https://fas.usda.gov/data/rapid-growth-us-pet-food-exports-china
6.Nestle Purina in Society Report
https://www.purina.eu/latest-news/articles/news-communities/purina-society-report-reveals-8-trends-will-shape-future
7.Source: S&P Capital IQ and Scales analysis
Comparable companies include: Hormel Foods Corporation, JBS S.A., Marfrig Global Foods S.A., Nestlé S.A., Ridley Corporation Limited, The JM Smucker Company, Tyson Foods, Inc., Darling
Ingredients Inc.
8.Euromonitor data (2024 Pet Care publication)
References
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