Half-Year Results 2024-25 (revised)

Half Year Result 2024-25
23 January 2025
LIC delivers positive half-year financial results

Livestock Improvement Corporation’s (LIC) strong half-year financial results show New Zealand
dairy farmers continue to focus on cow efficiency and good genetic decisions.
The half-year financial result for the six months to 30 November 2024 has seen significant
improvement from the prior year, indicating that farmers have generally weathered the tough
financial headwinds of 2023 and early 2024.
Summary of financials*:
• Total Revenue: up 8.0% at $185.7 million
• Net Profit After Tax (NPAT): $39.1 million, up 34.8% from the same period last
year
• Underlying Earnings: $33.7m, up 17.4% from the same period last year
• Underlying Earnings forecast range at year-end: $18-22 million, a positive
change from the market update in July 2024.
• View the 2024 Interim Report.
*Refer notes to financial information at end.

The Interim Report shows an increase in total revenue up 8% and in Underlying Earnings up
17.4% from the same period last year. This can be attributed to improved economic conditions
and farmers choosing to invest in LIC’s products and services like fresh sexed semen,
GeneMark Genomics and animal health testing.
Board Chair Corrigan Sowman expressed pride in the co-operative's progress, saying, “I am
incredibly pleased to see farmers continue to recognise the value of investing in productive
herds and resilient farms.
“As a generational co-operative and world leader in pasture-based dairy herd improvement, we
will continue to work alongside farmers to improve the profitability and efficiency of the national
dairy herd. As your Board Chair, I look forward to working with the LIC Board and management
to continue delivering value for our farmer shareholders.”
Business Highlights
Reflecting on the first half of the financial year, LIC Chief Executive David Chin is pleased that
the co-operative’s investments are delivering tangible outcomes for farmers.
“We are making significant progress toward breeding cows with lower methane emissions,”
Chin said. “Our research (funded by the New Zealand Agricultural Greenhouse Gas Research
Centre) has confirmed that genetic variation influences how much methane heifers produce.
“We are now one step closer to breeding low-emission cows. The next step is the building of a
state-of-the-art research barn to enable large-scale monitoring of lactating cows. We are proud
to contribute to emissions reductions and look forward to offering farmers low methane-
emitting genetics in the near future.”
In addition to methane research, LIC continues to lead in herd improvement through its
genomic evaluation tools.
“The launch of our new Genomic product in July 2024 has seen significant uptake from farmers,”
Chin said. “We’ve now surpassed a major milestone, genotyping over 1 million animals. This
milestone reflects the growing trust farmers place in these tools to help accelerate the genetic
gain in their herds.”
LIC’s commitment to operational excellence has also delivered outstanding results for the fresh
sexed semen product.
“The performance of our fresh sexed semen product has exceeded expectations, with 18-24 day
non-return rates now within 1% of conventional fresh semen,” says Chin. “This allows farmers to
achieve even better results by breeding from their highest-performing cows.”
Farmers’ focus on herd health is also evident, as demonstrated by a significant increase in
Johnes Disease testing. Testing rates have doubled in the first six months of the season
compared to 2023, reflecting a growing focus on disease management.
Looking ahead
LIC is actively evaluating its strategy to ensure alignment with farmers’ needs and future
opportunities.

“To continue delivering for our farmer shareholders, we are revisiting our strategy to ensure it is
fit for purpose,” Chin said. “This includes planning for future investments that benefit our
farmers. We’ll share updates on this work in the first half of 2025.”
Season insights
For the 2024-25 season, LIC reports a positive increase in spring submission rates and non-
return rates. Over this mating period, reported dairy industry milk production figures were also
up on 2023-24.

• LIC data showed a submission rate increase from 79.6% in spring 2023 to 81.5% in
spring 2024.
• LIC data showed a non-return rate** rise from 63.2% to 63.8%.
• DCANZ figures showed increased milksolids production over the 2024 spring mating
period, with monthly production for September to November tracking between 2.7% and
5.2% ahead of the same period in 2023.

These rises underscore farmers' dedication to productivity and the effective application of
technology and insights in dairy farming.
Underlying earnings
The co-operative expects underlying earnings* for 2024-25 to be in the range of $18-22 million,
which is a positive shift from $16-22 million announced in July 2024. This range assumes no
significant events, including climate events, or milk price change takes place between now and
then.
ENDS
This statement has been authorised for release by the Board of Directors.

For media enquiries, please email communications@lic.co.nz

*Notes to financial information:

• LIC’s half-year result incorporates the majority of revenues from core artificial breeding
(AB) and herd testing services, but not a similar proportion of total costs so are not
indicative of the second half, nor the full year, result.
• These numbers should be read in conjunction with the financial details in the Interim
Report and 2024 Annual Report.
• Figures have not been audited, with the exception of 31 May 2024 comparatives.
• Underlying Earnings: this is NPAT excluding bull valuation and nil paid share valuation
movements and is considered useful to investors as it is the basis on which LIC has
historically reported and determination of dividends. Non-GAAP financial information
does not have a standardised meaning prescribed by GAAP and therefore may not be
comparable to similar financial information presented by other entities.
• Bull team valuation: LIC’s elite bull team is its largest biological asset, valued at $96.4
million at half-year. This valuation comprises a model that looks at future revenue
streams and costs associated with the current bulls owned, discounted back to current
value. The interim report includes a non-cash revaluation of the bull team.

**Non-return rate
Non-return rate is defined as the percentage of cows that have not returned for a second mating
within a 2-to-24-day period following their first mating as is reported in the DairyNZ Fertility
Focus Report. It excludes all matings that fall outside these parameters.

About LIC:
LIC is a world leader in pasture-based dairy genetics, and for one clear reason: we understand
what makes grazing herds thrive. Our deep expertise is rooted in decades of involvement in
farming, turning our research and product development into practical solutions.
This hands-on knowledge fuels our herd improvement focus, where we merge extensive
research with genetic testing, great on-farm services and software. By monitoring production,
health and fertility across millions of animals, we identify and select the traits that matter most
for pasture performance. Each generation builds on these genetics, helping drive
improvements.
We don’t just develop better herd improvement solutions; we work alongside farmers, using
their data to create herds that perform effectively in real farm conditions.
The results speak for themselves: every day our people are helping turn millions of dairy cows
into resilient, generational herds that are more profitable and productive.

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There's always room for improvement
Livestock Improvement Corporation Limited (LIC)
Interim Financial Statements
For the six months ended 30 November 2024

2 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024

Contents
Key results and position
Our results for the period 4
Our position 5
Our cash flows for the period 6
Changes in our position for the period 7
More details
Accounting policies 8
Business analysis 9
Bull team 10
Equity 11
Other information 12

Key results and position
STATEMENT OF RESULTS FOR THE PERIOD
For the six months ended 30 November 2024
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2024 30 Nov 202331 May 2024
NoteUnauditedUnauditedAudited
Revenue1185,666 171,949 267,288
Purchased materials(21,694)(20,931)(41,255)
People costs(72,342)(68,619)(119,758)
Depreciation and amortisation(13,553)(11,358)(24,047)
Other expenses(31,605)(31,020)(60,516)
Net finance costs151 37 647
Bull team revaluation27,512 - (8,768)
Fair value change in Nil Paid Share receivable(14)284 191
Profit/(loss) before tax expense54,121 40,342 13,782
Tax expense(15,046)(11,361)(6,048)
Profit/(loss) for the period39,075 28,9817,734
Profit per Ordinary Share (excl. treasury stock)$0.27$0.20$0.05
Hedge revaluations3304 (152)(251)
Foreign currency translation movements3116 (27)25
Investment revaluations3251 9,573 8,805
Land and buildings revaluations- - 3,715
Tax effect of building revaluations--(784)
671 9,394 11,510
Comprehensive income for the year 39,746 38,375 19,244
Supplementary non-GAAP note to the results for the period:
Profit/(loss) for the period39,075 28,981 7,734
Plus/(less): Bull team revaluation(7,512)- 8,768
Tax effect on Bull team revaluation2,103 - (2,455)
Plus/(less): Fair value change in Nil Paid Share receivable14 (284)(191)
Underlying earnings33,680 28,697 13,856
Underlying earnings per Ordinary Share (excl. treasury stock) $0.24 $0.20 $0.10
4 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024

Key results and position
STATEMENT OF POSITION
As at 30 November 2024
Director
Date: 22 January 2025
Director
Date: 22 January 2025
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2024 30 Nov 202331 May 2024
NoteUnauditedUnauditedAudited
Cash29,704 38,281 42,341
Debtors89,350 86,673 34,952
Other assets26,205 25,932 26,557
Nil Paid Shares receivable668 1,887 972
Bull team296,384 97,640 88,872
Land, buildings and equipment - owned & leased4119,876 117,865 118,997
Software, goodwill and other intangible assets447,873 42,265 45,917
Total assets410,060 410,543 358,608

Creditors29,897 27,246 23,831
Borrowings- - -
Deferred tax32,248 28,898 30,645
Other liabilities41,572 41,85329,221
Total liabilities103,717 97,99783,697
Net assets306,343 312,546 274,911
Share capital376,737 76,737 76,737
Retained earnings181,328 190,318 150,567
Other reserves348,278 45,491 47,607
Total equity306,343 312,546 274,911
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024 5

Key results and position
STATEMENT OF CASHFLOWS FOR THE PERIOD
For the six months ended 30 November 2024
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2024 30 Nov 202331 May 2024
NoteUnauditedUnauditedAudited
Customer receipts130,112 122,701 264,919
Supplier payments(118,441)(118,112)(223,940)
Net tax payments(236)(1,656)(2,189)
Other operating cash flows(75)436 1,262
Net operating cash flows611,360 3,369 40,052
Software development(7,519)(7,647)(16,097)
Net sales/(purchases) of land, buildings and equipment(5,854)(8,049)(11,570)
Sale / (purchase) of investments(8)19,022 19,030
Net investment cash flows(13,381)3,326 (8,637)
Payment of principal portion of lease liabilities(2,693)(2,384)(5,408)
Nil Paid Share receipts71 163 165
Dividends paid(8,095)(20,762)(38,446)
Net financing cash flows(10,717)(22,983)(43,689)
Movement in cash for the period(12,738)(16,288)(12,274)
Cash at beginning of the year42,341 54,596 54,596
Currency movement on cash holdings101 (27)19
Cash at end of the period29,704 38,281 42,341
6 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024

In thousands of New Zealand dollarsNoteShare capitalRetained earningsOther reserves Total equity
Balance at 1 June 202476,737 150,567 47,607 274,911
Profit/(loss) for the period- 39,075 - 39,075
Dividends paid- (8,314)- (8,314)
Hedge revaluations3- - 304 304
Foreign currency translation movements3- - 116 116
Investment revaluations3- - 251 251
Balance at 30 November 2024 (Unaudited)76,737 181,328 48,278 306,343
Balance at 1 June 202376,737 170,742 50,015 297,494
Profit/(loss) for the period- 28,981 - 28,981
Dividends paid- (23,323)- (23,323)
Hedge revaluations- - (152)(152)
Foreign currency translation movements- - (27)(27)
Investment revaluations- - 9,573 9,573
Reclassification of investment revaluations
on divestment
- 13,918 (13,918)-
Balance at 30 November 2023 (Unaudited)76,737 190,318 45,491 312,546
Balance at 1 June 202376,737 170,742 50,015 297,494
Profit/(loss) for the year- 7,734 - 7,734
Dividends paid- (41,827)- (41,827)
Hedge revaluations- - (251)(251)
Foreign currrency translation movements-- 25 25
Investment revaluations- - 8,805 8,805
Land and buildings revaluations- - 2,931 2,931
Reclassification of investment revaluations
on divestment
- 13,918 (13,918)-
Balance at 31 May 2024 (Audited)76,737 150,567 47,607 274,911
Key results and position
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD
For the six months ended 30 November 2024
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024 7

These financial statements set out the performance, position
and cash flows of Livestock Improvement Corporation Limited
("LIC" or the "Company") and its subsidiaries (the "Group") for
the six months ended 30 November 2024.
LIC is domiciled in New Zealand, registered under the
Companies Act 1993 and the Co-operative Companies Act 1996,
and listed on the Main Board of NZX Ltd.
LIC is an FMC Reporting Entity for the purposes of the Financial
Reporting Act 2013 and the Financial Markets Conduct Act 2013.
These financial statements should be read in conjunction with
the annual report for the year ended 31 May 2024.
Basis of preparation
i. Statement of compliance
These financial statements comply with NZ GAAP as
appropriate for Tier 1, for-profit entities, NZIFRS and IFRS.
ii. Basis of measurement
The financial statements have been prepared on a GST
exclusive basis, with the exception of trade receivables and
trade payables, which are reported inclusive of GST.

The majority of the Group's business does not follow a
clearly identifiable operating cycle, therefore the balance
sheet is presented in order of liquidity as it is more relevant
to the users of the financial statements.
iii. Functional and presentation currency
The functional currency of the Company and the
presentation currency of the financial statements is
New Zealand Dollars ("NZD"), with amounts rounded to
the nearest thousand.
iv. Use of estimates and judgements
The key estimations and judgements made in preparing
these financial statements are the valuation of the Bull
team and the impairment testing of software and other
intangible assets.
v. New or amended standards adopted in current year and
standards issued but not yet effective
Accounting policies have been applied consistently with
prior periods.
vi. Climate risk
Climate change and how farmer shareholders, regulators
and others respond may have significant impacts on the
Group’s future revenue and the recognised amounts of
assets and liabilities. While the effects of climate change
are a continuing source of uncertainty, climate-related
risks have been assessed as not having a material
impact on these financial statements. Reviews of
accounting estimates, judgements and impairment testing
assumptions have considered potential future impacts of
climate change.
Accounting policies
Accounting entity
8 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024

In thousands of New Zealand dollars
SIX MONTHS ENDED 30 NOV 2024
(Unaudited)
NZ market
genetics
Herd
testing
Farm
software
DiagnosticsOtherEliminationsTotal
External revenue106,841 17,653 29,155 15,664 16,353 - 185,666
Inter-segment revenue- - - - 1,639 (1,639)-
Total revenue106,841 17,653 29,155 15,664 17,992 (1,639)185,666
Depreciation & amortisation(1,011)(2,901)(952) (2,073) (6,616)- (13,553)
Segment gross profit before tax70,241 8,365 21,731 7,874 7,966- 116,177
Bull team revaluation7,512
Unallocated amounts(69,568)
Profit/(loss) before tax expense54,121
SIX MONTHS ENDED 30 NOV 2023
(Unaudited)
NZ market
genetics
Herd
testing
Farm
software
DiagnosticsOtherEliminationsTotal
External revenue99,406 15,287 27,085 14,811 15,360 - 171,949
Inter-segment revenue- - - - 1,525 (1,525)-
Total revenue99,406 15,287 27,085 14,811 16,885 (1,525)171,949
Depreciation & amortisation(945)(2,858)(591)(1,753)(5,211)- (11,358)
Segment gross profit before tax64,985 7,080 20,896 6,424 10,077 - 109,462
Bull team revaluation-
Unallocated amounts(69,120)
Profit/(loss) before tax expense40,342
Notes to the Financial Statements
1. Business analysis
The Group operates in four key operating segments as set out below, and across four key geographies. Figures in the following tables
reflect information regularly reported to the Chief Executive on those key operating segments:
−NZ market genetics: provides bovine genetic breeding material and related services, predominately to dairy farmers.
−Herd testing: herd testing, animal recording and on-farm support for dairy farmers.
−Farm software: data recording, tags and farm management information services.
−Diagnostics: provides DNA and animal health testing services.
NZ Market Genetics revenue is primarily recognised at a point in time, upon delivery of product to the customer. All other revenue lines
are primarily recognised over time, as the service to the customer is provided.
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024 9

Notes to the Financial Statements
1. Business analysis (cont.)
In thousands of New Zealand dollars
YEAR ENDED 31 MAY 2024 (Audited)
NZ market
genetics
Herd
testing
Farm
software
DiagnosticsOtherEliminationsTotal
External revenue110,689 39,831 54,187 29,314 33,267 - 267,288
Inter-segment revenue- - - - 7,830 (7,830)-
Total revenue110,689 39,831 54,187 29,314 41,097 (7,830)267,288
Depreciation & amortisation(1,922)(5,790)(1,336)(3,548)(11,451)- (24,047)
Segment gross profit before tax70,686 19,877 41,422 13,193 11,164 - 156,342
Bull team revaluation(8,768)
Unallocated amounts(133,792)
Profit/(loss) before tax expense13,782
The Other segment includes international operations, research & development and support services. Unallocated amounts
include personnel costs, other expenses and net finance costs, and are unallocated because the effort and cost involved to
accurately allocate these amounts to individual business segments would outweigh the benefit.
LIC's business, particularly the Parent's artificial breeding business, is highly seasonal. November results, since they
incorporate the majority of the artificial breeding revenues but not a similar proportion of total costs, are not indicative of the
second half result nor, therefore, the full year result.
The bull team is the cornerstone asset of LIC's genetics business. The bulls from which the bull team are selected are carried
at their fair value, which is based on LIC's modelling of future cash flows from the bulls (a "Level 3 valuation"). Changes in their
fair value are reported in profit/(loss) for the period. The fair value from the bulls is partly dependent on the future sales mix
of LIC's genetics products, which is historically strongly correlated to the Farmgate Milk Price paid by Fonterra Co-operative
Group. The valuation is also sensitive to changes in the WACC rate used to discount future cash flows and the run-off profile of
bulls (revenue attributable) that make up the bull team. Further information on the bull team and key drivers of the valuation is
available in the annual report for the year ended 31 May 2024.
2. Bull team
10 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024

Notes to the Financial Statements
3. Equity
All Ordinary Shares have voting rights and the right to receive dividends based on the profits of the Company.
At reporting date there were 142,344,836 Ordinary Shares on issue, excluding 5,337,584 shares held as treasury stock (2023: 142,344,836
Ordinary Shares, excluding 5,337,584 shares held as treasury stock).
*In the 2023 financial year, LIC sold it's shareholding in National Milk Records Plc for £9.019 million (NZD $18.963 million).
Associated accumulated revaluations were reclassified from Other reserves to Retained earnings on divestment.
Other reserves and equity
In thousands of New Zealand dollars
Hedge
revaluation reserve
Investment
revaluation reserve
Land & building
revaluation reserve
Foreign currency
translation reserve
Other
Reserves
Balance at 1 June 2024(80)1,456 46,291 (60)47,607
Revaluations304 251 - 116 671
Balance at 30 November 2024 (Unaudited)224 1,707 46,291 56 48,278
Balance at 1 June 2023171 6,569 43,360 (85)50,015
Revaluations(152)9,573 - (27)9,394
Reclassification of investment revaluations
on divestment*
- (13,918)- - (13,918)
Balance at 30 November 2023 (Unaudited)19 2,224 43,360 (112)45,491
Balance at 1 June 2023171 6,569 43,360 (85)50,015
Revaluations(251)8,805 2,931 25 11,510
Reclassification of investment revaluations
on divestment*
- (13,918)- - (13,918)
Balance at 31 May 2024 (Audited)(80)1,456 46,291 (60)47,607
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024 11

Notes to the Financial Statements
4. Acquisitions and disposals
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2024 30 Nov 202331 May 2024
UnauditedUnauditedAudited
(i) Land, buildings and equipment
Acquisitions *6,146 8,345 12,183
Disposals(86)(78)(126)
(ii) Software and other intangible assets
Acquisitions7,478 7,656 16,081
Disposals/Impairment- - -
*Excludes the impact of NZ IFRS 16: Leases, which increased Land, buildings and equipment by $2.898 million in 2024 (November 2023:
$3.608 million, May 2024: $5.638 million).
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2024 30 Nov 202331 May 2024
UnauditedUnauditedAudited
Remuneration of key Management and Directors2,480 2,745 4,960
Sale of goods and services to key Management and Directors650 329468
Purchases of goods and services from key Management and Directors- 3 3
The Group has had the following short term transactions with key Management and Directors during the period, noting sale of goods
and services were on normal trade terms:
5. Transactions with Related Parties, Directors and Management
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2024 30 Nov 202331 May 2024
UnauditedUnauditedAudited
Profit for the period 39,075 28,9817,734
Adjusted for non-cash items:
Depreciation and amortisation on all assets 13,553 11,358 24,047
Bull team revaluation (7,512) - 8,768
Deferred tax expense1,603 1,166 2,129
Working capital movements and other non-cash items (35,359) (38,136)(2,626)
Net operating cash flows11,360 3,369 40,052
6. Reconciliation of the Profit/(loss) for the period to Net operating cash flows
12 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024

Notes to the Financial Statements
7. Audit
In accordance with the Financial Reporting Act 2013 these interim financial statements are not required to be audited and
therefore, in line with previous years, have not been audited.
In relation to the 2024 financial year LIC declared a dividend of 5.84 cents per Ordinary Share, or $8.314 million (2023: 16.38 cents
per Ordinary Share, or $23.323 million). The fully imputed dividend was paid on 16 August 2024.
8. Dividend
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2024 13

605 Ruakura Road
Newstead 3286
Hamilton
New Zealand
07 856 0700 | lic.co.nz

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Results announcement
22 January 2025

Results for announcement to the market
Name of issuer Livestock Improvement Corporation Limited
Reporting Period 6 months to 30 November 2024
Previous Reporting Period 6 months to 30 November 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$185,666 +7.98%
Total Revenue $185,666 +7.98%
Net profit/(loss) from
continuing operations
$39,075 +34.83%
Total net profit/(loss) $39,075 +34.83%
Special Dividend
Amount per Quoted Equity
Security
No dividend has been declared
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date No applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.83 $1.92
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
These results reflect the highly seasonal nature of our business activity and are
not indicative of the second half, nor the full year result. For commentary on
the results, please refer to the market statement.

The Net Tangible Assets per Quoted Equity Security excludes LIC ordinary
shares held as treasury stock and unquoted LIC Nil Paid shares which have
the same voting and dividend rights as LIC’s quoted ordinary shares.

Authority for this announcement
Name of person

authorised
to make this announcement
Marise Winthrop
Contact person for this
announcement
Marise Winthrop
Contact phone number +64 27 488 4615
Contact email address Marise.Winthrop@lic.co.nz
Date of release through MAP

22 January 2025

Unaudited financial statements accompany this announcement.