Full Year Results 2024-25

MARKET STATEMENT
18 July 2025
LIC reports positive full year results with increased dividend for shareholders
Livestock Improvement Corporation (NZX: LIC) today announced a positive year-end financial
result as it continues to invest in innovations for its farmer shareholders. The co-operative is
ending the 2024/25 financial year with a solid profit and an increased dividend of 12.22 cents
per share.
Summary of financials*:
• Total Revenue: $295.1 million, up 10.4% from $267.3 million last year
• Net Profit After Tax (NPAT): $30.6 million, up significantly from $7.7 million last year
• Underlying Earnings: $21.7 million, up 56.9% from $13.9 million last year
• Dividend: $17.4 million – 12.22 cents per share, representing 80% of Underlying Earnings
• Total assets: $392.0 million, up 9.3% from $358.6 million last year
• Strong balance sheet with no debt at year-end

LIC Board Chair Corrigan Sowman says the co-operative is pleased to deliver such a positive
result for farmer owners, especially one which reflects the hard work that has been put in to
deliver value behind the farm gate.
“In the past 12 months we have seen Non-Return Rates (NRR) of our fresh sexed semen lift to
within 1% of conventional semen, we have had close to 1.5 million animals genotyped through
our GeneMark™ Genomics programme and we have continued to work with our industry
partners to increase the number of integrations available through our MINDA herd improvement
platform.”
“Whether it’s allowing farmers to generate more replacement heifers from their top performing
cows, increased certainty around parentage or reducing time spent on paperwork our co-
operative is focused on putting farmers and their herds at the heart of everything we do.”
Revenue has increased by 10.4% as farmer owners invested further into their herds and the co-
operative achieved a 14.8% improvement in underlying earnings, excluding the one-off negative
impacts of the semen quality issue and the tax deductibility on commercial buildings change
included in last year’s financial result.
Recent years’ investments in digital capability have resulted in a $4.0m increase in depreciation
and amortisation compared to last year and operating cashflows increased by $16.3m year on
year on the back of improved underlying earnings and prudent capital management.
The co-operative continued to invest into Research and Development, representing a 6.3%
increase on last year at $22.5m.
With robust underlying earnings of 15 cents per share and a strong cash position, the Directors
have declared a dividend of 12.22 cents per share, which equates to a fully imputed cash
distribution of $17.4m.

OUTLOOK
The co-operative expects underlying earnings for 2025/26 to be in the range of $18-22 million,
assuming no significant events, including climate events, or milk price change takes place
between now and then.
From the 2025/26 year, LIC is planning a multi-year investment into customer facing systems
and process improvements. This is an important initiative to replace aging systems and improve
customer experience, making the co-operative easier to work with. This investment is
predominantly into Software as a Service (SaaS) tools, the costs of which are generally
expensed as incurred, rather than amortised over future financial periods. For the purpose of
determining the underlying earnings of LIC, this expenditure will be excluded. Reported Net
Profit After Tax (NPAT) will be negatively impacted by the implementation costs incurred within a
given year.
The co-operative will also continue to invest in R&D with the next stage of its methane research
due to get underway in the last quarter of 2025.
ENDS
This statement has been authorised for release by the Board of Directors.
Contact
Shareholder enquiries: 0800 264 632
Media enquiries: Kellie Addison - Communications and Brand Engagement Manager
kellie.addison@lic.co.nz, phone 021 897 548
*Notes to Financial Information
These full-year financial results include the annual non-cash revaluations of LIC’s major biological asset, the bull team, and the
outstanding Nil Paid Ordinary Shares receivable, which are both required to reflect “fair value” under accounting standards. Figures
have been audited. These numbers should all be read in conjunction with the financial statements.
Underlying Earnings: This is LIC’s NPAT excluding bull valuation, nil paid share valuation movements and is considered useful to
investors as it is the basis on which LIC has historically reported and determined 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.
Nil Paid Ordinary Shares: These were issued to shareholders in 2018 as part of the share simplification process which brought
together LIC’s two previous classes of shares into one Ordinary Share. For each co-operative share held, one Fully Paid Ordinary
Share and three Nil Paid Ordinary Shares were issued. Nil Paid Ordinary Shares carry the same rights to dividends and voting as
Ordinary Shares but cannot be traded on the NZX until they are fully paid up. Dividends paid on remaining Nil Paid Shares are
automatically retained by LIC to pay down the remaining unpaid shares. LIC records an estimate of the fair value of the outstanding
Nil Paid Ordinary Shares receivable at balance date.
Bull team valuation: The annual non-cash revaluation of the co-operative’s largest biological asset was $101.2 million. This is up
from $88.9 million the previous year, mainly due to improved forecast activity levels in a higher milk price environment. The
valuation is based on an independent model that looks at future revenue streams and costs associated with the current bulls
owned, discounted back to current value.
Dividend: The fully imputed dividend declared represents 80% of underlying earnings.


About LIC
www.lic.co.nz

---

Distribution Notice

17 July 2025


Section 1: Issuer information
Name of issuer Livestock Improvement Corporation Limited
Financial product name/description Final Dividend
NZX ticker code LIC
ISIN NZLICE0001S1
Type of distribution

Full Year X Quarterly
Half Year Special
DRP applies X
Record date 1 August 2025
Ex-Date (one business day before the
Record Date)
31 July 2025
Payment date (and allotment date for
DRP)
15 August 2025
Total monies associated with the
distribution
$17,396,800.00
Source of distribution (for example,
retained earnings)
Profit
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.16974428 per share
Total cash distribution $0.12221588 per share
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount N/A
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
100%
Imputation tax credits per financial
product
$0.04752840 per share
Resident Withholding Tax per
financial product
$0.00848721 per share

Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
18 August 2025
Not known – dependent on
the time it takes to acquire
the shares on market.
Date strike price to be announced (if
not available at this time)
Not known at this stage. The price of the share will be
determined when all shares have been acquired. The
strike price under the DRP is the volume-weighted
average price per share paid on-market in acquiring
shares to fulfil demand under the DRP for the relevant
period. The period for acquisitions to fulfil demand under
the DRP is from the date noted above until the date that
is 20 Business Days before the next Record Date
(“Acquisition Period”).
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
Shares to be purchased on market
DRP strike price per financial product
The strike price under the DRP is the volume-weighted
average price per share paid on-market in acquiring
shares to fulfil demand under the DRP within the
Acquisition Period.
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
4 August 2025
Section 5: 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

17 July 2025

---

Results announcement
17 July 2025

Results for announcement to the market
Name of issuer Livestock Improvement Corporation Limited
Reporting Period 12 months to 31 May 2025
Previous Reporting Period 12 months to 31 May 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$295,107 +10.41%
Total Revenue $267,288 +10.41%
Net profit/(loss) from
continuing operations
$30,643 +296.21%
Total net profit/(loss) $30,643 +296.21%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.12221588 per share
Imputed amount per Quoted
Equity Security
$0.04752840 per share
Record Date 1 August 2025
Dividend Payment Date 15 August 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.77
$1.62
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
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.

Any dividends paid on LIC Nil Paid Shares and on any ordinary shares
required to be held to satisfy LIC’s share standard will be applied to repay
outstanding commitments on LIC Nil Paid 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

17 July 2025

Audited financial statements accompany this announcement.

---

Livestock Improvement
Corporation Limited (LIC)
Financial Statements
For the year ended 31 May 2025
There's always room for improvement

Contents
Key metrics 4
Financial trends 5
Directors' report 6
Key results and position 8
Our results for the year 8
Our position at year end 9
Our cash flows for the year 10
Changes in our position for the year 11
More details 12
Accounting policies 12
Business analysis 13
Our core assets 14
Our funding 18
Risk and Other assets 19
Tax 20
Other expenses and Other liabilities 21
Transactions with Related Parties, Cash flow
reconciliation and Subsequent events 22
Independent auditor's report 23

Key Metrics
Results at a glance
Underlying
earnings*
R&D expense
Operating
cashflow
Dividend
Revenue
Underlying earnings*
Return on equity
*Non-GAAP financial information
$
21.7
m
$
22.5
m
$
56.4
m
12.22c
$
295.1
m
7.3%
Net profit
after tax (NPAT)
Underlying earnings*
per share
$
30.6
m
15c
From $7.7m
From 10 cents
From $267.3m
From 5.0%
From $13.9m
From $21.2m
From $40.1m
From 5.84 cents
4 Livestock Improvement Corporation Financial Statements 2024/25

Financial Trends
These charts represent the key financial metrics for LIC to provide a
historical summary of our performance.
* Excludes discontinued operations - the Automation business was divested in June 2021.
** Non-GAAP financial information: excludes bull team and nil paid share revaluations and discontinued operations.
*** The full year dividend declared is paid in the subsequent year, while special dividends are paid within the year.
22.9
26.7
27.4
7.7
30.6
20212022202320242025
Net profit after tax ($m)*
0.16
0.18
0.17
0.10
0.15
20212022202320242025
Underlying earnings** per Share (cents)
22.3
25.7
23.7
13.9
21.7
20212022202320242025
Underlying earnings ($m)**
17.1
18.2
18.6
21.2
22.5
20212022202320242025
R&D Expense ($m)*
249.0
263.2
276.5
267.3
295.1
20212022202320242025
Revenue ($m)*
7.6%
8.8%
8.0%
5.0%
7.3%
20212022202320242025
Underlying earnings** Return on equity %
40.5
57.1
36.8
40.1
56.4
20212022202320242025
Operating cashflow ($m)*
12.51
28.43
16.38
18.84
12.22
Total Dividends (Cents Per Share)***
20212022202320242025
Full year dividend declaredSpecial dividend paid
Livestock Improvement Corporation Financial Statements 2024/25 5

Directors' Report 2024-25
LIC reports positive full year results with increased dividend for shareholders
The LIC Board announces a positive year-
end financial result as it continues to invest in
innovations for its farmer shareholders. The
co-operative ends the 2024-25 financial year
with a solid profit and Directors have declared a
dividend of 12.22 cents per share.
Summary of financials:
• Total Revenue: $295.1 million, up 10.4% from
$267.3 million last year
• Net Profit After Tax (NPAT): $30.6 million, up
significantly from $7.7 million last year
• Underlying Earnings: $21.7 million, up 56.9%
from $13.9 million last year
• Dividend: $17.4 million – 12.22 cents per share,
representing 80% of Underlying Earnings
• Total assets: $392.0 million, up 9.3% from
$358.6 million last year
• Strong balance sheet with no debt at year-end
The Board is pleased to deliver such a positive
result for farmer owners, especially one which
reflects the hard work that has been put in to
deliver value behind the farm gate. In the past
12 months we have seen Non-Return Rates
(NRR) of our fresh sexed semen lift to within
1% of conventional semen, we have had close
to 1.5 million animals genotyped through our
GeneMark™ Genomics programme and we have
continued to work with our industry partners to
increase the number of integrations available
through our MINDA herd improvement platform.
Whether it’s allowing farmers to generate more
replacement heifers from their top performing
cows, increased certainty around parentage
or reducing time spent on paperwork our co-
operative is focused on putting farmers and their
herds at the heart of everything we do.
Revenue has increased by 10.4% as farmer
owners invested further into their herds and the
co-operative achieved a 14.8% improvement
in underlying earnings, excluding the one-off
negative impacts of the semen quality issue and
the tax deductibility on commercial buildings
change included in last year’s financial result.
6 Livestock Improvement Corporation Financial Statements 2024/25

Recent years’ investments in digital capability
have resulted in a $4.0m increase in depreciation
and amortisation compared to last year and
operating cashflows increased by $16.3m year on
year on the back of improved underlying earnings
and prudent capital management.
The co-operative continued to invest into
Research and Development, representing a 6.3%
increase on last year at $22.5m.
With robust underlying earnings of 15 cents per
share and a strong cash position, the Board
declares an annual dividend of 12.22 cents per
share, which equates to a fully imputed cash
distribution of $17.4m.
Outlook
The co-operative expects underlying earnings
for 2025-26 to be in the range of $18-22 million,
assuming no significant events, including climate
events, or milk price change takes place between
now and then.
From the 2025-26 year, LIC is planning a
multi-year investment into customer facing
systems and process improvements. This is an
important initiative to replace aging systems and
improve customer experience, making the co-
operative easier to work with. This investment is
predominantly into Software as a Service (SaaS)
tools, the costs of which are generally expensed
as incurred, rather than amortised over future
financial periods. For the purpose of determining
the underlying earnings of LIC, this expenditure
will be excluded. Reported Net Profit After
Tax (NPAT) will be negatively impacted by the
implementation costs incurred within a given year.
The co-operative will also continue to invest in
R&D with the next stage of its methane research
due to get underway in the last quarter of 2025.
Livestock Improvement Corporation Financial Statements 2024/25 7

STATEMENT OF RESULTS FOR THE YEAR
For the year ended 31 May 2025
In thousands of New Zealand dollars
Note20252024
Revenue1295,107 267,288
Purchased materials(46,266)(41,255)
People costs(128,559)(119,758)
Depreciation and amortisation3,4,5(28,051)(24,047)
Other expenses10(65,217)(60,516)
Net finance income/(costs)924 647
Bull team revaluation212,292 (8,768)
Fair value change in Nil Paid Share receivable647 191
Profit/(loss) before tax expense40,277 13,782
Tax expense9(9,634)(6,048)
Profit/(loss) for the year30,643 7,734
Profit per Ordinary Share (excl. treasury stock) $0.22 $0.05
Other comprehensive income
Items that will not be reclassified to profit or loss
Investment revaluations6196 8,805
Land and buildings revaluations3,61,482 3,715
Tax effect of building revaluations9(348)(784)
Items that are or may be reclassified subsequently to profit or loss
Hedge revaluations6(208)(251)
Tax effect of hedge revaluations958 -
Foreign currency translation movements6(48)25
1,132 11,510
Comprehensive income for the year 31,775 19,244
Supplementary non-GAAP note to the results for the year:
Profit/(loss) for the year30,643 7,734
Plus/(less): Bull team revaluation(12,292)8,768
Tax effect on Bull team revaluation3,442 (2,455)
Less: Fair value change in Nil Paid Share receivable(47)(191)
Underlying earnings21,746 13,856
Underlying earnings per Ordinary Share (excl. treasury stock) $0.15 $0.10
Key Results and Position
8 Livestock Improvement Corporation Financial Statements 2024/25

Key results and position
STATEMENT OF POSITION FOR THE YEAR
As at 31 May 2025
In thousands of New Zealand dollars
Note20252024
Cash and cash equivalents57,127 42,341
Debtors836,705 34,952
Other assets822,774 26,557
Nil Paid Shares receivable6722 972
Bull team2101,164 88,872
Land, buildings and equipment - owned & leased3,5125,845 118,997
Software, goodwill and other intangible assets447,697 45,917
Total assets392,034 358,608
Creditors725,187 23,831
Borrowings7- -
Deferred tax933,323 30,645
Other liabilities1135,152 29,221
Total liabilities93,662 83,697
Net assets298,372 274,911
Share capital676,737 76,737
Retained earnings6172,896 150,567
Other reserves648,739 47,607
Total equity298,372 274,911
Director
Date: 17 July 2025
Director
Date: 17 July 2025
Livestock Improvement Corporation Financial Statements 2024/25 9

Key results and position
STATEMENT OF CASH FLOWS FOR THE YEAR
For the year ended 31 May 2025
In thousands of New Zealand dollars
Note20252024
Customer receipts289,434 264,919
Supplier payments(233,163)(223,940)
Net tax payments(382)(2,189)
Other operating cash flows498 1,262
Net operating cash flows1356,387 40,052
Software development(13,593)(16,097)
Net sales/(purchases) of land, buildings and equipment(14,216)(11,570)
Sale of investments- 19,130
Purchase of investments(8)(100)
Net investment cash flows(27,817)(8,637)
Payment of principal portion of lease liabilities(5,948)(5,408)
Nil Paid Share receipts78 165
Dividends paid(8,095)(38,446)
Net financing cash flows(13,965)(43,689)
Movement in cash for year14,605 (12,274)
Cash and cash equivalents at the beginning of the year42,341 54,596
Currency movement on cash holdings181 19
Cash and cash equivalents at end of the year57,127 42,341
Components of cash and cash equivalents include:
Cash1 1
Bank balances22,126 22,340
Term deposits35,000 20,000
10 Livestock Improvement Corporation Financial Statements 2024/25

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 year- 30,643 - 30,643
Dividends paid- (8,314)- (8,314)
Hedge revaluations- - (150)(150)
Foreign currency translation movements- - (48)(48)
Investment revaluations- - 196 196
Land and buildings revaluations3,6- - 1,134 1,134
Balance at 31 May 202576,737 172,896 48,739 298,372
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 currency translation movements- - 25 25
Investment revaluations- - 8,805 8,805
Land and buildings revaluations3,6- - 2,931 2,931
Reclassification of investment revaluations on
divestment
6-13,918 (13,918)-
Balance at 31 May 202476,737 150,567 47,607 274,911
Key results and position
STATEMENT OF CHANGES IN POSITION FOR THE YEAR
For the year ended 31 May 2025
Livestock Improvement Corporation Financial Statements 2024/25 11

More Details
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 year ended 31 May 2025.

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.
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
financial statements have been prepared on a historical
cost basis, except for the Bull team, Land & Buildings and
Investments, which are all measured at fair value.
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. No new or amended standards were
adopted in the current year that had a significant impact.
NZ IFRS 18 Presentation and Disclosure in Financial
Statements is effective for the year ending 31 May 2028
and will impact the presentation of the Statement of
Results for the Year, with an allocation of income and
expenses between operating, investing and financing
categories, and new sub-totals such as Operating profit.
Financial performance measures used to explain the
Group financial performance in public communications
outside the financial statements will also be required to
be disclosed, and there is enhanced guidance on the
aggregation and disaggregation of information. The Group
is assessing the effect of applying NZ IFRS 18.
vi. Climate risk
Climate change and how farmer shareholders, regulators
and others respond may have an impact 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
(including the valuation of the bull team in Note 2, and
the valuation of land and buildings in Note 3), judgements
and impairment testing assumptions (refer to note 4) have
considered potential future impacts of climate change.
Accounting policies

Accounting entity
12 Livestock Improvement Corporation Financial Statements 2024/25

(i) Operating segments
The Group operates in four key operating segments, and across four key geographies as set out below. The information below reflects
the 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
• Testing: herd testing, on-farm support and DNA and animal health testing services
• Farm software: data recording, tags and farm management information services
• International: provides bovine genetic breeding material and related services to offshore markets
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.
In thousands of New Zealand dollars
2025
NZ market
genetics
Testing
Farm
software
InternationalOtherEliminationsTotal
External revenue119,933 79,442 61,800 16,037 17,895 - 295,107
Inter-segment revenue- - - - 2,133 (2,133)-
Total revenue119,933 79,442 61,800 16,037 20,028 (2,133)295,107
Depreciation & amortisation(3,476)(10,377)(3,742)(169)(10,287)- (28,051)
Segment gross profit before tax31,138 11,609 33,232 2,963 2,263 - 81,205
Bull team revaluation12,292
Unallocated amounts(53,220)
Profit/(loss) before tax expense40,277
2024
NZ market
genetics
Testing
Farm
software
InternationalOtherEliminationsTotal
External revenue110,784 69,415 56,437 15,050 15,602 - 267,288
Inter-segment revenue- - - - 2,247 (2,247)-
Total revenue110,784 69,415 56,437 15,050 17,849 (2,247)267,288
Depreciation & amortisation(3,465)(9,752)(3,383)(157)(7,290)- (24,047)
Segment gross profit before tax27,966 6,026 31,477 1,901 1,675 - 69,045
Bull team revaluation(8,768)
Unallocated amounts(46,495)
Profit/(loss) before tax expense13,782
The Other operating segment includes research & development and support services. Unallocated amounts include personnel costs,
other expenses and net finance costs. Operating segments have been updated, including comparatives, to more closely align with
LIC's strategy. The changes consolidate LIC's testing services and provide greater insight on the performance of LIC's international
business.
Notes to the Financial Statements
1. Business analysis
Livestock Improvement Corporation Financial Statements 2024/25 13

Notes to the Financial Statements
1. Business analysis (cont.)
Key drivers of the model:
Forecasted Fonterra Farmgate Milk Price*$9.50$8.85
WACC annualised post tax rate7.25% - 8.74%8.11% - 8.76%
Number of bulls in the team122124
Average % of run-off profile (years 2-5)45%42%
*This is the short term Milk Price outlook.
(ii) Geographic analysis
In thousands of New Zealand dollars
2025
New ZealandAustraliaIrelandUKOtherTotal
Revenues275,211 8,857 4,049 2,961 4,029 295,107
Non-current assets274,888 4,560 1,075 51 - 280,574
2024
Revenues248,420 8,999 3,545 2,337 3,987 267,288
Non-current assets254,087 4,397 1,157 59 - 259,700
2. Bull Team
The bull team is the cornerstone asset of LIC's genetics business. The 826 total bulls (2024: 810 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 year. The fair value from the bulls is partly dependent
on the future sales mix of LIC's genetics products, which correlates to movements in the cow population and Farmgate Milk
Price. The valuation is also sensitive to a change 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.
Non-current assets includes the Bull team, Land, buildings & equipment, Software, goodwill and other intangible assets, Nil Paid Share
receivable and investments.
The Group's significant subsidiaries are:
• New Zealand: LIC Agritechnology Company Limited (100%)
• Australia: Livestock Improvement Pty Ltd (100%), Beacon Automation Pty Ltd (100%)
• Ireland: LIC Ireland Limited (100%)
• United Kingdom: Livestock Improvement Corporation (UK) Ltd (100%)
The Group is not dependent on any one major customer in any of its reportable segments. New Zealand revenues include government
grants and R&D tax incentive income of $7.685 million (2024: $8.179 million).
In thousands of New Zealand dollars
20252024
Opening balance88,872 97,640
Bull team revaluation12,292(8,768)
Closing balance101,164 88,872
The impact on the fair value of a change to these key drivers is summarised below:
Change in the bull run-off profile $8.4m - average of a 5% shift across years 2-5
Reduction of 5% in sales demand (due to unforeseen reduction in milk price,
cow population or other significant events)
$7.4m$3.1m
WACC moves 100 basis points$3.0m$2.5m
14 Livestock Improvement Corporation Financial Statements 2024/25

In thousands of New Zealand dollars
20252024
Land BuildingsEquipmentTotalLand BuildingsEquipmentTotal
Opening balance38,733 55,701 24,563 118,997 37,990 51,500 24,057 113,547
Additions- 5,133 9,532 14,665 - 4,852 7,331 12,183
Disposals- (451)(73)(524)- -(126)(126)
Depreciation- (3,362)(7,158)(10,520)- (3,048)(6,906)(9,954)
Revaluation360 1,232 - 1,592 743 2,650 - 3,393
Foreign exchange- - 18 18 - -(2)(2)
Right of use leased assets
movement - note 5
- 2,426 (809)1,617 - (253)209 (44)
Closing balance39,093 60,679 26,073 125,845 38,733 55,701 24,563 118,997
Value if carried at cost11,726 24,456 N/A 11,726 23,135 N/A
Estimated useful lives N/A 10-60 years 3-10 years N/A 10-60 years 3-10 years
Land and buildings are carried at fair value, determined by an independent valuer as at April 2025 (most recent full valuation as at
April 2024). Fair value is based on comparable sales for land and based on depreciated replacement cost for buildings. Revaluations
are primarily reflected in the revaluation reserve. Equipment includes plant, vehicles, furniture and fittings and IT hardware, and is
carried at depreciated cost. Buildings and equipment are depreciated on a straight-line basis over their estimated useful lives, and
are reviewed annually for any indications of impairment.
4. Software and other intangibles
(i) Software and other intangible asset balances
Software development expenditure is capitalised only where costs are directly attributable, and once the product or process is
commercially feasible, the benefits are probable, and the Group intends to sell or use the completed software.
Software assets are amortised over their useful lives of up to seven years on a straight line basis, and are reviewed annually for
indicators of impairment.
Intellectual property (IP) assets are amortised over their estimated useful lives of up to 13 years.
The genetic data in the LIC database increases with each successive generation. Both goodwill and the LIC database have indefinite
useful lives. They are recognised at cost and are not amortised, are allocated to a cash generating unit ("CGU") and tested for
impairment annually.
Notes to the Financial Statements
3. Land, buildings and equipment
In thousands of New Zealand dollars
20252024
Software
& IP
GoodwillDatabaseTotal
Software
& IP
GoodwillDatabaseTotal
Opening balance33,046 2,371 10,500 45,917 25,798 2,363 10,500 38,661
Additions13,808 - - 13,808 16,081 - - 16,081
Disposals/impairment(183)- - (183)- - - -
Amortisation(11,813)- - (11,813)(8,842)- - (8,842)
Foreign exchange(20)(12)- (32)9 8 - 17
Closing balance34,838 2,359 10,500 47,697 33,046 2,371 10,500 45,917
Livestock Improvement Corporation Financial Statements 2024/25 15

Notes to the Financial Statements
4. Software and other intangibles (cont.)
In thousands of New Zealand dollars
20252024
NZ Market Genetics,
Farm software and
Testing CGU
International
CGU
Total
NZ Market Genetics,
Farm software and
Testing CGU
International
CGU
Total
LIC database10,500 - 10,500 10,500 - 10,500
Goodwill- 2,359 2,359 - 2,371 2,371
Total10,500 2,359 12,859 10,500 2,371 12,871
At reporting date, software includes $8.024 million (2024: $11.595 million) of work in progress, which is not being amortised until it is
ready for use.
(ii) Impairment testing of intangible assets
Allocation of Goodwill and the LIC Database to CGUs:
International CGU relates to two separate CGU's - LIC Ireland and Beacon Automation. The LIC database and each of the
International CGU Goodwill recoverable amounts have been separately tested using a value in use method.
For the LIC database and International CGU Goodwill, a discounted cash flow model is used for impairment testing based on expected
results and capital expenditure from the current year forecast, Board approved budgets and a projection for further periods using
a terminal growth rate. A five year cash flow projection period is used. The terminal growth rate used is 1.5% (2024: 1.5%) for the LIC
database and International CGU Goodwill. The discount rate applied is reviewed and updated annually for movements in published
Treasury risk-free rates and is 8.5-10.6% for the LIC database and International CGU Goodwill (2024: 8.7-10.9% for the LIC database
and International CGU Goodwill).
(i) LIC as a lessee
The Group has lease contracts for buildings, equipment and vehicles used in its operations. The Group’s obligations under its leases
are secured by the lessor’s title to the leased assets. Several lease contracts include extension and termination options. The Group's
discount or incremental borrowing rate applicable to leases is 5.2% (2024: 5.1%).
The Group also has certain leases of machinery with lease terms of 12-months or less and leases of office equipment with low value.
The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.
5. Leases
16 Livestock Improvement Corporation Financial Statements 2024/25

Notes to the Financial Statements
5. Leases (cont.)
Lease liabilities
Set out below are the carrying amounts of lease liabilities recognised at 31 May (included in Other liabilities):
The Group had total non-variable cash outflows for leases of $6.782 million in 2025 ($6.086 million in 2024).
(iii) Lease related amounts in the Statement of Results
(ii) Lease balances in the Statement of Position
Right of use assets
Set out below are the carrying amounts of right-of-use assets recognised (under Land, buildings and equipment) and the movements
during the period:
In thousands of New Zealand dollars
20252024
Buildings EquipmentVehiclesTotalBuildings EquipmentVehiclesTotal
Opening Balance12,399 385 7,327 20,111 12,652 180 7,323 20,155
Depreciation(1,591)(166)(3,961)(5,718)(1,471)(142)(3,638)(5,251)
Additions4,010 337 3,216 7,563 1,420 347 3,871 5,638
Disposals/modifications7 (139)(96)(228)(202)- (229)(431)
Closing balance14,825 417 6,486 21,728 12,399 385 7,327 20,111
Lease terms 3-28 years 1-9 years 1-7 years 2-28 years 2-5 years 2-8 years
In thousands of New Zealand dollars
20252024
Buildings EquipmentVehiclesTotalBuildings EquipmentVehiclesTotal
Within 1 year1,490 164 3,390 5,044 1,341 72 3,549 4,962
Between 1 to 5 years6,017 262 3,403 9,682 4,612 161 4,301 9,074
More than 5 years8,587 - - 8,587 7,662 - - 7,662
Closing balance16,094 426 6,793 23,313 13,615 233 7,850 21,698
In thousands of New Zealand dollars
20252024
Buildings EquipmentVehiclesTotalBuildings EquipmentVehiclesTotal
Depreciation1,591 166 3,961 5,718 1,471 142 3,638 5,251
Interest expense636 24 489 1,149 621 17 479 1,117
Variable lease payments- - 852 852 - - 980 980
Short-term and low-value leases- 7 - 7 - 1 - 1
Total amount 2,227 197 5,302 7,726 2,092 160 5,097 7,349
Livestock Improvement Corporation Financial Statements 2024/25 17

Notes to the Financial Statements
6. Funding
The Group's funding comes from Share Capital, Retained earnings, Other reserves and Borrowings.
(i) Ordinary Shares
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
(2024: 142,344,836 Ordinary Shares, excluding 5,337,584 shares held as treasury stock).
(ii) Nil Paid Shares
Ordinary Shares includes both fully paid shares and shares on which full payment has not yet been made. These Nil Paid Shares must
be paid up over time by Shareholders via a combination of dividend payments forgone, voluntary payments and payments made
on exit as a Shareholder. At year-end the outstanding amount on Nil Paid Shares has been recorded in the Statement of Position
as a receivable, valued at $0.722 million (2024: $0.972 million) using a discounted cash flow model. The model uses assumptions on
expected future dividends, voluntary and compulsory payments and applies a discount rate of 6.5% (2024: 8.6%).
(iv) Market capitalisation
As at 31 May 2025, the Group's market capitalisation of $134.501 million (2024: $172.365 million) was below the carrying value of net
assets of $298.372 million (2024: $274.911 million). The share price is not considered an accurate reflection of the fair value of the
Group's net assets for a number of reasons, including the nature of the co-operative and its restricted capital structure. Accounting
standards consider market capitalisation below net assets to be an indicator of possible impairment and an impairment test has
therefore been performed. The Group recoverable amount has been determined using a value in use method as with the impairment
tests in Note 4, a discounted cash flow model has been used based on Board approved budgets and a projection covering five
years using a terminal growth rate of 1.5% (2024: 1.5%). The discount rate applied is reviewed and updated annually for movements
in published Treasury risk-free rates and is 8.5% (2024: 8.7%). The calculated recoverable amount of the group was higher than the
carrying value of the net assets, and therefore no impairment was recognised.
(v) Bank debt
Bank loans for seasonal funding requirements are secured by a Negative Pledge granted to Westpac and Rabobank over certain
New Zealand-based subsidiaries.
(iii) 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
Revaluations(150)196 1,134 (48)1,132
Balance at 31 May 2025(230)1,652 47,425 (108)48,739
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(80)1,456 46,291 (60)47,607
*In the 2024 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.
18 Livestock Improvement Corporation Financial Statements 2024/25

Notes to the Financial Statements
7. Liquidity and interest rate risk
(i) Debtors
Bad debts of $0.053 million have been expensed during the year (2024: $0.020 million), and 91.3% of trade receivables are not past
due (2024: 87.8%).
(ii) Interest rate risk
Interest rate risk is the risk that changes in interest rates will impact the Group's results or position. The weighted average effective
interest rate paid on borrowings in 2025 was 6.5% (2024: 7.3%). A 1.0% increase in interest rates would increase interest paid and
reduce profit after tax by approximately $0.018 million (2024: $0.001 million).
(i) Liquidity risk
Liquidity risk is the risk of having insufficient liquid assets to pay the Group's debts as they fall due. The Group manages the risk
by monitoring forecast cash flows and holding sufficient bank facilities to meet the Group's needs. The contractual maturity of the
Group's funding is shown below.
The Group has bank funding facilities in place until February 2026 and expects to be able to meet any obligations which fall due.
In thousands of New Zealand dollars
20252024
Demand to
6 months
6 months
to 1 year
1 year
plus
Total
Demand to
6 months
6 months
to 1 year
1 year
plus
Total
Creditors25,187 - - 25,187 23,831 - - 23,831
Total25,187 - - 25,187 23,831 - - 23,831
(ii) Other assets
Inventories utilised and expensed during the period amounted to $31.613 million (2024: $29.176 million). Net inventories written
on in 2025 totalled $0.201 million (2024: $0.095 million written off), and comprised of $0.396 million of stock written off and
$0.597 million of previously written off stock written back on into inventory.
Investments are non-current assets and are held at fair values based on available share prices and other market information.
Gains and losses are recognised in other comprehensive income, as investments are not held for trading. Investments include
Figured Limited $3.358 million (2024: $3.358 million).
In thousands of New Zealand dollars
20252024
Inventories16,703 20,808
Investments5,145 4,941
Other livestock926 808
Total22,774 26,557
8. Debtors and other assets
Livestock Improvement Corporation Financial Statements 2024/25 19

Notes to the Financial Statements
9. Tax
Tax expense is recognised for items arising this year that are either taxable this year (current tax) or in other years (deferred tax).
The main items giving rise to deferred tax are revaluations of the Bull team and Buildings.
(i) Tax expense
In March 2024, legislation was enacted which removed the deductibility of depreciation on long-life commercial buildings for tax
purposes.  At 31 May 2024, the impact of this change decreased the tax base for these assets, giving rise to an increased temporary
difference between the carrying cost and tax base and resulted in a one-off, non-cash, increase in both deferred tax liability and tax
expense of $3.643 million.
Given the Group's current turnover, and the lack of significant operations in foreign jurisdictions with tax rates below 15%, it does not
expect to be impacted by Pillar II tax reforms and the move towards global minimum tax rates of 15%.
LIC claims credits under the R&D Tax Incentive scheme. Claims include eligible core research expenditure and technology
development, as well as expenses that support R&D, and the credits are recorded as non-taxable revenue.
In thousands of New Zealand dollars
20252024
Profit/(loss) for the year30,6437,734
Tax expense9,634 6,048
Profit/(loss) before tax expense40,277 13,782
Tax at 28% NZ company tax rate11,278 3,859
Effect of overseas income(93)(34)
Non-deductible items(1,449)(521)
Adjustments from prior periods(102)(899)
Impact of changes to building depreciation- 3,643
Tax expense9,634 6,048
Current tax expense7,2463,919
Deferred tax expense2,388 2,129
Imputation credits available13,1179,468
In thousands of
New Zealand dollars
As at 31 May
2025
Through
Profit/(loss)
Through
Other reserves
As at 31 May
2024
Through
Profit/(loss)
Through
Other reserves
As at
31 May 2023
Bull team & livestock27,741 3,320 - 24,421 (2,414)- 26,835
Buildings & equipment
6,433 235 348 5,850 3,304 784 1,762
Intangible assets
2,940 - - 2,940 1,480 - 1,460
Other
(3,791)(1,167)(58)(2,566)(241)- (2,325)
Total33,323 2,388 290 30,645 2,129 784 27,732
(ii) Deferred tax liability
20 Livestock Improvement Corporation Financial Statements 2024/25

Notes to the Financial Statements
10. Other expenses
Other expenses includes the following amounts paid to the Group's auditors, KPMG:
The provision for sire proving rebate represents a rolling three years of expected rebate payments, with between $0.8 - $1.0 million
due to be paid in each of the next three years, discounted to 31 May 2025.
In thousands of New Zealand dollars
20252024
Provisions for employee entitlements10,194 7,596
Provision for sire proving rebate2,441 2,522
Derivatives used for hedging295 87
Provision for tax(1,712)(3,259)
Lease liabilities - current5,044 4,962
Lease liabilities - non-current18,269 16,736
Other621 577
Total35,15229,221
11. Other liabilities
In thousands of New Zealand dollars
20252024
Research & Development expenses22,549 21,215
As part of business activities, LIC incurs research and development expenses while working on a number of projects.
*Agreed upon procedures relate to the R&D Tax Incentive scheme and disclosure of historical financial data in the sustainability report.
In thousands of New Zealand dollars20252024
Audit and audit related services
Audit of the financial statements232 222
Agreed upon procedures*
26 24
GHG scope 1 & 2 assurance as it relates to year end
25 -
Total audit and audit related services283246
Tax - compliance services78-
Total361 246
Livestock Improvement Corporation Financial Statements 2024/25 21

In thousands of New Zealand dollars
20252024
Remuneration of key Management and Directors 4,622 4,960
Sale of goods and services to key Management and Directors996 468
Purchases of goods and services from key Management and Directors- 3
Notes to the Financial Statements
12. Transactions with Related Parties - Directors and Management
After 31 May 2025, a dividend of 12.22 cents per Ordinary Share was proposed by the Directors in relation to the 2025 year, or $17.397
million (2024: 5.84 cents per Ordinary Share, or $8.314 million).
14. Subsequent events
Directors of the Company and their related entities hold 617,474 Ordinary Shares, representing 0.42% of shares on issue (2024: 378,001
Ordinary Shares, representing 0.26%).
There are no loans or deposits with related entities outside of the consolidated Group.
The Group has had the following short-term transactions with key Management and Directors during the year:
13. Reconciliation of the Profit/(loss) for the year to Net operating cash flows
In thousands of New Zealand dollars
20252024
Profit/(loss) for the year30,643 7,734
Adjusted for:
Depreciation and amortisation on all assets28,051 24,047
Bull team revaluation(12,292)8,768
Deferred tax expense2,388 2,129
Working capital movements and other non-cash items7,597 (2,626)
Net operating cash flows56,387 40,052
22 Livestock Improvement Corporation Financial Statements 2024/25

© 2025 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
Independent Auditor’s Report
To the shareholders of Livestock Improvement Corporation Limited
Report on the audit of the consolidated financial statements
Opinion
We have audited the accompanying consolidated
financial statements which comprise:
­ the consolidated statement of financial
position as at 31 May 2025;
­ the consolidated statements of results,
changes in position and cash flows for the
year then ended; and
­ notes, including material accounting policy
information and other explanatory information.
In our opinion, the accompanying consolidated
financial statements of Livestock Improvement
Corporation Limited (the Company) and its
subsidiaries (the Group) on pages 8 to 22 present
fairly in all material respects:
­ the Group’s financial position as at 31 May
2025 and its financial performance and cash
flows for the year ended on that date;
­ In accordance with New Zealand Equivalents
to International Financial Reporting
Standards (NZ IFRS) issued by the New
Zealand Accounting Standards Board and
the International Financial Reporting
Standards issued by the International
Accounting Standards Board.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Livestock Improvement Corporation Limited in accordance wit h Professional and Ethical
Standard 1 International Code of E thics for Assurance Practitioners (Including International Independence
Standards) (New Zealand) issued by the New Zealand Auditi ng and Assurance Standards Boar d and the
International Ethics Standards Boar d for Accountants’ International Cod e of E thics for Professional Accountants
(including International Independence Standards) (IESBA Code), as applicable to audits of financial statements
of p ublic interest entities. We hav e als o fulfill ed our other ethical responsibilities in accordance wit h Professional
and Ethical Standards 1 and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for t he audit of the
consolidated financial statements section of our report.
Our firm has provided other services to the Group in relation to assurance services, agreed upon procedures
engagements, and taxation compliance services for the R&D tax incentive scheme. Subject to certain
restrictions, partners and employees of our firm may also deal with the G roup on normal terms within the
ordinary course of t rading activities of t he business of t he Group. These matters have not impaired our
independence as auditor of t he Group. The firm has no other relationship with, or interest in, t he Group.
Livestock Improvement Corporation Financial Statements 2024/25 23
Independent Auditor's Report
Livestock Improvement Corporation Financial Statements 2024/25 23

Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial statements
as a whole was set at $1,310,000 determined with reference to a benchmark of the Group’s profit/(loss) for the
year before tax (excluding bull team revaluation movements). We chose the benchmark because, in our view,
this is a key measure of the Group’s performance.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements in the current period. We summarise below those matters and our key audit
procedures to address those matters in order that the shareholders as a body may better understand the process
by which we arrived at our audit opinion.
Our procedures were undertaken in the context of and solely for the purpose of our audit opinion on the
consolidated financial statements as a whole and we do not express discrete opinions on separate elements of
the consolidated financial statements.
The key audit matter How the matter was addressed in our
audit
Valuation of the Bull Team
Refer to Note 2 to the Financial Statements.
Determining the valuation of the bull team,
which is the core asset to both the domestic
and international genetics operations of the
Group, is a highly judgemental and complex
area. Management prepares a model that
projects the number and types of straws that
the current team can produce and will be sold
over the useful life of the bulls. The valuation
model factors the cost of rearing, animal and
farm management costs, and forecasts of
processing costs to make sales. The calculated
surplus is discounted to reflect the time value of
money.
Our audit procedures included challenge of management’s
significant assumptions such as:
‒ Projected sales volumes and pricing;
‒ Discount rates applied; and
‒ Runoff Profile of the bulls.
We compared sales and costs growth, and inflation rates to
historical data and published market forecast data where
available.
We utilised our valuation specialists to review market and
industry data to assess management’s discount rate applied
to the valuation model.
We assessed the runoff profile of the bulls against historical
data and found the inputs to be comparable.
We c onsidered the adequacy of the related financial
statement disclosures.
We had no matters to report as a result of our procedures.
Carrying Value of Intangible Assets
Refer to Note 4 to the Financial Statements
The Group has a Database intangible asset of
$10.5m with an indefinite useful life.
The significant cash generating unit (CGU)
holding this asset is tested twice a year for
We challenged management on the reasonableness of the
assumptions included in the cashflow forecast models, with
particular attention paid to the following:
‒ Assessing management’s future sales and growth
assumptions compared to external market and industry
data and historical performance of the CGU and the
24Livestock Improvement Corporation Financial Statements 2024/25
24 Livestock Improvement Corporation Financial Statements 2024/25

The key audit matter How the matter was addressed in our
audit
impairment using a discounted cashflow model
to determine the recoverable amount.
The market capitalisation deficit that exists at
balance date is an indicator of impairment at a
Group level and has therefore been tested for
impairment using a discounted cashflow model
to determine the recoverable amount of the
Group.
The annual impairment tests performed by the
Group were significant to our audit due to the
magnitude of the intangible assets and because
the discounted cashflow models involve
judgement about the future performance of the
CGU and the Group, including considering
future economic and market conditions.
Group. We used our own valuation specialists to assist
us with the consideration of the discount rates;
‒ Comparing management’s previous forecasts to actual
results achieved in the CGU and the Group; and
‒ Performing sensitivity analysis around the key
assumptions used in the model.
We had no matters to report as a result of our procedures.
Other information
The directors, on behalf of the Group, are responsible for the other information. The other information comprises
the Key Metrics, Financial Trends and the Directors Report (but does not include the consolidated financial
statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report, and the
Annual Report, which is expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover any other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
When we read the Annual Report , if we conclude that there is a material misstatement therein, we are required to
communicate the matter to directors.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders. Our audit work has been undertaken so
that we might state to the shareholders those matters we are required to state to them in the independent
auditor’s report and for no other purpose. To the fullest extent permitted by law, none of KPMG, any entities
directly or indirectly controlled by KPMG, or any of their respective members or employees, accept or assume
any responsibility and deny all liability to anyone other than the shareholders for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Livestock Improvement Corporation Financial Statements 2024/25 25
Livestock Improvement Corporation Financial Statements 2024/25 25

Responsibilities of directors for the consolidated financial
statements
The directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with NZ
IFRS issued by the New Zealand Accounting Standards Board and the International Financial Reporting
Standards issued by the International Accounting Standards Board;
— i mplementing the necessary internal control to enable the preparation of a consolidated set of financial
statements that is free from material misstatement, whether due to fraud or error; and
— assessing the ability of the Group to continue as a going concern. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
they either intend to liquidate or to cease operations or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objective is:
— to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but it is not a guarantee that an audit conducted in
accordance with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the
consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is located at the
External Reporting Board (XRB) website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor’s report is David Gates.
For and on behalf of:
KPMG
Wellington
17 Jul y 2025
26Livestock Improvement Corporation Financial Statements 2024/25
26 Livestock Improvement Corporation Financial Statements 2024/25

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