NZ King Salmon Investments Ltd releases FY25 (Sept) results
27 November 2025
NZK - NEW ZEALAND KING SALMON INVESTMENTS LIMITED ANNOUNCES FY25 (SEPT) RESULT
New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the 8
months ended 30 September 2025 (FY25 Sept). Key points include:
• Net loss for the period: $6.3m (8 months ended 30 September 2025), compared to a profit of
$13.4m for the year ended 31 January 2025
• Pro-forma EBITDA: $7.1m (8 months ended 30 September 2025), compared to $29.7m for the year
ended 31 January 2025
• Sales volumes: decreased from 6,582 MT (12 months to 31 January 2025) to 3,260 MT (8 months
ended 30 September 2025)
• Revenue: decreased from $210.9m (12 months to 31 January 2025) to $117.7m (8 months ended 30
September 2025)
FY26 guidance:
o Pro-forma EBIT with a range of ($3m loss) to $3m profit
o Pro-forma EBITDA with a range of $9 to $15m
o Harvest G&G volume with a range of 5.5 MT to 5.9 MT
o Capex with a range of $28m to $36m
New Zealand King Salmon Chair, Mark Dewdney, said: “The results are the first under our revised 30
September balance date, which reflect a shortened eight-month reporting period. It has been an extremely
busy eight months for the company. Despite facing some challenges with fish performance over the 24/25
summer, we have made significant strides by strategically investing in our future growth.”
“While this period’s adapted farming strategy was not quite as successful as the previous two, stepping back
and looking at progress over a longer time horizon it is promising to see the decisions made three years ago
have helped reduce our volatility when we experienced biological challenges. In addition, the decision to
reduce harvest volumes in May has worked as intended with biomass at sea rebuilding as forecast. The Board
remains pleased with the progress being made to both further strengthen our core, while preparing for well-
measured and well-sequenced, growth,” says Dewdney.
New Zealand King Salmon Chief Executive Officer, Carl Carrington, said: “We have several initiatives
underway to strengthen our core business and improve fish health and performance, some of which are
already yielding meaningful results.”
“Although the mooring grid installation is behind schedule, as a Company we remain confident it will be
complete in early 2026 and we will have our salmon at this site next year. The mooring grid, although
important, is only part of a wider programme of work. We have achieved significant growth in a range of key
infrastructure projects, including the Westshore Warehouse feed storage project with Port Marlborough, and
the acquisition of the Cloudy Bay site to support future processing needs. The planning and delivery of our
growth plan this period has been significant. We are a compelling primary sector growth story, ready to grow,”
says Carrington.
Authorised by:
Board of Directors of New Zealand King Salmon Investments Limited
ENDS
For investor or analyst queries, please contact:
Carl Carrington, Chief Executive Officer, carl.carrington@kingsalmon.co.nz
Ben Rodgers, Chief Financial Officer and Company Secretary, ben.rodgers@kingsalmon.co.nz
For additional information refer to our investor presentation located here: Investor Centre Reports & Results
---
NZK
Results announcement
30 September 2025
Results for announcement to the market
Name of issuer New Zealand King Salmon Investments Limited
Reporting Period 8 months to 30 September 2025
Previous Reporting Period 12 months to 31 January 2025
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$117,719 (44%)
Total Revenue $117,719 (44%)
Net loss from continuing
operations
($ 6,327) <>
Total net loss ($ 6,327) <>
Interim/Final Dividend
Amount per Quoted Equity
Security
Nil
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.37 $0.37
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Authority for this announcement
Name of person
authorised
to make this announcement
Ben Rodgers
Contact person for this
announcement
Ben Rodgers
Contact phone number 03 548 5714
Contact email address Ben.rodgers@kingsalmon.co.nz
Date of release through MAP
27/11/2025
Audited financial statements accompany this announcement. Pursuant to ASX Listing
Rule 1.15.3, New Zealand King Salmon Investments Limited confirms that it continues
to comply with the rules of its home exchange (the NZX Main Board)
---
FOR THE PERIOD ENDED 30 SEPTEMBER 2025
Annual Report
Contents
Overview .................................................3
Healthy Economies ..................................18
Healthy Environments ..............................24
Healthy Relationships ..............................28
Healthy Communities ..............................31
Healthy Kai .............................................35
Leadership & Corporate Governance ...........40
Financial Statements ...............................84
The Annual Report is dated 27 November 2025 and signed on
behalf of the Board by:
Paul Munro
Chair — Audit, Finance, Risk and
Project Development Committee
Mark Dewdney
Chair
Tentburn hatchery
Cover image: Our two Blue Endeavour pilot pens being towed to Waihinau, Te Hoiere/Pelorus Sound
2
New Zealand King SalmonAnnual Report FY25 (Sept) — Annual ReportContents
Overview
3New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Overview
Chair and CEO Report
Setting the Stage for Long-term Success
This reporting period has been transformative for New Zealand
King Salmon (NZKS). Despite facing challenges with fish
performance, we have made significant strides by strategically
investing in our future growth. Our efforts have laid a solid
foundation for the years ahead.
This Annual Report is concise due to our transition to a 30
September balance date, covering an eight-month reporting
period from 1 February 2025 to 30 September 2025 (‘the
period’). This change allows us to do our year end reporting
at a time where business performance is most predictable.
Volatility remains a constant in the primary sector, and even
moderate changes in biomass can have wide-reaching
impacts at our current scale, as we have experienced
this reporting period. Our priority is to strengthen core
business operations, including fish performance, while
preparing for significant expansion.
We remain confident in our growth plan, though scalability
depends on the careful sequencing of investments and
initiatives. This report details our ongoing efforts to
strengthen existing operations, investments made and
delivered this period, and a look into the future at our
upcoming developments.
Our focus is on strengthening our core
business in preparation for significant growth.
Carl Carrington
Chief Executive Officer
Mark Dewdney
Chair
Our Blue Endeavour pen after the successful tow to Waihinau
4
New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
Overcoming Challenges and
Strengthening Our Core Business
Part of growing fish in a natural system
is that the environment is dynamic
and can pose challenges for our salmon.
Being prepared for the future is key.
This period marks the third since we
implemented our adapted farming strategy,
focusing on our cooler Tory Channel sites
over the summer. While this period’s strategy
was not as successful as the previous two,
the decisions made three years ago have
helped prevent the issues experienced in
FY22/FY23.
The main fish performance challenge this
period has been the impact of subdued feed
outs due to suppressed appetite over the
summer months, which led to lower-than-
Our commitment to fish
health and performance
remains unwavering.
projected growth. Early runting (when
young salmon fail to adapt to seawater)
is another issue that continues to affect
biological planning as these fish do not
perform when transferred to sea. However,
we have key initiatives in the pipeline to
address these challenges.
Fish Health and Performance
Remains a Core Focus
Our commitment to fish health and
performance remains unwavering. Stability
in fish performance is crucial for reliable
forecasting and delivering consistent results.
We have substantial work in progress, as
shown in the infographic on the next page,
highlighting our key initiatives and future
plans to enhance the resilience of our fish.
5New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Overview
Dedicated in-house veterinarian
We have a dedicated, experienced, in-house
sh veterinarian. Our investment in this
specialist technical expertise is part of our
broader strategy and commitment to address
biological challenges and improve sh health
and welfare across our operations.
Breeding
Smolt (Freshwater)
Salmon (Seawater)
•Breeding for resilience
•Genomics
•Thermotolerance
Current:
Current:
Smolti cation triggers
Recirculating Aquaculture
Systems (RAS)
Live vaccine development
Current:
•Feed — novel summer diet
•Ruakākā sea trials
•Fish and environmental monitoring
•Improved husbandry
Optimal seasonal diets
Therapeutant availability
Centralised feeding
Wellboat transfers and grading
Ongoing husbandry improvements
•Vaccines
•Selection for performance
Ongoing genomics improvements
Pathogen resistance
Evolved trait selection
Focus on Our Fish — Fish Health and Performance Initiatives
6New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
Summer Diet Trials
Our summer diet trial at the Ruakākā sea trial facility
yielded promising results. The new diet, tailored for
King salmon in warmer waters, outperformed our
current commercial diet in key fish performance metrics.
This feed will be implemented across our grow-out
operations this summer.
Thermotolerance
Our work on breeding salmon with higher temperature
tolerance is progressing well. The first fish that have
had thermotolerance included as a trait will go to sea
in 2026. As with all breeding programme traits this is
a long-term investment with small incremental gains.
Therapeutant Availability
NZKS to date has not used antibiotics, however
environmental changes such as evolving pathogens pose
increasing risks to our fish. We are currently preparing for
the possible future use of antibiotics to ensure positive
fish health and welfare outcomes.
This tool would only be used when recommended as
the appropriate treatment by our in-house veterinarian,
under strict oversight and in accordance with
relevant regulations. This preparation is vital for
future-proofing our operations and ensuring fish
health and welfare are prioritised.
Genomics
Genomics is the study and mapping of genomes
(the full set of genetic instructions for an
organism), but does not involve the manipulation
of genes or genomes. This technology improves
our breeding approaches, enabling more accurate
selection of broodfish with desirable traits, such
as growth and survivability. Implemented for the
first time this year, genomics is showing promising
results in broodstock and is crucial for breeding
salmon that can thrive in future environments.
Spotlight on Key Fish Health and
Performance Initiatives
Dr. Zac Waddington is our dedicated, in-house fish
health veterinarian. Dr. Waddington was trained in
Canada and is fully licensed in New Zealand, with an
additional licensed Aquatic Veterinarian designation
granted by the World Aquatic Veterinary Medical
Association. He has over 10 years of experience and is our
Fish Health and Welfare Manager based out of Picton.
Spotlight on
Dr. Zac Waddington
7New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
g. Wellboat
Significant steps made towards
leasing of a Wellboat
c. Pilot Recirculating
Aquaculture Systems (RAS)
Design work underway at Tentburn
This year has been significant for
implementing our strategy and making
wise investments in key projects,
with a focus on timing and sequencing.
a. Stable Core Business
Organisation design
Fish performance improvements
b. Pilot Open Ocean Farm
Two pilot pens in the water
Mooring grid installation underway
d. Future Breeding Programmes
First year of genomics programme complete
e. Supporting Infrastructure
Whekenui Blue Endeavour service vessel
arrived in October
Westshore Warehouse (feed storage in Picton)
underway
f. Factory Capacity Expansion
Commercial site for future factory
purchased in Blenheim
Significant Investments
and Progress on Our
Growth Plan
8New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Overview
a. Stable Core Business
The health of our fish is a core focus of our company
and underpins our success. We continue to invest in fish
health and performance, which supports the underlying
business performance. In addition, we continue to invest in
strengthening our team and organisational capabilities,
to support the delivery of our planned growth.
b. Pilot Open Ocean Farm
The Blue Endeavour pilot is our flagship initiative to establish
the country’s first open ocean salmon farm, located seven
kilometres off Cape Lambert outside the Marlborough Sounds.
We have experienced some significant challenges in the
mooring grid installation which will delay the start date of the
Blue Endeavour farming operations. We expect installation
progress will accelerate as weather conditions improve coming
into summer. Once the mooring grid installation is complete,
the pens will be moved to the Blue Endeavour site, with the
fish to be relocated after that.
c. Pilot Recirculating Aquaculture Systems (RAS)
Work on the pilot RAS at Tentburn hatchery in Canterbury
is progressing. The facility is expected to be operational by
late 2026/early 2027.
d. Future Breeding Programmes
We are transitioning to genomic selection for more
precise and accelerated genetic gains. This approach is
modelled to improve accuracy by over 30%, achieving
12 years of genetic gains in just nine years.
e. Supporting Infrastructure
Investments in supporting infrastructure include the
new Blue Endeavour service vessel, Whekenui, and
entering into a feed storage and delivery contract with
Port Marlborough, which will commence in early 2026.
f. Factory Capacity Expansion
We purchased a commercial property in the Cloudy Bay
Business Park, Blenheim, which settled in October.
This purchase is to support our future volume growth.
g. Wellboat
A wellboat is essential for scaling Blue Endeavour. We
are planning to bring the wellboat timeframe forward
to align with the Blue Endeavour pilot phase rather than
waiting for commercial scale. This will not only enable
us to support the pilot but also unlock new inshore
operational and performance opportunities.
Progress Summary
on Our Growth Plan
Future Farming Update
Three key components of our growth
plan — Blue Endeavour pilot, RAS pilot, and
Future Breeding Strategies — are part of our
‘Future Farming’ project with the New Zealand
Government. We acknowledge the co-funding
of this project by the Ministry for Primary
Industries’ Sustainable Food and Fibre Futures
fund (recently changed to the Primary Sector
Growth Fund). Significant progress has been
made this year, and we are pleased that
our growth plan contributes to the wider King
salmon industry development for NZ Inc.
9New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
During this reporting period, we temporarily reduced
harvest volumes for approximately four months to allow
biomass recovery. With demand outstripping supply,
we had to ration supply among our valued customers.
We appreciate their continued support and loyalty, which
speaks to the robust relationships our sales team has
developed globally.
Having supply constraints during a time of strengthening
demand is challenging. However, we have confidence
global demand will remain strong, with the increase in
volume of King salmon coming out of New Zealand over
the next decade.
Market Development and Strategic Growth
As we gear up for growth, our market development
planning is well underway. We have a strong Sales and
Brands strategy and are confident in maintaining our
market pricing. We understand our customers’ needs and
will continue to invest in supporting our brands to deliver
value to them.
Markets
Our supply will increase significantly
over the coming years — we are focusing
on strengthening, and building resilient
markets, to absorb this incoming supply.
10New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
Strategic Market Development
Our three strategic growth markets are North America,
Australia, and China, supported by a strong domestic position.
Due to lower production volumes, we are focused on our
core markets. North America remains our primary market,
with ongoing investments to maintain the premium brand
position of Ōra King. Blue Endeavour volume growth will allow
expansion into higher-end retail channels.
In China, despite representing 5% of current sales, there is
significant potential to establish Regal as the premier King
salmon offering, and secure premium retail distribution.
Australia experienced solid performance from Ōra King and
Regal, though growth was constrained by supply restrictions.
Australia presents opportunities for expansion in the food
service channel and with retailers seeking a premium
alternative to Atlantic salmon.
In New Zealand, supply constraints this coming year will result
in modest growth as retail partners continue to grow the
salmon category and the foodservice channel recovers.
Outlook
We remain committed to our growth plan and are
confident that well-timed, sequenced investments will
support our stable core business and prepare us for
significant future growth.
Although the mooring grid installation for Blue Endeavour
is behind schedule, as a company we remain confident
it will be complete in early 2026, and we will have our
salmon at this site next year.
While the wait has been long and the work substantial,
we remain pleased with the overall progress made on the
Blue Endeavour pilot. Our eyes remain firmly on the prize
with Blue Endeavour which, when fully scaled, has the
potential to add ~$350 million in annual export revenue to
our operations. Blue Endeavour will drive many significant
decisions and investments, positively impacting the local
region and the nation.
Our balance sheet remains strong, with net cash on hand
at the end of the reporting period of $47m.
We remain committed to our growth
plan and are confident that well-timed,
sequenced investments will support our
stable core business and prepare us for
significant future growth.
11New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
Summary
There are no quick fixes in aquaculture. Everything
takes time to plan, invest, and implement.
This period, we have made significant changes
and investments to secure and strengthen our
future. We are confident these initiatives will be
transformative, mitigate fish health challenges,
and reduce volatility.
The planning and delivery of our growth plan this
period has been significant. We thank our team
and everyone who contributed.
We are a compelling primary sector growth story,
ready to grow.
Carl Carrington
Chief Executive Officer
Mark Dewdney
Chair
Clay Point, Tory Channel/Kura Te Au
12
New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
$7.1
million
Pro-forma EBITDA
2nd
Climate Related
Disclosures
Report published
in May
~110kg
Of waste collected
over 15 beach
clean ups
40+
Community
events and
engagements
3,315 G&G MT
Harvested
66%
Export sales
34%
Domestic sales
One
New service vessel
for Blue Endeavour
Salmon Bites
4 Star BAP certified
$6.3
million
Net Loss
After Tax
~1,400
Native trees planted
as part of NZKS
funded environmental
initiative
Two
Blue Endeavour
pilot pens
in the water
One
Commercial site
for future factory
purchased in Blenheim
Two
Nelson Marlborough
Institute of Technology
(NMIT) scholarship
recipients
13New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Overview
Our Global Sales
Footprint
Sales by Market
For the period ended
30 Sept 2025
Europe
Asia
China
Japan
New Zealand
(excl. China /
Japan)
North
America
41
%
3
%
4
%
5
%
3
%
Australia
10
%
34
%
14New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
Performance Highlights
GAAPPro-Forma
1
NZ$000sFY25 (Sept)FY25 (Jan)
% chg.
FY25 (Sept)FY25 (Jan)
% chg.
8 months12 months8 months12 months
Volume Sold (t)3,2606,582 (50%)3,260 6,582 (50%)
Revenue117,719 210,993 (44%)117,719 210,993 (44%)
Gross Profit10,237 45,365 (77%)26,05359,874 (56%)
Gross Profit %9%22%22%28%
EBITDA(3,709)26,384 -7,084 29,729 -
EBITDA %(3%)13%6%14%
EBIT(9,599)18,247 -1,19421,592 -
NPAT(6,327)13,359 -1,444 15,767 -
1
Refer to Glossary for the NZKS definition of Pro-Forma Operating EBITDA.
Group Financial Performance
Biological Performance and Supply
Chain Impacts
The result for this reporting period was impacted by
a period of challenging biological performance, which
affected this period’s harvest volumes and the biomass
at sea. This was mainly driven by subdued feed outs
due to suppressed appetite over the summer months,
resulting in smaller than originally forecast fish.
In order to meet weekly harvest biomass targets, we
had to harvest more fish than originally planned. This
reduced the time available for fish to grow, further
compounding the issue. As a result, smaller fish were
harvested, creating both efficiency and yield challenges for
the processing team due to the manual labour demands of
our current infrastructure. On the sales side, the move to
smaller fish also created difficulties with key customers and
markets whose preference is for larger fish.
The change in balance date to 30 September has reduced
the current reporting period to 8 months. The prior period
reflects a 12 month period to 31 January 2025. Accordingly,
the amounts presented in the table below may not be
directly comparable.
15New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
Harvest Strategy and Financial Implications
In response, the Board elected to reduce harvest levels
temporarily to allow biomass recovery. This decision led to
a decrease in salmon available for sale, reducing revenue
and profitability. This again highlights the company’s high
operational leverage, with significant fixed and semi-
variable costs.
Recovery Actions and Outlook
Feed outs have now returned to planned levels, and
biomass is being rebuilt across our seafarms. A new
summer diet, successfully trialled at the Ruakākā facility,
will be implemented this coming summer. The trial showed
improved fish performance outcomes compared to the
current commercial diet, providing optimism for stronger
biological performance into FY26.
Balance Sheet and Growth Investments
Despite the temporary decline in profitability, the company
maintains a strong balance sheet with net cash of $47m at
30 September 2025. This enables continued investment in
risk mitigation initiatives and future growth opportunities,
including the Blue Endeavour pilot.
The company continues to look for opportunities to reduce
risk across the existing supply chain, noting these learnings
can be leveraged across growth initiatives.
-75
-50
-25
0
25
NZ$m
FY22FY23FY25
JAN
FY24FY25
SEPT
73.2
1.928.513.4
6.3
8 MONTHS12 MONTHS
FY25 (Sept) GAAP NPAT
NZ$m
-10
0
10
20
30
FY22FY23FY25
JAN
FY24FY25
SEPT
8.7
2.7
24.529.77.1
8 MONTHS12 MONTHS
FY25 (Sept) Pro-Forma Operating EBITDA
Biological Performance
FY25(Sept)FY25(Jan)
% chg.
8 months12 months
Harvest Volume (MT)3,315 6,778 (51%)
Average Harvest Weight (Kg) 3.27 3.89 (16%)
Feed Conversion Ratio (FCR) 1.99 1.73 15%
Closing Livestock Biomass4,243 4,879 (13%)
Feed Cost ($ / Kg of feed) 3.16 3.41 (7%)
16
New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
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Towards
a Healthier
Tomorrow
Towards a Healthier
Tomorrow
In our FY25 Annual Report (for the year ended 31 January
2025), we presented our new purpose statement — Towards
a Healthier Tomorrow.
Our efforts focus on five key dimensions: healthy
economies, healthy environments, healthy relationships,
healthy communities, and healthy kai.
This reporting period, we have again structured this Annual
Report around these five dimensions, to show how we are
turning our strategy into action, and to track our progress
meaningfully against our own goals.
Health is at the core of our company —
driving everything we do, from the health
of our fish and teams to our customers,
communities, and environment.
17New Zealand King SalmonAnnual Report FY25 (Sept) — OverviewContents
Healthy
Economies
We are proud to be a significant
contributor to both regional and
national economies, with future plans
that will further grow this impact.
18New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Healthy Economies
Key milestones:
Blue Endeavour Volume Increases
The pilot aims to produce up to ~500MT
per year, with full commercial development
planned after the second harvest in the second
half of FY27, increasing to up to ~10,000MT
(in addition to our current volumes).
We have experienced some significant challenges in the
mooring grid installation, which will delay the start date
of the Blue Endeavour farming operations. Despite this,
we have achieved important progress in our pilot
pen build-out and supporting enabling infrastructure
(see the ‘key milestones chart’ below).
As at 30 Sept 2025
The Blue Endeavour (BE) pilot is our flagship initiative to
establish the country’s first open ocean salmon farm,
located seven kilometres off Cape Lambert outside the
Marlborough Sounds. It represents a decade of planning,
consultation, and regulatory approvals.
Ordering and construction of key infrastructure (pens, moorings, vessel)
2024202520262027
Baseline monitoring
First ‘BE fish’ growing at Tentburn hatchery
Installation of mooring
grid at BE site
Second ‘BE fish’ growing at Tentburn hatchery
Second pilot fish to nursery
and grown out
Second pilot fish relocated
to BE and grown out
Second pilot
harvest
A Pilot Approach to Open Ocean Farming
First pilot
harvest
First pilot fish relocated
to BE and grown out
First pilot fish growing at inshore site
19New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy EconomiesContents
Commercial Site Purchase — Cloudy Bay
We have purchased a commercial site at Cloudy Bay
Business Park in Blenheim for future factory capacity needs.
Blue Endeavour Pens at Waihinau
Two pens are holding our first Blue Endeavour pilot fish
at our inshore nursery site at Waihinau.
Blue Endeavour Pen Tow
Two pens were towed successfully to Waihinau
(Pelorus Sound) in late April.
Progress Image Gallery
The following progress image gallery shows the
key achievements across this reporting period.
Blue Endeavour Pens Assembled
Two pens were constructed at Port Marlborough and
launched in April.
Mooring Grid Installation
A 44 anchor mooring grid is being installed at the
Blue Endeavour site (starting in September).
Blue Endeavour Service Vessel
Built in Vietnam, Whekenui arrived in Nelson mid-October,
and will service the farm and carry feed for Blue Endeavour.
Blue Endeavour Baseline Monitoring
The baseline monitoring period is now complete (including
biogenic habitats, quality, marine life, and cultural mauri
monitoring assessments).
Feed Storage Warehouse
We have entered into a lease agreement with Port
Marlborough. Construction has begun on a purpose-
built 3,200sqm quayside warehouse on the Westshore
area of the port.
20New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Healthy Economies
We require a wellboat in order to farm Blue Endeavour
on a commercial scale. We are currently investigating
the lease of a wellboat and seeking regulatory
approvals earlier than originally planned, as this will
unlock operational and productivity opportunities at
our inshore farms.
Wellboat — Enhancing
Our Capabilities
Introducing a wellboat into our operations
will enhance our farming capabilities.
Wellboats
A wellboat is a specialised vessel designed
to transport live fish in a highly controlled
environment, typically in large, well-like tanks.
Wellboats are commonly used internationally
in the finfish aquaculture industry. Introducing
a wellboat into our farming operations would
be the first time a wellboat would be used in
New Zealand, and it is a critical piece of
infrastructure required to develop scale and
increase productivity for NZKS.
Increasing productivity — a wellboat
enhances farming efficiency at inshore farms
by unlocking unutilised feed discharge and
streamlining the farming model.
Reducing risk — a wellboat allows proactive
risk management by enabling fish relocation
to optimise the utilisation of our inshore farms,
avoiding potential temperature challenges.
It will also remove manual towing risks and
allows for standardised counting and grading
of stock during the grow out cycle.
Spotlight on Healthy Economies
21New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy EconomiesContents
Features and Benefits
of a Wellboat
Fish Counting and
Grading System
Benefits:
• Improved fish health monitoring
• Fish quality optimisation and
increased productivity (e.g.
removal of failed smolt)
• Increasing the accuracy of
biomass tracking and improved
forecasting
• Ability to have multiple grades
if required
A Well with Movable
Bulkhead for Transporting
Fish and Unloading
Benefits:
• Improved reliability of farming
model by relocating fish around
farm footprint to avoid summer
challenges and enable fallowing
of farm sites
• Better utilisation of available
feed discharge
• Removes the need for manual
pen tows
• Move to a mostly single-year
class model
Water Quality Management
System
Benefits:
• CO2 strippers, circulation and
oxygen addition improve water
quality for fish welfare
Oxygen and Ozone
Production Systems
Benefits:
• Water quality and disinfectant
• Biosecurity improvements
22New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy EconomiesContents
Advantages of the Site
• Close to farms and fish
• Less road transport improves sustainability
outcomes
• Access to SH1
• Brownfields = lower building costs and shorter
development timeline
Our newly purchased commercial site, Cloudy Bay Business Park in Blenheim
On 9 September 2025 we announced the purchase of a
commercial site at the Cloudy Bay Business Park in Blenheim.
Our current factory in Nelson has limited capacity to handle
our future processing needs, anticipating volume growth
from the Blue Endeavour project. After considering various
sites over several years, the Cloudy Bay site was deemed the
most viable to achieve our growth potential.
Although the site’s use is at least three years away, we
plan to develop it into our future primary salmon processing
facility, while continuing some operations in Nelson.
This marks an important milestone and investment in our
future growth.
Preparing for Growth in
Our Processing Capacity
In line with our investment strategy, we will take a staged
and cautious approach as we work our way through several
‘decision gates’.
Each gate will be an opportunity to assess the stability of
our current volumes, and the progress of our Blue Endeavour
pilot farm, before moving to the next decision gate. We will
work methodically through the necessary design work and
determination of total investment required.
Next Steps
23New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy EconomiesContents
Ngāmahau, Tory Channel/Kura Te Au
Healthy
Environments
We depend on a healthy environment
for our fish to thrive. Minimising our
environmental footprint and working with
the natural world is core to our business.
24New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Healthy Environments
NZKS has recently entered into a feed storage
and delivery contract with Port Marlborough,
which will see a 3,200sqm purpose-built
warehouse constructed to store our salmon
feed at the port, closer to where it is needed
at our Marlborough seafarms.
The ‘Westshore Warehouse’ project will
support the future resilience of our operations
in Marlborough, by streamlining feed storage
logistics, and importantly — minimising our
environmental footprint.
It is estimated the new warehouse will reduce
road transport associated with the movement
of salmon feed between Nelson and Picton,
by over 90%.
The warehouse project will also allow our
current primary feed supplier, BioMar Australia
(BioMar), to commence delivery of our
salmon feed direct to Port Marlborough once
their new feed delivery vessel is commissioned
in 2026.
With a 3,000-tonne capacity, BioMar’s new
dedicated feed vessel — ECOline — will not only
help deliver environmental and operational
The new BioMar ECOline vessel
Building underway for the new feed warehouse
gains for NZKS and strengthen industry
collaboration, the move presents an
opportunity for the wider aquaculture
sector and the Marlborough region,
through the establishment of a more
direct shipping link between Marlborough
and Australia.
NZKS’ collaboration with Port Marlborough
and BioMar comes at a time when our
company is preparing for significant
future growth at Blue Endeavour. Local
industry collaboration, and refined supply
chain logistics will be key to managing
sustainable growth, and it is important
environmental stewardship remains in
focus as we navigate our growth trajectory.
This project helps
streamline our feed storage
logistics and minimise our
environmental footprint.
Westshore
Warehouse Project
25New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Healthy Environments
understanding of our carbon impact and allows us to have
a solid baseline to work from.
In October 2025, it was announced that as part of the
Financial Markets Conduct Amendment Bill the climate
reporting threshold for listed issuers was proposed to lift
from the current market capitalisation threshold of $60
million to $1 billion. This is expected to be in effect in 2026.
In response to this announcement the Financial Markets
Authority (FMA) has decided to provide interim relief in the
form of taking a ‘no action’ approach to the 2025/2026
reporting period for affected entities who are expecting
their climate reporting obligations to cease once legislation
is passed.
Based on our current market capitalisation being ~$110
million, NZKS will no longer be a Climate Reporting Entity
(CRE) and as such the Board have determined that we
will no longer prepare CRD’s with effect from the current
reporting period. Despite not releasing a separate CRD
report for the current period, we acknowledge that as a
primary sector organisation, we are reliant on the natural
environment, and climate change can significantly
influence NZKS’ trajectory.
In acknowledging our ongoing commitment to
sustainability, NZKS intend to:
• Continue to capture our Scope 1, 2 and 3 carbon emissions
and voluntarily report them in a GHG Statement
Bioresource Processing Alliance (BPA) Support
Helps Drive Innovation and Opportunity
With the support of ~$50k in grant funding from the BPA,
NZKS has been working alongside Callaghan Innovation
to research and trial the process and product development
of high-grade salmon oil and salmon protein products.
At the Food Innovation Network’s FoodBowl in Auckland,
Julien Stevens (NZKS Research & Development Manager),
has worked with Callaghan Innovation to test the equipment
necessary for possible in-house production of salmon oil,
as well as the production of commercial samples to share
with our customers.
Climate Reporting
We completed our second Climate-Related Disclosures
(CRDs) for the year ended 31 January 2025. This was a
Greenhouse Gas (GHG) emission reporting milestone for
NZKS as we obtained limited assurance over our Scope
1, 2 and 3 carbon emissions. This supports our continuing
We have an ongoing focus on optimising our
remaining raw materials to maximise value,
respect our valuable natural resources, and
minimise our environmental footprint.
Further Initiatives
26New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy EnvironmentsContents
Read our GHG Statement
• Voluntarily obtain a level of assurance over Scope 1 and 2
emissions reported in a GHG Statement. (Noting in the
current period, limited assurance was obtained for Scope
1, 2 and 3. Going forward, from the next reporting period,
a level of assurance will be obtained for Scope 1 and 2 only)
• Maintain a proactive approach to identifying and
addressing climate-related risks via our enterprise level risk
register
• Continue to have a sustainability lens across large projects,
to ensure we are understanding our footprint but also
areas where we can reduce our impact
Due to no longer releasing separate CRDs, we have included
the current periods absolute GHG emissions by scope as well
as our GHG emissions intensities into our annual report.
The emissions data has been prepared in accordance with
the recognition and measurement criteria as described
in the basis of preparation of our GHG Statement which
are based on the ‘Greenhouse Gas Protocol — A Corporate
Accounting and Reporting Standard’ and ‘Corporate Value
Chain (Scope 3) Accounting and Reporting Standard’. NZKS
has engaged PricewaterhouseCoopers (PwC) to perform
a limited assurance engagement over the Scope 1, 2 and 3
GHG emissions. The assurance report can be found in our
GHG Statement on our website linked below.
ScopeFY25 (Sept)
8 months
% of total emissions
FY25 (Sept)
FY25 (Jan)
12 months
% of total emissions
FY25 (Jan)
tCO2e tCO2e
Scope 1 1,618 3.5%2,4082.84%
Scope 2 484 1.0%5280.62%
Total Scope 1 and 2 2,102 4.5% 2,936 3.46%
Scope 344,31295.5%81,99996.54%
Total Scope 1, 2 and 346,414100%84,935100%
Absolute GHG emissions by Scope
Intensity indicatorsFY25 (Sept)
— Liveweight
(tCO2e/t)
FY25 (Jan)
— Liveweight
(tCO2e/t)
YoY %
(decrease)/
increase
FY25 (Sept)
— G&G (tCO2e/t)
FY25 (Jan)
— G&G (tCO2e/t)
YoY %
(decrease)/
increase
Scope 1, 2 & 3 emissions per tonne
(tCO2e/tonne)
12.32 11.0312%14.00 12.53 12%
Scope 1 & 2 emissions per tonne
(tCO2e/tonne)
0.56 0.3846% 0.63 0.43 46%
GHG emissions intensity
The current period absolute emissions have been impacted
by the change in balance date, resulting in 8-months of
GHG emissions, compared to 12 months in the previous
reporting period, FY25 (Jan). The reduced harvest volumes
driven by the decision to slow harvest to allow for biomass
rebuild, after a period of slower growth, has subsequently
impacted the greenhouse gas intensity metrics for the
period. The fixed level of emissions related to business-
as-usual activities, including the rebuilding of biomass
has still been incurred but is now spread over a smaller
harvest volume. The reduced harvest has also impacted
the scope allocation across total emissions. The reduction
in Scope 3 (primarily airfreight and fish feed emissions) as
a percentage of overall emissions, aligns with the reduced
sales and livestock harvested over the period.
27New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy EnvironmentsContents
Healthy
Relationships
We have an ecosystem of important
relationships which we are dependent
upon for success. We will continue to
strengthen and invest in our relationships
to achieve a healthy future.
28New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Healthy Relationships
Whekenui arrived via a lift ship from Vietnam, where
it was built by Southern Ocean Solutions Pty Ltd
Ka hoa rā e Tangaroa
United by Tangaroa
Punga pakohe anchor
onboard Whekenui
Te Rūnanga o Ngāti Kuia tohunga Huataki
Whareaitu and NZKS’s Chantelle Te Haara
Fostering connections, meaningful engagements, and
enduring partnerships with tangata whenua are core values
for our company.
We were honoured to be gifted a name ‘Whekenui’ by
Te Rūnanga o Ngāti Kuia, for our specialised Blue Endeavour
service vessel.
The name ‘Whekenui’ honours the pūrākau of Te Wheke
o Muturangi, and the waters where Whekenui will be
operating.
Whekenui arrived in October, and a special ceremony,
‘Te Whakamānutanga o te waka’, was led by Ngāti Kuia.
The ceremony included the placing of a symbolic punga
pakohe (an anchor made of argillite), crafted by Ruihana
Smith (see image).
Punga are large stones used as anchors for waka in
traditional seafaring. Punga stones are significant cultural
artefacts and pakohe is a taonga synonymous with
Ngāti Kuia.
We are proud that our service vessel — an essential piece of
infrastructure for our Blue Endeavour pilot — carries a name
with such mana and significance to Ngāti Kuia, and to a
region we are proud to be a part of.
29New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy RelationshipsContents
We are committed to strengthening relationships in
communities across our geographic footprint. We have
been farming for over 30 years in Marlborough, with deep
connections to the community and industry in the region.
Our commitment to Marlborough was strengthened by the
recent announcement of NZKS’ purchase of a commercial
site within the Cloudy Bay Business Park in Blenheim.
Two examples of our current partnerships in the Marlborough
region including the Queen Charlotte College wet lab and
Waikawa Boating Club.
Queen Charlotte College Wet Lab
The aquaculture wet lab at Queen Charlotte College is an
innovative, fit-for-purpose facility, providing students from
NCEA Levels 1-3 with hands-on learning opportunities and
access to industry expertise.
NZKS has supported Queen Charlotte College since the early
days of the school’s Aquaculture Academy. To support recent
upgrades we donated equipment, including recycled tanks
from our Tākaka hatchery and repurposed feeders — as well
as providing eggs and smolt to support students’ learning,
in addition to a recent cash injection of $10,000.
Waikawa Boating Club
We are a proud naming rights sponsor of the Waikawa
Boating Club’s New Zealand King Salmon Winter Series.
The NZKS Winter Series is a sailing event for participants
of all ages, to enjoy time in the Queen Charlotte Sound
as part of a yacht crew. It is raced over 10 weekends,
culminating in a final race day. As well as providing
funding support for the Series, NZKS donates salmon
prizes for participants after each race.
We have been farming for over 30
years in Marlborough, with deep
connections to the community and
industry in the region.
Strengthening
Our Commitment
to Marlborough
Stuart Barnes, NZKS, demonstrating the newly
refurbished Queen Charlotte College wet lab
30
New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy RelationshipsContents
Healthy
Communities
We have been part of the fabric of
Te Tauihu for over 35 years. We value our
team members and communities (in the
region and beyond), who are woven into
our company.
31New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Healthy Communities
The health and safety of our people
remains a priority focus.
Lost Time Injury Frequency Rate (LTIFR)
Our Lost Time Injury Frequency Rate (LTIFR) declined
for the reporting period, compared to the same period
last year. During this period, the LTIFR reduced by
22.89%, reflecting our ongoing efforts to strengthen
safety culture and improve risk management practices.
In addition to the reduction in overall incidents, the
average time lost per Lost Time Injury (LTI) also
decreased significantly — from 19.1 days to 10.12 days
per month, representing a further 46.91% reduction.
This demonstrates progress in both the prevention of
workplace injuries and the management of return-
to-work programmes.
Safety Reporting Culture
There are positive trends in our health and safety
reporting culture. For the reporting period, over 750
H&S events were recorded on our safety management
system. These comprised of incidents, injuries, near
misses and soreness reports. We are dedicated to
growing employee engagement and confidence in our
reporting systems and response processes. These are
vital components of a high-performing safety culture.
Critical Risk Management
New processes have been introduced to support the
management of critical risks across the business.
These processes have been implemented to enhance
both critical risk reviews and critical risk audits.
The developments align with our strategic shift towards
understanding the gap between “Work as Imagined”
(WAI) and “Work as Done” (WAD). By bridging this gap,
we aim to ensure that safety procedures are not only
well-designed but are also practical, understood, and
consistently followed in the workplace.
Additionally, we have expanded our use of technology-
based solutions to manage vehicle-related risks,
supporting real-time data collection, proactive risk
identification, and driver behaviour monitoring.
Health, Safety
and Wellness
In addition to the reduction in overall
incidents, the average time lost per
Lost Time Injury (LTI) also decreased
significantly.
32New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy CommunitiesContents
Employee Engagement and Wellbeing
Our 2025 Annual Employee Engagement Survey recorded
an engagement rate of 81%, with a response rate of
86%. While this engagement rate is slightly down from
the previous year, it is our second-highest result since the
survey’s inception in 2010.
Benchmark comparisons continue to affirm our strong
performance:
• Exceeding the New Zealand Average Benchmark
• Surpassing the Global Food Products Benchmark
• Outperforming the NZ Manufacturing Average
Benchmark
• On par with the New Zealand Top 25th Percentile
Benchmark
Health and Safety, along with Food Safety, were the two
categories that reported our highest engagement, each
achieving levels of agreement exceeding 85%.
Notably, 2025 marked the first year that we included
questions on psychological safety, which yielded a high
level of agreement score of 84%. These results suggest our
people feel safe to speak up, take interpersonal risks, and
contribute openly to discussions — an essential element of
both safety and innovation.
33New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy CommunitiesContents
Learning and Leadership Development
The NZKS Open Learning Portal ‘Go One’ reported 147
course completions from 552 enrolments this reporting
period, reflecting our commitment to ongoing team
member development and knowledge-sharing.
In April 2025, we launched our Emerging Leaders
Programme, identifying 10 high-performing individuals
to participate in this immersive, application-based
initiative. The programme is designed to build the
leadership capabilities needed to navigate the evolving
world of work, equipping our future leaders with the
skills and mindset necessary for continued success.
NZKS team members involved in the recent leadership
development programme in Picton
Uplifting Communities
As a proud Te Tauihu-based company, we support a
range of initiatives that align with our values, and aim
to uplift local communities.
NZKS has supported Special Olympics Nelson
Basketball for close to six years, providing funding to
support athlete participation through uniforms and
equipment, as well as opportunities to compete in
tournaments around New Zealand. We’ve also spent
time on the court ourselves in the annual ‘team versus
sponsors’ half time match during NBS Nelson Giants’
games. Nelson athletes currently train and play year-
round, to maximise opportunities to connect as part
of a team, stay fit and represent the region on the
national stage.
This year, we are proud to extend our partnership
with Marlborough Chamber of Commerce to
include sponsorship of a new award category at the
Marlborough Business Excellence Awards 2025.
The ‘New Zealand King Salmon Culture and Belonging
Award’ recognises a business that demonstrates
exceptional leadership in creating an inclusive,
respectful, and equitable environment for all, actively
Special Olympics Nelson basketball team on the court
working to break down barriers and ensure that people
from diverse backgrounds feel welcomed, supported,
and represented.
Celebrating organisations in the region that
champion meaningful engagement and inclusive work
environments aligns with our ongoing commitment to
fostering healthy, thriving communities.
Spotlight on
Healthy Communities
34New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy CommunitiesContents
Healthy Kai
We are proud to grow a product that
is recognised as a healthy, nutritious
form of protein
1
. King salmon is a
good source of omega-3
2
and is
packed full of nutrients essential
for overall health and wellbeing.
1
LCA of NZ farmed King Salmon.
2
Schedule 4 FSANZ — Food Standards Code.
35New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Healthy Kai
Our brands remain central to creating long-
term value, deepening consumer trust,
and enhancing the global reputation of
New Zealand King Salmon. Over the past
year, Ōra King, Regal, and Omega Plus
each delivered strong achievements — from
strengthening our influence in global fine
dining, to growing everyday premium
presence in retail, and expanding our
footprint in pet nutrition.
Our Brands
North America’s 50 Best Restaurant Awards Activation by Ōra King,
featuring Chef Gilberto Cetina from Holbox, #42 on the 50 Best list
36
New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy KaiContents
Connecting with Pet Owners
Omega Plus is building strong connections with pet
owners through memorable events and strategic
retail partnerships. By driving visibility, engagement,
and trust, the brand is growing a loyal community
and establishing itself as a leading choice in premium
pet nutrition.
• Petstock and Omega Plus ran an awareness
campaign delivering a reach of more than 840,000
pet owners. This resulted in an increase of 17% in
sales (when compared to the prior comparable
period). A standout achievement was the 44%
increase in first-time Omega Plus shoppers over this
period, meaning more of New Zealand’s pets are
experiencing our pawsome products.
Shaping Global Culinary Influence
Ōra King continues to be influential in the world of fine
dining. This year, we expanded our ambassador network,
celebrated Michelin-starred achievements, and delivered
standout culinary experiences that reinforced the brand’s
reputation as the first choice for chefs and discerning
consumers worldwide.
• We welcomed two high-profile Australian chefs into the
2025 Ōra King Ambassador programme, strengthening
our global culinary network.
• Global media coverage for Ōra King remained strong
across online media outlets.
• In September, we attended North America’s 50 Best
Restaurant Awards in Las Vegas. As the first NZ sponsor,
we promoted our Ōra King brand and the wider NZ story
to North America’s best chefs.
Omega Plus is building strong
connections with pet owners through
memorable events and strategic
retail partnerships.
37New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy KaiContents
Marlborough King Salmon, and sharing our unique
New Zealand story with discerning Chinese consumers.
Our strategic partnership with China Resources Food
Supply Chain Co. Ltd (CRNFSC) has been instrumental in
opening doors to premium retail and foodservice channels,
establishing Regal as a trusted premium King salmon
offering. We recently held a launch event in Shanghai with
premium retailer Olé, where we celebrated our partnership
with media, VIP customers and influential businesses.
As salmon consumption in China accelerates, we are
investing to ensure Regal captures this demand, builds
brand awareness, and secures its place as the premium
option for high-value Chinese consumers — driving
sustainable growth and long-term brand equity.
China isn’t just a growth market — it’s a brand-defining
frontier for Regal.
Everyday Premium, Everywhere
Regal is bringing premium quality to everyday moments
and connecting with consumers across New Zealand,
Australia, and China. Through targeted campaigns,
influencer collaborations, and retail growth, the brand
continues to strengthen loyalty while attracting new
and younger audiences in authentic, engaging ways.
• Maintains #1 consideration, and preference in NZ,
with 77% of aware consumers considering Regal.
• Expanding in China retail and foodservice, supported by
first NZKS China-based ambassador, chef Caleb Zyon.
Growing the Regal brand in China
China is one of the most exciting growth opportunities
for NZKS — and Regal is at the heart of our strategy.
We are focused on building influential retail and foodservice
partnerships, growing brand recognition for Regal
Regal is bringing premium quality to
everyday moments and connecting
with consumers across New Zealand,
Australia, and China.
Yawei Zhang China Resource Food Supply Chain Co., Ltd Sales
Director; Graeme Tregidga CCO NZKS; Jiasha Tang Olé, East
area GM; Xuefeng Li Olé East area purchasing Director at a
Regal brand launch and event at Olé store inside an exclusive
shopping mall in Shanghai.
38
New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy KaiContents
Global Reach and Key
Strategic Market Focus
Lower production volumes during this
reporting period required a strategic focus
into our core markets. We remain dedicated
to ensuring our salmon is available in the
local New Zealand market, while maintaining
supply to our key export markets.
New Zealand: Due to this constrained supply period, fresh
chilled (wholefish and fillet) volumes across the market
declined. Retail has also felt the impact of reduced supply,
although our branded atlantic product continued to grow
year over year. Demand throughout this period remained
very firm for high quality, premium protein.
North America: Strong demand remained in the
foodservice sector despite tariff introductions. Supply
constraints meant more of a focus towards foodservice.
Australia: Ōra King continues to perform strongly. Our
expansion of Regal through retail is also performing well.
However, supply restrictions constrained in-market activity
and growth.
Other: Retraction in volumes sold in this period was driven
by price increases and reduced production volumes.
China: Our in-market efforts in China have shown
promising results, with significant volume growth.
We continue to expand our activity into the retail sector.
18% Domestic
Retail
66%
International
Foodservice / Retail
16%
Domestic
Foodservice
Sales by
Channel
47% Whole Salmon
3% Other
15% Cold smoked
1% Pet food
26% Fillets and Portions
8% Hot Smoked
10% Australia
41% North America
34% New Zealand
4% Other
5% China
3% Europe
3% Japan
Sales by
Product
Sales by
Country
($ FY25 (Sept))($ FY25 (Sept))
39New Zealand King SalmonAnnual Report FY25 (Sept) — Healthy KaiContents
Leadership & Corporate
Governance
40New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Leadership &
Corporate Governance
Board of Directors
With overall responsibility for setting the Company’s
strategic direction and enhancing shareholder value, our
Board is committed to ensuring the Company meets best
practice governance principles and maintains the highest
ethical standards.
Mark Dewdney, Chiong Yong Tiong, Victoria Taylor, Jack Porus and Paul Munro
have all been identified as ordinarily resident in New Zealand.
Chiong Yong Tiong
Non-Executive Director
MCom, BCom
Victoria Taylor
Independent Non-Executive Director
BCom
Mark Dewdney
Independent Non-Executive Chair
BMS
Carol Chen
Non-Executive Director
BBA
Jack Porus
Non-Executive Director
BCom, LLB
Catriona Macleod
Independent Non-Executive Director
BSc, GIBio, MSc, PhD, GAICD
Paul Munro
Independent Non-Executive Director
BCom, FCA, CFInstD
41
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Executive
The Executive is focused on ensuring the Company is
managed at the highest strategic level and they work
to realise the Company’s long-term corporate objectives.
The Executive are considered ‘senior managers’ as defined
by the Financial Markets Conduct Act 2013.
In addition to the Executive, the Senior Leadership team
(SLT) includes: Nikki Rackley (General Manager, People
& Culture), Monique Hatfull (Head of Relationships &
Communication), and General Manager, Operations and
Supply Chain (vacant as at 30 September 2025).
Following an organisational design review in February 2025,
there were changes to the Executive and Senior Leadership
team announced on 5 March 2025. In the Executive, the
General Manager, Processing role was disestablished
effective 7 April 2025. This role was replaced with the SLT
role of General Manager, Operations and Supply Chain.
As at 17 November 2025 this role was filled by Neil Roper.
Carl Carrington
Chief Executive Officer
Graeme Tregidga
Chief Commercial Officer
Ben Rodgers
Chief Financial Officer
Grant Lovell
General Manager, Aquaculture
Read our Board and
Executive Team Biographies
Te Pangu, Tory Channel/Kura Te Au
42
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Corporate Governance
Corporate Governance Statement
The Board of New Zealand King Salmon Investments Limited (the Company) together
with its subsidiaries (the Group) is committed to ensuring that the Company meets
best practice governance principles and maintains the highest ethical standards. This
Corporate Governance Statement provides an overview of the Company’s governance
framework that applied during the reporting period. It is structured to follow the revised
NZX Corporate Governance Code (NZX Code) effective 31 January 2025 and disclose
practices relating to the NZX Code’s recommendations.
The Board’s view is that during the reporting period, the Group has complied with the
corporate governance principles and recommendations set out in the revised NZX
Code. The Board believes our governance structures and in particular, our remuneration
approach meets the Company’s strategic objectives.
The Company’s key corporate governance documents referred to in this statement,
including charters and policies, can be found on the Company’s website:
www.kingsalmon.co.nz/governance
The Company’s Corporate Governance Code was reviewed, updated and approved by
the Board in February 2025, and the next review is scheduled for December 2025. The
extent to which the Company has followed the recommendations in the NZX Code for
the financial period ending 30 September 2025 is detailed in this Corporate Governance
Statement, which is dated and was approved by the Board, on 27 November 2025.
1. Principle 1 — Ethical Standards
Directors should set high standards of ethical behaviour, model this behaviour and
hold Management accountable for these standards being followed throughout
the organisation.
Recommendation 1.1
The Board should document minimum standards of ethical behaviour to which the
issuer’s Directors and employees are expected to adhere (a Code of Ethics).
The Code of Ethics and where to find it should be communicated to the issuer’s
employees. Training should be provided regularly. The standards may be contained in
a single policy document or more than one policy.
The Code of Ethics should outline internal reporting procedures for any breach of
ethics, and describe the issuer’s expectations about behaviour, namely that every
Director and employee:
a. Acts honestly and with personal integrity in all actions;
b. Declares conflicts of interest and proactively advises of any potential conflicts;
c. Undertakes proper receipt and use of corporate information, assets and property;
d. In the case of Directors, gives proper attention to the matters before them;
e. Acts honestly and in the best interests of the issuer, as required by law, and takes
account of interests of shareholders and other stakeholders;
43New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
f. Adheres to any procedures around giving and receiving gifts (for example, where
gifts are given that are of value in order to influence employees and Directors, such
gifts should not be accepted);
g. Adheres to any procedures about whistle-blowing (for example, where actions of a
whistle-blower have complied with the issuer’s procedures, an issuer should protect
and support them, whether or not action is taken); and
h. Manages breaches of the code.
Code of Ethics
The Board sets a framework of ethical standards for the Group via its Code of Ethics,
which is contained in the Company’s Corporate Governance Code. These standards are
expected of all Directors and employees of the Group.
Every new Director, employee and contractor is provided with a copy of the Code of
Ethics and must confirm that they have read and understand the Code of Ethics. The
Code of Ethics is available on the Company’s website.
Training on the Code of Ethics to existing employees is required at least once every
three years or in the year after the Code of Ethics is materially amended. During the
period ending 30 September 2025, there were no material amendments to the Code of
Ethics. The Company completed training on the Code of Ethics in the previous reporting
period for all existing employees. In the period ending 30 September 2025, there were
no reported breaches of the Code of Ethics. Any alleged breach of the Code of Ethics
would be investigated by the People & Culture team, with any substantiated claims
reported to the Board.
The Code of Ethics is subject to regular review by the Board and was last reviewed in
February 2025. The next review is scheduled for December 2025.
The Company maintains an interests register, on which Directors and executives
disclose any interests such as other Directorships, shareholdings, or ownership, which
may potentially lead to conflicts or perceived conflicts of interest.
The Company has a formal whistle-blowing policy that is reviewed and circulated to all
employees every two years. The policy was reviewed and circulated in December 2024.
The next review is scheduled for 2026.
Recommendation 1.2
An issuer should have a financial product dealing policy which applies to employees
and Directors.
Share Trading by Company Directors and Employees
The Board of the Company has implemented a formal procedure to handle trading
in the Company’s quoted financial products. All Directors, officers, employees,
contractors and advisers of the Group must comply with the procedures set out in
the Financial Products Trading Policy and Guidelines as detailed in the Company’s
Corporate Governance Code, available on the Company’s website.
All trading by Directors and senior managers (as defined by the Financial Markets
Conduct Act 2013) is required to be reported to NZX and recorded in the Company’s
securities trading register. A blackout period is imposed for all Directors and employees
between the end of the relevant half or full year, until the end of the trading day on
which the results are released to NZX for that period. The policy provides that shares
may not be traded at any time by any individual holding material information.
The full procedures are outlined in the Financial Products Trading Policy and Guidelines,
which is contained in the Company’s Corporate Governance Code, available on the
Company’s website.
44New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
2. Principle 2 — Board Composition and Performance
To ensure an effective Board, there should be a balance of independence, skills,
knowledge, experience and perspectives.
Recommendation 2.1
The Board of an issuer should operate under a written charter which sets out the roles
and responsibilities of the Board. The Board charter should clearly distinguish and
disclose the respective roles and responsibilities of the Board and Management.
Responsibilities of the Board
The Board is the ultimate decision-making body of the Company and appoints the
Chief Executive Officer (CEO) to whom it delegates the responsibility of managing
day-to-day operations.
The Board is responsible for setting the strategic direction of the Company, directing
the Company and enhancing shareholder value in accordance with good corporate
governance principles.
In addition to the duties and obligations of the Board under the Companies Act 1993
(the Act) and the NZX Listing Rules, the functions of the Board include:
• Appointing the Chair and the CEO.
• Providing counsel to, and reviewing the performance of, the CEO and Chief
Financial Officer (CFO).
• Reviewing and approving the strategic, business and financial plans prepared
by Management.
• Monitoring performance against the strategic, business and financial plans.
• Approving major investments and divestments.
• Ensuring ethical behaviour by the Company, Board, Management and employees.
• Assessing its own effectiveness in carrying out its functions.
The Board monitors these matters by receiving reports and plans from Management
and appropriate experts, and by maintaining an active programme of Company site
visits.
The Board uses committees to address certain issues that require detailed consideration
by members of the Board who have specialist knowledge and experience. The Board
retains ultimate responsibility for the functions of its committees and determines their
responsibilities.
The Board has a statutory obligation to maintain responsibility for certain matters.
It also deals directly with issues relating to the Company’s mission, appointments to the
Board, strategy, business and financial plans.
Details of the Board’s role, composition, responsibilities, operation, policies and
committees are provided in the Company’s Corporate Governance Code, available on
the Company’s website.
45New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Recommendation 2.2
Every issuer should have a procedure for the nomination and appointment of
Directors to the Board.
Director Nomination and Appointment
The Board is responsible for appointing Directors. The People, Performance and
Safety Committee manages the appointment process for new Directors and the
re-election of existing Directors in order to make a recommendation to the Board.
The nomination and appointment procedure is set out in the Committee’s charter,
which is included in the Company’s Corporate Governance Code.
When considering an appointment, the Committee will undertake a thorough check
of the candidate and their background. Where the Board determines a person is an
appropriate candidate, shareholders are notified of that and are provided with all
material information that is relevant to the decision on whether to elect or re-elect
a Director.
The People, Performance and Safety Committee also has responsibility for reviewing
the composition of the Board to ensure that the Company has access to the
most appropriate balance of skills, qualifications, experience, perspectives and
background to effectively govern the Company.
The average tenure of the current Directors is 5.8 years.
Recommendation 2.3
An issuer should enter into written agreements with each newly appointed Director
establishing the terms of their appointment.
Letter of Appointment
All new Directors enter into a written agreement with the Company setting out the
terms of their appointment.
Recommendation 2.4 and 2.8
Every issuer should disclose information about each Director in its Annual Report or
on its website, including:
a. a profile of experience, length of service, independence, and ownership interests.
b. the Director’s attendance at Board meetings; and
c. the Board’s assessment of the Director’s independence, including a description
as to why the Board has determined the Director to be independent if one of
the factors listed in table 2.4
*
applies to the Director, along with a description
of the interest, relationship or position that triggers the application of the
relevant factor.
A majority of the Board should be independent Directors.
*
NZX Corporate Governance Code, Table 2.4, January 2025.
46New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Board of Directors
The Directors are listed on page 41 of this report. A more detailed profile is available on
the Company’s website, www.kingsalmon.co.nz/governance, including information on
the year of appointment, skills, experience and background of each Director.
The roles of the Board Chair; Audit, Finance, Risk and Project Development Committee
Chair; and CEO are not held by the same person.
Ownership of the Company’s shares by Directors is encouraged rather than being a
requirement. Directors’ ownership interests are disclosed on page 76.
The Board does not have a tenure policy; however, it recognises that a regular board
refreshment programme leads to the introduction of new perspectives, skills, attributes
and experience.
Director Tenure
Interests Register
The Board maintains an Interests Register. Any Director with an interest in a transaction
with the Company must immediately disclose to the Board the nature, monetary value
and extent of the interest. A Director who is interested in a transaction may attend and
participate at a Board meeting at which the transaction is discussed but may not be
counted in the quorum for that meeting or vote in respect of the transaction, unless
it is one on which Directors are expressly required by the Companies Act 1993 to sign a
certificate or it relates to granting an indemnity.
Director period of appointment0-3 years3-9 years9 years +
Number of Directors241
Particulars of entries made in the Interests Register for the period ending 30 September
2025 are included in the Director Disclosures section on page 76.
Director Independence
On the advice of the People, Performance and Safety Committee, the Board determines
annually on a case-by-case basis, who, in its view, are independent Directors. The factors
listed in the NZX Code that may cause a Board to determine that a Director is not
independent are considered, in addition to other factors, for this purpose including that
the Director:
• is currently, or was within the last three years, employed in an executive role by the
issuer, or any of its subsidiaries;
• is currently deriving, or was within the last 12 months derived a substantial portion of
his, her or their annual revenue from the issuer;
• is currently, or was within the last 12 months, in a senior role in a provider of material
professional services (other than an external auditor) to the issuer or any of its
subsidiaries;
• is currently, or was within the last three years, employed by the external auditor to
the issuer, or any of its subsidiaries;
• currently has, or did have within the last three years, a material business relationship
(e.g. as a supplier or customer) with the issuer or any of its subsidiaries;
• is a substantial product holder of the issuer, or a senior manager of, or person
otherwise associated with, a substantial product holder of the issuer;
• currently has, or was within the last three years had a material contractual
relationship with the issuer or any of its subsidiaries, other than as a Director;
47New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
• has close family ties or personal relationships (including close social or business
connections) with anyone in the categories listed above;
• has been a Director of the entity for a period of 12 years or more.
The Board will review any determination it makes on a Director’s independence on
becoming aware of any new information that may affect that Director’s independence.
For this purpose, Directors are required to ensure they immediately advise the Board
of any new or changed relationship that may affect their independence or result in a
conflict of interest.
As at 30 September 2025, the Board had seven Directors, four of whom were
considered independent. The Board confirms that it determined Mark Dewdney, Paul
Munro, Catriona Macleod and Victoria Taylor were independent Directors as at 30
September 2025. The Board did not consider that any code factor was applicable to the
independent Directors in its assessment.
Recommendation 2.5
An issuer should have a written diversity policy which includes requirements for the
Board or a relevant Committee of the Board to set measurable objectives for achieving
diversity (which, at a minimum, should address gender diversity) and to assess annually
both the objectives and the entity’s progress in achieving them. The issuer should
disclose the policy or a summary of it.
Diversity Policy
The Company recognises the value in diversity and seeks to ensure that the Board and
workforce of the Group is as diverse as the community in which we operate. A formal
diversity policy was adopted by the Board and can be found in the Company’s Corporate
Governance Code, available on the Company’s website.
The Company does recruit, promote and compensate on the basis of merit — regardless
of gender, ethnicity, religion, age, nationality or union membership. The Company
does require that people in the workplace are treated with respect in accordance with
the Company’s Code of Conduct and Values in Action framework. The diversity policy
provides further examples of how the Group puts diversity and inclusion into practice.
The Board is committed to increasing the level of diversity at Board and SLT level
wherever possible. In the period ending 30 September 2025, the objective was set to
have no less than 40% of females in leadership positions, and no less than 40% males
in leadership positions. The Company notes this is a long-term target representation at
Board and SLT level; however, this target has not yet been achieved.
Responsibility for workplace diversity and the setting of measurable objectives is held by
the People, Performance and Safety Committee.
The gender composition of the Company is as follows:
As at 30 September 20251As at 31 January 2025
PositionFemaleMaleFemaleMale
Board3 (43%)4 (57%)3 (43%)4 (57%)
Senior Leadership Team2 (29%)5 (71%)3 (33%)6 (67%)
NZKS Organisation148 (34%)287 (66%)167 (37%)290 (63%)
As at 30 September 2025, the Company's employees were from 36 different ethnicities.
1NZKS Organisation data in this period does not include 3 team members who chose not to disclose
48New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Recommendation 2.6
Directors should undertake appropriate training to remain current on how to best
perform their duties as Directors of an issuer.
Director Training
The Board ensures that there is appropriate training available to all Directors to
enable them to remain current on how best to discharge their responsibilities and
keep up to date on changes and trends in areas relevant to their work.
In 2022, the Board engaged an external advisor to undertake a 360-degree
feedback review of the CEO and a peer and Management review of the Board,
against best practice benchmarks.
In 2024, the Board reengaged the same external advisor to assess what progress
had been made against the 2022 review. As a result of this, the following collective
development areas were identified for the Board:
• Te Ao Māori
• Project Governance
• Demand & Exposure to Customers
• Technology
The Board are committed to regularly reviewing performance, however no date has
been determined for the next review.
In addition, Directors are provided with industry information and receive copies of
appropriate company documents to enable them to perform their role. The Board
has allocated funding of $1,000 per annum for each Director to provide resources to
help develop and maintain skills and knowledge. This funding is separate from the
collective Board development initiatives.
Directors are expected to maintain their knowledge of the latest governance and
business practices in order to perform their duties.
The Board also ensures that new Directors are appropriately introduced to
Management and the business.
Recommendation 2.7
The Board should have a procedure to regularly assess Director, Board and
Committee performance.
Board Performance Evaluation
The Board annually assesses its effectiveness in carrying out its functions and
responsibilities. The Chair of the Board leads the review and evaluation of the Board
as a whole, and of the Board Committees, against their charters. The Chair of the
Board also engages with individual Directors to evaluate and discuss performance
and professional development.
In 2024, the Board engaged an external advisor to undertake a 360-degree feedback
review of the Board, against best practice benchmarks. This provided the opportunity
for a formal review of the Board as a whole and individual feedback for each
Director. The report was delivered in September 2024.
Recommendation 2.9 and 2.10
An issuer should have an independent Chair of the Board. The Chair and the CEO
should be different people.
49New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Chair Assessment
The Chair of the Board, Mark Dewdney, has been determined as independent and
the role of Chair and CEO are held by separate individuals to ensure that a conflict
of interest does not arise. The Chair of the Board is responsible for leading the Board,
facilitating the effective contributions of all Directors and promoting constructive and
respectful relations between Directors and between the Board and Management. The
Chair is also responsible for setting the Board’s agenda and ensuring that adequate
time is available for discussion of all agenda items, in particular strategic issues.
3. Principle 3 — Board Committees
The Board should use committees where this will enhance its effectiveness in key areas,
while still retaining Board responsibility.
Board Committees
The Board has established three committees:
• Audit, Finance, Risk and Project Development Committee
• People, Performance and Safety Committee
• Fish Farming Committee
Each Committee focuses on specific areas of governance and together they strengthen
the Board’s oversight of the Company. Committee membership is reviewed annually.
Each Committee has a written charter that is approved by the Board and sets out its
mandate. The charters are reviewed regularly with any proposed changes recommended
to the Board for approval. The charters can be found within the Company’s Corporate
Governance Code.
Attendance at Meetings
The table below sets out Director attendance at Board and Committee meetings during
the financial period ending to 30 September 2025.
DirectorBoard
Audit, Finance,
Risk and Project
Development
Committee
People,
Performance
and Safety
Committee
Fish Farming
Committee
Mark Dewdney (Chair)9/97/75/510/10
Jack Porus (Chair — Fish Farming Committee)9/94/59/10
Chiong Yong Tong8/97/7
Catriona Macleod 9/94/59/10
Yuen Ping Carol Chen9/9
Victoria Taylor (Chair — People, Performance and
Safety Committee)
9/94/5
Paul Munro (Chair — Audit, Finance, Risk and
Project Development Committee)
9/97/7
50
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Recommendation 3.1
An issuer’s Audit Committee should operate under a written charter. An Audit
Committee should only comprise non-executive Directors of the issuer. One member
of the committee should be both independent and have an adequate accounting or
financial background. The Chair of the Audit Committee should be an independent
Director and not the Chair of the Board.
Audit, Finance, Risk and Project Development Committee
The purposes of the Audit, Finance, Risk and Project Development Committee include:
• Provide oversight for all elements of the Company’s risk.
• Provide oversight of financial reporting, internal control systems and disclosure
requirements.
• Review the performance, appointment and services provided by the external auditor,
including assessment of auditor independence.
• Provide oversight of the climate-related risks and opportunities faced by the
Company and assist with the preparation of climate related disclosures.
• Provide oversight of the Governance of complex, transformational projects that may
be novel and carry relatively large financial expenditure and risk.
The members of the Committee are majority independent Directors and all non-
executive Directors. Paul Munro is the committee member who the Board identified as
being both independent and having an adequate accounting or financial background
(refer to Relevant Qualifications and Experience section).
The members of the Committee as at 30 September 2025 were:
• Paul Munro (Chair) — Independent, Non-Executive.
• Mark Dewdney — Independent, Non-Executive.
• Chiong Yong Tiong — nominated as a Director by Oregon Group Limited and thus
not Independent.
The Chair of the Audit, Finance, Risk and Project Development Committee and the
Board Chair are different people.
Relevant Qualifications and Experience
Paul Munro (Audit, Finance, Risk and Project Development Committee Chair) — Paul
is a Chartered Accountant Fellow (FCA) of Chartered Accountants Australia New
Zealand (CAANZ) and a Chartered Fellow (CfInstD) of the New Zealand Institute
of Directors (IoD). Paul has extensive financial and commercial experience across
a broad cross section of companies and industries including a 24-year career as a
Corporate Finance Partner at Deloitte.
Mark Dewdney — Mark holds a Bachelor of Management Studies with an extensive
career across primary industries in both executive and governance capacities.
Chiong Yong Tiong — Yong holds a Masters in Finance and Economics with an
extensive career across primary industries and property development.
The Audit, Finance, Risk and Project Development Committee held seven meetings
during the period to 30 September 2025. The agenda items for each meeting
generally relate to financial governance, external financial reporting, external audit,
major projects, and risk management.
51New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Recommendation 3.2
Employees should only attend Audit Committee meetings at the invitation of the
Audit Committee.
Meeting Attendance
All Directors who are not members of the Audit, Finance, Risk and Project
Development Committee and employees are only entitled to attend meetings of
the Audit, Finance, Risk and Project Development Committee at the invitation
of the Audit, Finance, Risk and Project Development Committee.
The CEO, CFO, Head of Finance and Sustainability, Head of Performance and
Strategy and General Counsel are regularly invited to attend Audit, Finance, Risk
and Project Development Committee meetings. The Committee also regularly holds
private sessions with the external auditors, from which Management are excluded.
Recommendation 3.3
An issuer should have a Remuneration Committee which operates under a written
charter (unless this is carried out by the whole Board). At least a majority of
the Remuneration Committee should be independent Directors. Management
should only attend Remuneration Committee meetings at the invitation of the
Remuneration Committee.
Recommendation 3.4
An issuer should establish a nomination committee to recommend Director
appointments to the Board (unless this is carried out by the whole Board), which
should operate under a written charter. At least a majority of the nomination
committee should be independent Directors.
People, Performance and Safety Committee
The People, Performance and Safety Committee’s role is to assist the Board by:
• Overseeing the management of people, performance and safety activities of
the Company.
• Overseeing the Company’s remuneration structure, policies, procedures and
practices to ensure the Company’s remuneration is fair and reasonable.
• Defining the roles and responsibilities of the Board and senior Management.
• Reviewing and making recommendations on Board composition and succession.
In particular, the People, Performance and Safety Committee’s role is to ensure that
the Board is balanced in terms of skills and knowledge and to ensure that the method
of nomination and appointment of Directors is transparent.
The People, Performance and Safety Committee shall comprise of, wherever possible,
a majority of independent Directors.
The members of the Committee as at 30 September 2025 were:
• Victoria Taylor (Chair) — Independent, Non-Executive.
• Mark Dewdney — Independent, Non-Executive.
• Catriona Macleod — Independent, Non-Executive.
• Jack Porus — nominated as a Director by Oregon Group Limited and thus not
Independent.
No Executive Directors sit on this Committee.
The Committee held five meetings during the period ending 30 September 2025.
52New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Recommendation 3.5
An issuer should consider whether it is appropriate to have any other Board
committees as standing Board committees. All committees should operate under
written charters. An issuer should identify the members of each of its committees,
and periodically report member attendance.
Fish Farming Committee
A Fish Farming Committee has been established to consider all aspects of NZKS'
fish farming.
The primary functions of the Fish Farming Committee are:
• To assist the Board in considering key aspects of NZKS' fish farming.
• To support the ongoing improvement in fish health and farming strategies.
• Ensure the identification of both the opportunities and risks to the Company’s
fish farming operations.
• Provide updates to the Board to demonstrate that fish performance is being
appropriately managed.
The members of the Committee as at 30 September 2025 were:
• Jack Porus (Chair) — nominated as a Director by Oregon Group Limited and thus
not Independent.
• Mark Dewdney — Independent, Non-Executive.
• Catriona Macleod — Independent, Non-Executive.
The Committee held ten meetings during the financial period to 30 September 2025.
Recommendation 3.6
The Board should establish appropriate protocols that set out the procedure to be
followed if there is a ‘control transaction’ for the issuer including the procedure for
any communication between the issuer’s Board and Management and the bidder. The
Board should disclose the scope of independent advisory reports to shareholders. These
protocols should include the option of establishing an independent control transaction
committee, and the likely composition and implementation of an independent control
transaction committee.
Control Transaction Protocols
The Board has documented and adopted a series of protocols to be followed in the
event of a control transaction being made, including communication between the
issuer’s Board and Management and the bidder.
It is proposed that the Board would form a committee to oversee the protocols and act
as the Control Transaction Committee. The Committee would have responsibility for
managing the control transaction in accordance with the New Zealand Takeovers Code
and other applicable legislation.
53New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
4. Principle 4 — Reporting and Disclosure
The Board should demand integrity in financial and non-financial reporting, and in the
timeliness and balance of corporate disclosures.
Recommendation 4.1
An issuer’s Board should have a written continuous disclosure policy.
Shareholder Communications and Market Disclosure
The Company’s Board is committed to the principle that high standards of reporting
and disclosure are essential for proper accountability between the Company and its
investors, employees and stakeholders.
The Company achieves these commitments, and the promotion of investor
confidence, by ensuring that trading in its shares takes place in an efficient,
competitive and informed market. The Company has in place a written Shareholder
Communications and Market Disclosure Policy designed to ensure this occurs. The
policy includes procedures intended to ensure that disclosure is made in a timely and
balanced manner and in compliance with the NZX Listing Rules, such that:
• All investors have equal and timely access to material information concerning
the Company, including its financial situation, performance, ownership and
governance.
• Company announcements are factual and presented in a clear and balanced way.
The CFO is responsible for the Company’s compliance with NZX and ASX continuous
disclosure requirements and the Board is advised of, and considers, continuous
disclosure issues at each Board meeting or whenever else required.
Significant market announcements, including the preliminary announcement of the half
year and full year results, the financial statements for those periods, and any advice of a
change in earnings forecast, are approved by the Board.
Directors consider at each Board meeting whether there is any material information
which should be disclosed to the market.
Recommendation 4.2
An issuer should make its Code of Ethics, Board and Committee charters and the
policies recommended in the NZX Code, together with any other key governance
documents, available on its website.
The Company’s key Corporate Governance documents, including charters and policies,
can be found at www.kingsalmon.co.nz/governance
Recommendation 4.3
Financial reporting should be balanced, clear and objective.
Financial Reporting
The Board is responsible for ensuring the integrity and timeliness of the Group's financial
reporting. As noted above under ‘Board Committees’, the Audit, Finance, Risk and
Project Development Committee monitors financial reporting risks in relation to the
preparation of the financial statements.
The Audit, Finance, Risk and Project Development Committee, with the assistance of
management, works to ensure that the financial statements are founded on a sound
system of risk management and internal control, and that the system is operating
effectively in all material respects in relation to financial reporting risks.
54New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
The Audit, Finance, Risk and Project Development Committee oversees the quality and
integrity of external financial reporting including the accuracy, completeness, balance
and timeliness of financial statements. It reviews half-year and annual financial
statements and makes recommendations to the Board concerning accounting policies,
areas of judgement, compliance with financial reporting standards, stock exchange
and legal requirements, and the results of the external audit.
All interim and full-year financial statements are prepared in accordance with relevant
financial standards.
Recommendation 4.4
An issuer should provide non-financial disclosure at least annually, including
considering environmental, social and governance (ESG) factors and practices. It
should explain how operational or non-financial targets are measured. Non-financial
reporting should be informative, include forward-looking assessments, and align with
key strategies and metrics monitored by the Board.
Non-Financial Reporting
The Company is committed to providing non-financial disclosure that is balanced,
clear and objective. Reporting of environmental, social and governance factors is
contained in this Annual Report. The Company is continuing to develop its non-
financial reporting metrics. Specifically, a recent focus was establishing the Company’s
Greenhouse Gas (GHG) emissions baseline. The GHG emissions are subject to an
external limited assurance engagement. The GHG emissions form another input to
contribute to the continued development of the Company’s non-financial reporting.
Non-financial reporting is provided throughout this Annual Report and is referenced
throughout the following sections:
• Overview
• Healthy Environments
• Healthy Communities
• Healthy Kai
• Leadership & Corporate Governance
Climate Reporting
In October 2025, it was announced that as part of the the Financial Markets Conduct
Amendment Bill the climate reporting threshold for listed issuers was proposed to lift
to a market capitalisation threshold of $1 billion. The Financial Markets Authority (FMA)
has provided interim relief in the form of taking a ‘no action’ approach to the 2025/2026
reporting period for affected entities who are expecting their climate reporting
obligations to cease once legislation is passed.
Based on the proposed changes NZK will no longer be a Climate Reporting Entity (CRE)
and as such the Board has determined that we will no longer prepare CRD’s with effect
from the current reporting period. The Company has instead provided GHG emission
information in the Annual Report.
55New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
5. Principle 5 — Remuneration
The remuneration of Directors and Executives should be transparent,
fair and reasonable.
Recommendation 5.1
An issuer should have a remuneration policy for the remuneration of Directors.
An issuer should recommend Director remuneration to shareholders for
approval in a transparent manner. Actual Director remuneration should be
clearly disclosed in the issuer’s Annual Report.
Recommendation 5.2
An issuer should have a remuneration policy for remuneration of executives,
which outlines the relative weightings of remuneration components and
relevant performance criteria.
Recommendation 5.3
An issuer should disclose the remuneration arrangements in place for the CEO
in its Annual Report. This should include disclosure of the base salary, short-
term incentives and long-term incentives and the performance criteria used to
determine performance-based payments.
Remuneration Report
This Remuneration Report outlines the Company’s overall reward strategy for the
period to 30 September 2025 and provides detailed information on the remuneration
arrangements in this period for the Directors of the Company, including the CEO.
Remuneration Governance
The Company’s Remuneration Policy, which may be amended from time to time, is
reviewed regularly. The Company has also established a number of additional policies to
support a strong governance framework and uphold ethical behaviour and responsible
decision making. The Company has had regard to the NZX Remuneration Reporting
Template in preparing this report.
The People, Performance and Safety Committee is responsible for making
recommendations to the Board on remuneration policies and packages for Directors, the
CEO and nominated executives. The People, Performance and Safety Committee’s role is
set out in the People, Performance and Safety Committee’s Charter, which is available
on the Company’s website at www.kingsalmon.co.nz/governance
All Directors are entitled to attend meetings of the People, Performance and Safety
Committee by standing invitation provided that Executive Directors are not entitled
to attend meetings where they are conflicted. Employees are only entitled to attend
meetings of the People, Performance and Safety Committee at the invitation of the
People, Performance and Safety Committee.
56New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
The primary objectives of the Remuneration Policy are to provide a competitive
and flexible structure that reflects market practice but is tailored to the specific
circumstances of the Company and which reflects each person’s duties and
responsibilities, in order to attract, motivate and retain people of the appropriate
quality. This includes the Company’s responsibility to monitor diversity and ensure
pay equity.
The People, Performance and Safety Committee completed a review of the
Remuneration Policy in May 2024. As part of this review, the policy was updated to
include the remuneration of Directors.
The People, Performance and Safety Performance Committee reviews market data
on remuneration structure and quantum. In September 2024, an external review
was conducted on the CEO remuneration package. The remuneration packages of
the CEO and nominated executives are structured to include a Short-Term Incentive
Scheme (STI Scheme) that is directly linked to the overall financial and operational
performance of the Company. The CEO and nominated executives may also be
invited to participate in the Company’s Long-Term Incentive Performance Share
Rights Scheme (LTI PSR Scheme). The long-term benefits of the LTI PSR Scheme are
currently conditional upon the Company’s total shareholder return meeting certain
performance hurdles.
Further information on the People, Performance and Safety Committee, including
the responsibilities of the People, Performance and Safety Committee and meeting
attendance during the period ending 30 September 2025, can be found on page 50
and 52 of the Annual Report.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive
Director remuneration is separate and distinct from the remuneration of the CEO and
other Executives.
Components of Compensation — Non-Executive Directors
a. Remuneration
The Board seeks to set aggregate remuneration for non-executive Directors at a level
which provides the Company with the ability to attract and retain Directors of the
highest calibre, whilst incurring a cost which is acceptable to shareholders.
No remuneration is payable to non-executive Directors unless it is approved by the
Company’s shareholders. The NZX Listing Rules specify that shareholders can approve a
per Director remuneration amount or an aggregate Directors’ fee pool.
The aggregate remuneration paid to non-executive Directors and the manner in which
it is apportioned amongst Directors is reviewed annually, with any proposed increase
in the aggregate pool put to shareholders for approval at the Company’s next Annual
Shareholders’ Meeting. The Board reviews its fees to ensure the Company’s non-executive
Directors are fairly remunerated for their services, recognising the level of skill and
experience required to fulfil the role, and to enable the Company to attract and retain
talented non-executive Directors. The process involves benchmarking against a group of
peer companies. In addition, the Board reviews the Committee structure and appropriate
level of resourcing required to make an on-going contribution to long term value creation.
Shareholders approved an aggregate fee pool of $660,000 at the June 2024 Annual
Shareholders’ Meeting. The Company had seven Directors at the time the fee pool
was approved.
57New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
In connection with the increase in the Directors’ fee pool, the Board commissioned an
independent Directors’ fees review from Strategic Pay, which resulted in a recommended
increase in Director fees based on several factors. These factors included NZKS’
organisation size, ownership, industry and relevant market data. This market data
includes market data from the 2024 Strategic Pay NZ Directors’ Fee Report, and relevant
market comparator information based on NZKS market position.
Each non-executive Director receives a fee for services as a Director of the Company.
An additional fee is also paid to the Committee Members (excluding Board Chair) of
each Board committee. The payment of an additional fee recognises the additional time
commitment required by the committee Chair/Members. Directors are also entitled to
be reimbursed for costs associated with carrying out their duties. The table below sets
out the current allocation of the approved Director fee pool to the Company’s Board
and Committee roles:
Governance BodyPositionAnnual Fee
Board
Chair$140,000
Director$70,000
Audit, Finance, Risk and Project Development
Committee
Chair$15,000
Member$3,000
People, Performance and Safety Committee
Chair$15,000
Member$3,000
Fish Farming Committee
Chair$15,000
Member$3,000
Non-executive Directors have no entitlement to any performance-based remuneration or
participation in any share-based incentive schemes. This approach reflects the differences
in the role of the non-executive Directors, which is to provide oversight and guide strategy,
and the role of Management, which is to operate the business and execute the Company’s
strategy. Non-executive Directors are encouraged to be shareholders but are not required
to hold shares in the Company.
A breakdown of the Board and Committee fees paid/payable during the period ending 30
September 2025 are set out in the table below:
Fees paid for serving on Committees
1
Total
DirectorBase Fee
Audit, Finance,
Risk and Project
Development
Committee
People,
Performance
and Safety
Committee
Fish Farming
Committee
Fees paid
/ payable
Mark Dewdney (Chair)$93,333-_-$93,333
Jack Porus (Chair — Fish
Farming Committee)
$46,667-$2,000$10,000$58,667
Chiong Yong Tiong$46,667$2,000--$48,667
Catriona Macleod$46,667-$2,000$2,000$50,667
Yuen Ping Carol Chen$46,667-_-$46,667
Victoria Taylor (Chair —
People, Performance and
Safety Committee)
$46,667-$10,000-$56,667
Paul Munro (Chair — Audit,
Finance, Risk and Project
Development Committee)
$46,667$10,000_-$56,667
Total$373,335$12,000$14,000$12,000$411,335
1
This table represents the Director fees paid/payable for the 8-month reporting period to 30 September 2025.
58New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Remuneration of CEO and Employees
The number of employees of the
Group (including former employees),
not being Directors, who received
remuneration and other benefits in
excess of $100,000 in the period to
30 September 2025 is set out in the
following remuneration bands:
Components of Compensation — CEO and Other Nominated Senior Leaders
a. Structure
The Company aims to reward the CEO and nominated Senior Leaders with a level
and mix of remuneration commensurate with their position and responsibilities
within the Group, so as to:
• Reward them for Company performance against targets set by reference to
appropriate benchmarks and key performance indicators.
• Align their interests with those of shareholders.
• Ensure total remuneration is competitive by market standards.
Remuneration consists of both fixed and variable remuneration components. The
variable remuneration component comprises the Short-Term Incentive Scheme and
the Long-Term Incentive Scheme.
The proportion of fixed remuneration and variable remuneration is established
for the CEO and for each nominated Senior Leader by the Board, following
recommendations from the People, Performance and Safety Committee and the
CEO (in the case of the nominated Senior Leaders only).
The remuneration packages for the CEO and nominated Senior Leaders are all
subject to Board approval. A new LTI scheme was approved by the Board in 2024,
and grants were made under this scheme in 2024 and 2025.
Remuneration
1
FY25 (Sept)FY25 (Jan)
8 month12 month
$100,000 to $109,999420
$110,000 to $119,999312
$120,000 to $129,99955
$130,000 to $139,99947
$140,000 to $149,99935
$150,000 to $159,99924
$160,000 to $169,99926
$170,000 to $179,99903
$180,000 to $189,99912
$190,000 to $199,99901
$200,000 to $209,99903
$210,000 to $219,99913
$220,000 to $229,99901
$230,000 to $239,99901
$240,000 to $249,99901
$250,000 to $259,99901
$260,000 to $269,99901
$280,000 to $289,99910
$290,000 to $299,99910
$310,000 to $319,99901
$330,000 to $339,99911
$370,000 to $379,99900
$400,000 to $409,99901
$420,000 to $429,99901
$490,000 to $499,99901
$530,000 to $539,99910
$660,000 to $669,99901
1
Includes redundancy and other prescribed fringe benefits.
59New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
The total value of other benefits paid to the CEO for the year ending 31 January 2025
and the 8-month period ending 30 September 2025 (including under the STI Scheme
and LTI Scheme) is as follows:
Pay for performance
CEOYear
Base
salary
1
Benefits
2
Total Fixed
remuneration
Short-Term Incentive (STI)Long-Term Incentive (LTI)
Total at risk
Total
Remuneration
Paid
3&4
Amount paid as a % of
maximum Award
Earned
5
Amount earned as
a % of maximum
Award
Earned
Amount earned as a %
of maximum Award
Carl Carrington
FY25
(Jan)
$560,099$24,582$584,681--$86,21350%-N/A$86,213$670,894
Carl Carrington
FY25
(Sept)
$387,923$21,350$409,273$112,07665%$40,23335%-N/A$152,309$561,582
1
Base salary is the salary that has been paid to an employee, excluding any additional compensation benefits.
2
Benefits include superannuation payments, insurance premiums, any cashed in leave and vehicle allowances.
3
STI amount paid in FY25 (Sept) included the amount earned in FY25 (Jan), which was adjusted down by the
Board to $77,591. In addition to this the company engagement score target was achieved (as assessed in April
2025) which added $34,485 to the FY25 (Jan) STI. These two amounts represent the total STI payment received
by the CEO of $112,076 in FY25 (Sept).
4
Short-Term Incentive payments correspond to the achievement of performance targets in that reporting
period (i.e. The Short-Term Incentive in FY25 (Sept) relates to the achievement of performance related targets
in FY25 (Jan), even though it was paid in FY25 (Sept)).
5
Short-Term Incentive amounts payable that the employee is currently entitled to receive, subject to Board
approval. (i.e. The Short-Term Incentive in FY25 (Sept) relates to the achievement of performance related
targets in FY25 (Sept), even though these will be paid in FY26).
60New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
1. Fixed Annual Remuneration
Remuneration levels are reviewed annually to ensure that they are appropriate for the
responsibility, experience and performance of the CEO and each nominated Senior
Leader and are competitive with the market.
In addition, the overall mix of variable compensation and their terms are also
considered when setting and/or reviewing fixed remuneration.
The CEO and nominated Senior Leaders receive their fixed annual remuneration in
cash and a limited range of prescribed benefits such as superannuation, motor vehicle
and health insurance. The total employment cost of any remuneration package,
including fringe benefit tax, is considered in determining an employee’s fixed annual
remuneration.
2. Variable Remuneration — STI Scheme
The objective of the STI Scheme is to link the achievement of the annual financial and
operational targets with the remuneration received by the Senior Leaders charged with
meeting those targets. The total potential remuneration under the STI Scheme is set at
a level to provide sufficient incentive to the Senior Leaders to achieve the targets such
that the cost to the Company is flexible and in line with the trading outcome for the
year.
For the STI, participants’ performance against an agreed set of financial and non-
financial metrics is monitored on an ongoing basis throughout the financial period by
the People, Performance and Safety Committee.
The People, Performance and Safety Committee considers that the above targets align
with the objectives of delivering sustainable earnings. The Company intends to develop
more ESG targets that will be included within performance objectives. This is an area
that will be reassessed annually as the Company matures in this reporting space.
The People, Performance and Safety Committee considers the performance against the
targets and determines the amount, if any, to be allocated to the CEO and nominated
Senior Leaders. STI Scheme payments are delivered as a taxable cash bonus and are
payable on completion of the annual audited financial statements .
STI Scheme payment values are set as a percentage of base cash remuneration, being
30% for the CEO and 25% for the other nominated Senior Leaders for the financial
period to 30 September 2025. For the financial period to 30 September 2025, in addition
to the CEO, there were 5 nominated Senior Leaders in the STI Scheme.
In addition to the CEO and nominated Senior Leaders (noted above) a number of
individuals within the wider senior management team are entitled to a STI of between
10% to 20% of their base cash remuneration.
The STI awards in respect of the period to 30 September 2025 are assessed as earned in
the period ending 30 September 2025 but will be paid after release of the results for the
period ending 30 September 2025 (i.e. will be paid during FY26). Any STI award will be
pro-rated for the shortened financial period.
In addition to the STI Scheme, the Board reserves the ability to pay ad hoc bonus
payments to any employee at the Board's discretion.
61New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Performance HurdlesWeightingDescription
Profitability30%
Board approved budgeted pro-forma operating
EBITDA target
Productivity20%
Board approved Gross Margin targets. Gross
Margin is defined as sales less direct costs (excludes
corporate overheads)
Cost control20%
Board approved overhead targets. Overheads
include corporate office expenditure including
corporate personnel costs, advertising and
promotional spend and professional services fees etc
Return on Capital15%
Board approved return on capital targets calculated
as net profit after tax/average equity
Health & Safety
0% (target must be achieved
for STI to be eligible)
Board approved Health & Safety conversations and
site visit targets
Individual target15%
A specific deliverable set annually by the NZKS
Board
Performance HurdlesSTI WeightingAwardedEarned
% Earned of
Awarded
Pro-forma operating
EBITDA results
30%$34,485-0%
Gross Margin result20%$22,990-0%
Overhead cost within
budget
20%$22,990$22,990100%
Net profit / average
equity
15%$17,243-0%
Completion of Health &
Safety conversations
----
Individual target15%$17,243$17,423100%
Total100%$114,951$40,23335%
62
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Variable Remuneration — LTI Scheme
The LTI Scheme has been designed to link reward with key performance indicators that
drive sustainable growth in shareholder value over the long term. The objectives of the
LTI Scheme are to:
• Align the CEO and nominated participants’ interests with those of shareholders.
• Help provide a long-term focus.
• Retain high calibre senior employees by providing an attractive equity-based
incentive that builds an ownership of the Company mindset, encouraging executives
to think and act like owners.
There are three LTI schemes discussed in this section:
• Executive Share Ownership Scheme (pre-IPO).
• LTI Share Scheme (tranches issued between 2016–2022).
• LTI PSR scheme (Commenced July 2024).
Executive Share Ownership Scheme (pre-IPO)
The CEO and certain other senior executives were participants in an Executive Share
Ownership Scheme prior to the IPO, in which participants have been provided with an
interest-free loan of up to 200% of the amount which the senior executive invests in the
Company. As at 30 September 2025, 390,021 shares are held by current or former senior
executives via the Ownership Scheme, partly funded by interest free loans of $193,750.
As at 30 September 2025, there were 3 nominated participants remaining in the
Executive Share Ownership Scheme, (31 January 2025: 3 nominated executives).
These shares, which have been subject to sale restrictions since the IPO, were released
from escrow on announcement of the 2018 financial results.
LTI Share Scheme (tranches issued between 2016–2022)
Under the LTI Share Scheme, the CEO and nominated participants are offered an
interest-free loan which is to be applied to acquire shares in the Company. Shares
acquired under the LTI Share Scheme are held by a custodian and will only vest
subject to the achievement of performance hurdles and employment tenure. All
dividends paid during this period are offset against the loan balance. Once the
shares vest, the employee remains obligated to repay the outstanding balance of
the loan.
If an employee leaves employment before the expiry of the three-year period, the
custodian may exercise a call option to have the employee’s beneficial interest in
the shares transferred to it in consideration of the custodian taking the balance of
the loan. Any shares so transferred can be used for future grants or alternatively,
the custodian is authorised to sell that employee’s shares with the proceeds
applied to repay the balance of the loan, with any deficit covered by the Company
and any surplus retained by the Company.
Each employee’s loan amount (which determines how many shares will be
acquired) is set as a percentage of their base salary and selected employees will be
offered a loan for this amount if the criteria set by the Board are met.
The last tranche issued under this scheme was in FY22. NZKS’ CEO is not a
participant in the LTI Share Scheme, having joined NZKS in August 2023.
As of 30 September 2025, 277,154 vested shares are held by current or former
senior executives via the LTI Share Scheme, funded by interest free loans of
$279,924. As at 30 September 2025, there were 12 nominated participants
remaining in the LTI Share Scheme.
63New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
LTI PSR scheme (Commenced July 2024)
In July 2024, the Board adopted a performance share rights (PSR) scheme for the CEO
and nominated participants (LTI PSR Scheme). Under the LTI PSR Scheme, participants
are awarded PSRs which gives them the right to receive ordinary shares in the
Company subject to achieving certain performance hurdles and remaining employed
with the Group for a certain period. The objectives of the LTI PSR Scheme are to
reward and retain key employees, to drive longer-term performance and to encourage
longer-term decision making by employees. The LTI PSR Scheme also aims to align the
incentives of participants with the interests of the Company’s shareholders.
The performance hurdle used for all grants made to date under the LTI PSR Scheme
is a relative total shareholder return (TSR) hurdle. The value of PSRs awarded to
participants in the LTI PSR Scheme is set at a fixed amount which reflects between
10% and 35% of participants’ base cash remuneration. The number of PSRs issued
under each grant is then determined based on the market value of NZKS’ shares using
a volume weighted average price over the 20 trading days up to and including the
commencement date of the grant.
CEO remuneration under LTI PSR Scheme
The value of PSRs awarded to the CEO annually under the LTI PSR Scheme is set at a
fixed amount which reflects 35% of the CEO’s base cash remuneration.
Grants of PSRs under the LTI PSR Scheme with vesting dates after 30 September 2025
were made on:
• 1 July 2024 and commenced on 29 May 2023 (FY24(i) Grant),
• 1 July 2024 and commenced on 22 January 2024 (FY24(ii) Grant),
• 1 July 2024 and commenced on and 29 April 2024 (FY25 Grant); and
• 18 July 2025 and commenced on 30 April 2025 (FY26 Grant)
The key terms and conditions related to the PSRs issued under the LTI PSR Scheme are
as follows:
• The PSRs are granted for nil consideration and have a nil exercise price.
• The participant must remain an employee of the Company as at the relevant
vesting date.
• The PSRs issued under the FY24(i) Grant, FY24(ii) Grant, FY25 Grant and FY26 Grant
each comprise a single tranche.
• Provided the performance hurdle has been achieved on the vesting date, the PSRs
will become eligible for exercise by the participant. Following the Company’s change
in balance date from January to September the vesting dates are:
-for the FY24 (i) Grants and FY24 (ii) Grants: the date that is 21 trading days
following the release of the Company’s financial results for the period ended
31 March 2026 to the NZX and ASX.
-for the FY25 Grant: the date that is 21 trading days following the release of
the Company’s financial results for the period ended 31 March 2027 to the
NZX and ASX.
-for the FY26 Grant: the date that is 21 trading days following the release of
the Company’s financial results for the period ended 30 September 2028 to
the NZX and ASX.
• The performance hurdle is a relative TSR hurdle. PSRs will become eligible for
exercise where the Company’s TSR from the commencement date to the vesting
date is a positive amount and is greater than the 50th percentile TSR of the NZX50
(excluding the Company and banking groups) at the commencement date for each
Grant (NZX Comparator Group).
64New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
• The percentage of PSRs that become eligible for exercise will increase on a straight-
line basis from 50% where the Company’s TSR is a positive amount and is equal to
the 50th percentile of the NZX Comparator Group to 100% where the Company’s TSR
is a positive amount and is equal to or greater than the 75th percentile of the NZX
Comparator Group.
• The TSR will be calculated using the volume weighted average sale price of the
relevant share or unit on its designated exchange over the 20 trading days prior to
and excluding the commencement date or the vesting date (as applicable).
• On the vesting date, subject to achieving performance hurdles, each PSR entitles
the CEO to one ordinary share. The CEO is liable for tax on the shares received at this
point. The Company may, in consultation with the CEO, elect to pay this tax on his
behalf through PAYE, subject to appropriate arrangements being entered into for the
reimbursement by the CEO of the tax to the Company.
Awarded during the reporting
period
PSRs lapsed
during the
reporting period
Shares Vested during the reporting period
Shares issued/transferred during the reporting
period
Balance of PSRs
at 30 September
2025
Scheme
PSR Award
Date
Vesting
Date
Balance of PSRs
at 31 January
2025
PSRs Awarded
Market Price at
Award
Shares Vested
Market Price at
Vesting Date
Vesting Date
Shares issued /
transferred
Market Price
at issue /
transfer date
Issue / transfer
date
FY24(ii)July 2024April 2026368,774---------368,774
FY25July 2024April 2027720,974---------720,974
FY25July 2025
December
2028
-615,176$134,108-------615,176
Total1,089,748615,176$134,1081,704,924
No PSRs were eligible for vesting during the period ending 30 September 2025.
The PSRs under the FY24(i) Grant and FY24(ii) Grant will not become eligible
for vesting until 31 March 2026. The PSRs under the FY25 Grant will not become
eligible for vesting until 31 March 2027. The PSRs under the FY26 Grant will not
become eligible for vesting until the date that is 21 trading days following the
release of the Company’s financial results for the period ended 30 September
2028 to the NZX and ASX.
A summary of the PSRs granted to the CEO which lapsed or vested during the
period ending 30 September 2025 or which remain subject to vesting conditions
is shown below:
65New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Loans Outstanding on Vested Shares
The table below shows the loans associated for shares which have vested under both the
Executive Share Ownership scheme prior to the IPO and LTI Schemes:
SchemeIssue dateVesting dateHurdle PriceShares GrantedShares ForfeitedShares Vested
Shares Settled/
sold back to
NZKS
Shares remaining
with Loan
Balance
Loans in respect
of these shares
Less dividend
received after
tax paid
Net loans
Executive Share Ownership Scheme (pre-IPO)
Senior Executive
Share Ownership
Scheme
2011–201629 Aug 2018 $0.48 3,062,164 - 3,062,164 (2,672,143)390,021 $193,750 - $193,750
LTI scheme (tranches issued between 2016 — 2022)
LTI IPO31 Aug 20161 Sep 2019 $1.12 993,671 (220,500) 773,171 (563,086)210,085 $235,295 ($33,234) $202,061
LTI 2017a29 Sep 20171 Sep 2020 $1.22 270,274 (15,073) 255,201 (194,547)60,654 $73,998 ($6,773) $67,225
LTI 2017b29 Sep 20171 Sep 2020 $1.77 47,241 (17,611) 29,630 (23,215)6,415$11,355($717)$10,638
Total 1,311,186 (253,184) 1,058,002 (780,848)277,254$320,648($40,724)$279,924
Total 4,373,350 (253,184) 4,120,166 (3,452,991)667,175$514,398($40,724)$473,674
66
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
6. Principle 6 — Risk Management
Directors should have a sound understanding of the material risks faced by the issuer
and how to manage them. The Board should regularly verify that the issuer has
appropriate processes that identify and manage potential and material risks.
Allocation DateVesting DateNumber of Shares
Scheme
Balance at start
of year
Sold during the
year
Balance at the
end of the year
Employee Share
Ownership Plan
19 Oct 201619 Oct 201638,820(11,428)27, 39 2
Employee Share Ownership Scheme
At the time of the Company’s IPO, it established an Employee Share Ownership Scheme
to facilitate an increase in the level of participation by employees as shareholders, which
improves the alignment of interests between employees and shareholders. Under the
scheme, each eligible employee was offered an interest free loan up to $5,000 to fund
50% of the subscription price for the shares which the employee wished to acquire in the
Company. Employees are obliged to repay their loan when the shares are sold or when
they leave the Company.
A total of 187,076 shares were issued at the time, supported by loans of $104,762 from
the Company. During the period to 30 September 2025, 2 employees holding shares left
the Company (31 January 2025: 2), and no shares have been sold by current employees
(31 January 2024: 0). As at 30 September 2025, the following shares were held by
employees under the Employee Share Ownership Scheme.
Recommendation 6.1
An issuer should have a risk management framework for its business and the issuer’s
Board should receive and review regular reports. An issuer should report the material
risks facing the business and how these are being managed.
Risk Management Framework
The Board is responsible for ensuring that key business risks are identified, and that
appropriate controls and procedures are in place to effectively manage those risks.
Risk registers are regularly reviewed by senior Management and any changes to material
risks are reported to the Board.
The Audit, Finance, Risk and Project Development Committee has overall responsibility
for ensuring that the Company’s risk management framework is appropriate and that it
appropriately identifies, considers and manages risks. In addition, risks are also considered
at the other committees and reported through to the Board by committee Chairs.
Risk management is an integral part of the Company’s business. A risk management
framework incorporating a risk register is used to identify those situations and
circumstances in which the Company may be materially at risk and for which
risk mitigation activities are appropriate. This approach is intended to provide a
comprehensive, company-wide awareness of risk, supported by a consistent method of
identifying, assessing, controlling, monitoring and reporting existing and potential risks
to the Company’s business.
67New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
AreaDescription of RiskKey Strategies to Mitigate
Fish mortalityFish mortality has a significant impact on the profitability and financial stability of NZKS as only
the fish that survive to the point of harvest are able to be sold. Every year, a number of fish will
die prior to harvest due to a range of factors.
The cause of fish mortality is multi-factorial with the dominant correlation currently being
prolonged elevated water temperature which increases stress and reduces the salmon’s
resistance to bacterial and other pathogens. Other factors include opportunistic microorganism/
diseases, feed-related issues, failed smoltification, predators, and other stressors, individually
or in combination. Whilst the interconnectivity of these factors is difficult to predict with any
certainty, rising water temperatures are increasingly becoming a major concern given the
impact of climate change.
Failed smoltification (the single largest mortality reason by fish number) is not linked to warmer
waters does not create a large mortality volume in terms of biomass or direct cost but has a
significant opportunity cost due to lost potential harvest.
While the trajectory of climate change is impossible to control at a company level, NZKS currently manages
the risk of fish mortality by: fallowing warmer, low flow sites (either seasonally over summer or completely),
actively monitoring fish health and maintaining appropriate net cleaning regimes.
Immunisation of young salmon against specific pathogens at the freshwater stage has also been in place for
several years to build resilience prior to seawater entry.
NZKS is also undertaking R&D activities including researching thermotolerance within its King salmon families
to provide potential future mitigants against temperature risk.
Projects to reduce runting are also underway including works involving manipulating salinity, photoperiod and
diet options.
Other key mitigation strategies include ongoing Diet trials to improve nutrition, and grading activities to
remove early runts which may be a reservoir for disease.
The ability to actively treat fish is also being progressed. This would take the form of antibiotics top-coated to
feed, using a customised top coating machine. This would only be undertaken under the strict direction and
supervision from a vet.
Access to
waterspace
and water
Changes to local and central government policy surrounding aquaculture present a material
concern for NZKS, with the possibility that policy changes, however well intentioned, may
present an additional compliance burden, resulting in an increase to NZKS costs and/ or reduce
the biomass capacity at current consented and future farming locations. These impacts,
individually or in combination, may make farming salmon uneconomic. In addition, the
Company’s processing operations require access to water to process our harvested fish.
Recent legislative reforms e.g. Resource Management (Extended Duration of Coastal Permits for Marine
Farms) Amendment Bill has mitigated risks to securing tenure at existing seawater- consented sites (all farms
extended 20 years, no further than 2050). The conditions on some of these sites will require updating.
NZKS is also undertaking monitoring observations at a second offshore site to provide future space options.
NZKS announced on 9 September 2025 that its purchase of a new commercial processing site went
unconditional. [The purchase successfully settled on 7 October 2025]. The existing processing facility in Nelson
will continue operating for the foreseeable future whilst development opportunities are explored for the new site.
Key risks that NZKS has identified are provided below, risks are dynamic and as such
this section does not (and does not purport to) set out all of the risks facing NZKS
as some risks may be unknown and other risks, currently believed to be immaterial,
could turn out to be material.
68New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
AreaDescription of RiskKey Strategies to Mitigate
Loss of key
facilities
As an integrated King salmon farming operation NZKS has a number of critical facilities. The loss
of any one of the facilities would have a significant impact on NZKS ability to grow, harvest and
sell King salmon.
Loss of key facilities could mean an inability to operate, or delays in production if livestock
cannot be transferred from one to the other. Delays in production, harvesting, and processing
operations could all lead to delays in getting product to consumers.
This could, depending on the severity, significantly impact both the financial performance and
position of NZKS.
Key facilities include:
Tentburn and Tākaka freshwater facilities, Nelson processing facility, seafarms across the
Marlborough Sounds, and the new Blue Endeavour site in Blenheim.
Under the current operating model key facilities create a single point of risk within the NZKS supply chain.
Within the constraints of current operations for NZKS it is not possible to fully mitigate these risks, as such
NZKS continues to investigate how risks might be reduced. Mitigations include:
• Backup Broodstock held in Tentburn.
• A frozen sperm bank held at a third-party location to back up male broodstock.
• A multiple spawning strategy that spreads the risk and reduces the opportunity of total loss.
• Investments in hydrology mapping at hatcheries to inform opportunities to reduce flood and
drought risk.
• Insurance policies including material damage and business interruption insurance.
Future investments (including the purchase of a new processing site in Blenheim) will provide
further opportunities to mitigate some of these risks.
Market accessNZKS products are sold to a number of export markets, and there is a risk that regulatory
change in specific markets will impair NZKS access to these markets, significantly impacting
sales levels and profitability. This may be a closure of the market, or the introduction of new rules
that impact NZKS products and may affect the time spent at entry ports for clearance. NZKS
international customers expect continuity of supply, which requires consistent access to key
markets in a timely manner and without extensive compliance obligations. Additionally, as NZKS
products are highly perishable, they also require swift clearance at the port, and extensive or
changing compliance requirements may hinder clearance timeframes.
NZKS' food safety team works closely with relevant government departments to ensure compliance prior to
its products leaving New Zealand, which is expected to limit the likelihood of access to relevant markets being
restricted. The food safety team also works with industry bodies and government departments to forward
plan for any longer-term compliance issues that may arise in advance of activity in-market. In the past, NZKS
has moved products between markets in response to changes in pricing demand. Similarly, given the global
demand for King salmon, NZKS expects that if one market is closed or subject to more onerous restrictions,
NZKS will be able to find alternative channels to sell its products, however, the margins may be lower in the
short term.
Feed costs and
quality
Feed is one of NZKS' largest costs. Sourcing good quality feed is crucial for NZKS as it is one
of the key contributors to fish performance and fish health. An increase in the cost of feed
or a decrease in the quality of feed will have a significant impact on NZKS operations and
profitability. Further, given the rarity of King salmon globally, research and development to
design feed specifically for King salmon is not extensively undertaken by global feed companies
and this can create risks when changing dietary components, including the risk of increased
fish mortality.
NZKS has an ability to pass price increases onto customers, however, it is unclear whether NZKS will be able to
fully pass on the increased cost of raw materials to customers. Risks around feed price and quality are partially
mitigated by NZKS endeavoring to source feed from multiple suppliers (although currently both are based in
Australia).
To further understand supplier performance, NZKS benchmarks feed to measure fish performance on various
diets and has invested in a trial facility that will enable feed-based trials to improve diet performance and
benchmarking.
69
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
AreaDescription of RiskKey Strategies to Mitigate
Food safetyNZKS produces ready-to-eat products which are consumed in a raw state, such as cold smoked
salmon, sushi and sashimi. There is a risk NZKS products could contain harmful bacteria or other
organisms, such as Listeria monocytogenes, which is unique in that it is a foodborne pathogen
which can grow below 4°C. Food safety incidents could result in reputational damage, regulatory
consequences (including fines, penalties, loss of licenses or temporary shutdowns of facilities),
and product recalls. The potential magnitude of any food safety incident could be severe.
In addition, new laws could also be passed which impose further food safety requirements
on NZKS, which may require significant capital expenditure to comply with, reducing NZKS
operational performance.
NZKS takes rigorous steps to minimise the risk of contamination from any biological, chemical and
physical hazards. These are managed HACCP (Hazard Analysis Critical Control Point /s) along with support
programmes and systems.
Biological hazards are managed through process controls including rigorous testing of input and output
materials. Additionally, where required, the introduction of processing aids and safe shelf- life limits to reduce
growth of pathogens such as Listeria monocytogenes.
Chemical hazards are managed through rigorous testing of inputs including fish feed and outputs including
flesh and finished products.
Physical hazards are managed through the introduction of metal detection and/or supported by visual
inspection of inputs including packaging and outputs including fish flesh and finished products.
Social licenseNZKS has a number of external relationships and stakeholders that can influence our social
license, as its business operates in ‘public’ water space and in areas with high cultural
significance. It is crucial that NZKS maintains positive relationships with iwi and external
stakeholders, to support positive outcomes for future consent applications to continue to
operate its farms. Failure to renew some or all of these consents will have a material impact on
NZKS operations, resulting in a decline in harvest and therefore cash flow. It will also influence
our ability to expand into future locations.
NZKS undertakes a range of stakeholder engagement initiatives. These include, but are not limited to,
environmental management and active relationship and stakeholder management (i.e. with iwi, Aquaculture
New Zealand, the local council). Our communications are delivered strategically across all groups.
The Best Aquaculture Practices (BAP) certification is the main third-party accreditation selected to
demonstrate independent assessment of the business’s operational practices based on third party standards.
NZKS ensures its compliance with BAP by engaging in regular external audits across operations, people &
culture and key suppliers to achieve four stars, the highest rating.
Loss of critical
systems
NZKS relies on IT systems to carry out critical business processes across all areas of the
organisation. These include, but are not limited to, paying employees and suppliers, invoicing,
tracking inventory movements, sea farm management, processing customer orders, and
operating the call centre.
Disruption to IT systems and/or loss of data could arise from various events such as cyber-
attacks, network outages, power failures, or physical damage to hardware. Such disruptions may
halt essential processes, resulting in significant operational downtime, financial impacts, and
potential reputational damage.
NZKS mitigates the risk of losing critical IT systems and data by maintaining resilient infrastructure with
backups and disaster recovery capabilities, implementing strong cybersecurity controls and regular patching,
and continuously monitoring systems with a clear incident.
These measures are reinforced by the IT team working closely with specialist external partners, reliable
third-party service management, and ongoing staff training to reduce human error and strength awareness.
Together, these strategies minimise the likelihood of disruption and ensure rapid recovery if an incident occurs.
70
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
The Board has delegated responsibility to the Audit, Finance, Risk and Project
Development Committee to establish and regularly review the Company’s risk
management framework.
Business risks are a standing agenda item of the Audit, Finance, Risk and Project
Development Committee. Committee specific risks are also considered by the Board
committees with reports provided by senior Management. As part of this framework,
the Audit, Finance, Risk and Project Development Committee is tasked with identifying
situations and circumstances in which the Company may be materially at risk and
initiating appropriate action through the Board or CEO. Risk is overseen by the CEO
and supports a comprehensive approach to the management of those risks identified
as material to the Company’s operations.
The CEO and CFO have provided the Board, through the Audit, Finance, Risk and
Project Development Committee, with assurances that in their opinion, financial
records have been properly maintained, that the financial statements comply
with those accounting standards under which the Company must report and that
the statements give a true and fair view of the Company’s financial position and
performance. These representations are given on the basis that a sound system of
internal controls and risk management is operating effectively in all material respects
in relation to financial reporting.
In managing the Company’s business risks, the Board approves and monitors policy
and procedures in areas such as treasury management, financial performance,
taxation and delegated authorities.
Insurance
The Company has insurance policies in place covering most areas where risk to its
assets and business can be insured at a reasonable cost.
Recommendation 6.2
An issuer should disclose how it manages its health and safety risks and should report on
its health and safety risks, performance and management.
Health and Safety
The Board and Management are committed to promoting a safe and healthy working
environment for everyone working in, or interacting with, the Company. The Company
strives for continuous improvement that takes us beyond compliance in health, safety
and wellness. This includes the reviewing of our health and safety policy statement as
well as the systems and processes that support our safety objectives.
The Company’s People, Performance and Safety Committee Charter creates a shared
responsibility for all our team members and contractors to, so far as reasonably
practicable take all steps in providing a working environment that promotes health and
wellbeing. Effective controls based on industry knowledge and best practice guidelines
inform and support our risk management across all areas of the business.
7. Principle 7 — Auditors
The Board should ensure the quality and independence of the external audit process.
Recommendation 7.1
The Board should establish a framework for the issuer’s relationship with its external
auditors. This should include procedures:
a. for sustaining communication with the issuer’s external auditors;
71New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
The role of the external auditor is to audit the financial statements of the Company
in accordance with applicable auditing standards in New Zealand and to report on its
findings to the Board and shareholders of the Company.
The External Auditor Independence Policy is available in the Corporate Governance Code
which is available on the Company’s website.
PricewaterhouseCoopers (PwC) is the Company’s current external auditor. Adri Smit is
the current audit engagement partner, who completed her second audit of NZKS for the
financial period ending 30 September 2025. Fees paid to PwC are included in Note 30 of
the notes to the financial statements.
Both the Company’s Audit, Finance, Risk and Project Development Committee
Charter, and the External Auditor Independence Policy require the external auditor to
be independent, recognising the importance of facilitating frank dialogue between
the Audit, Finance, Risk and Project Development Committee, the auditor and
Management. The External Auditor Independence Policy requires that the audit partner
be rotated after a maximum of five years.
The Audit, Finance, Risk and Project Development Committee Charter requires the
Committee to facilitate the continuing independence of the external auditor by
assessing the external auditor’s independence, qualifications, overseeing and monitoring
their performance. This involves monitoring all aspects of the external audit, including
the appointment of the auditor, the nature and scope of its audit and reviewing the
auditor’s service delivery plan.
The external auditor is invited to attend the Annual Shareholders’ Meeting and is
requested to be available to answer questions about the audit process and the
independence of the auditor.
b. to ensure that the ability of the external auditors to carry out their statutory audit
role is not role is not impaired, or could reasonably be perceived to be impaired;
c. to address what, if any, services (whether by type or level) other than their
statutory audit roles may be provided by the auditors to the issuer; and
d. to provide for the monitoring and approval by the issuer’s Audit Committee of any
service provided by the external auditors to the issuer other than in their statutory
audit role.
Recommendation 7.2
The external auditor should attend the issuer’s Annual Shareholders’ Meeting to answer
questions from shareholders in relation to the audit.
External Auditor
The Company’s Audit, Finance, Risk and Project Development Committee is responsible
for oversight of the Company’s external audit arrangements to safeguard the integrity
of financial reporting. The Company maintains an External Auditor Independence Policy
to ensure that audit independence is maintained, both in fact and appearance.
The policy covers the following areas:
• Appointment of the external auditor.
• Provision of other assurance services by the external auditor.
• Pre-approval process for the provision of other assurance services.
• External auditor lead and engagement partner rotation.
• Hiring of employees from the external auditor.
• Relationships between the external auditor and the Company.
• Reporting on fees and non-audit work.
72New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Recommendation 7.3
Internal audit functions should be disclosed.
Internal Audit
The Company does not have an internal audit function. However, the Company does
have a quality and compliance team dedicated to food hygiene (in relation to the
processing of harvested fish through to finished goods that are dispatched to the
end customer) and a Health and Safety Team (dedicated to providing a safe working
environment for the Company’s operations). The objective of the food quality and
compliance team is to enhance and protect the organisational value of the Company by
providing risk-based and objective assurance. The management of both Food Safety and
Health & Safety is overseen by regular internal safety audits throughout the Company’s
operations. Governance of these areas is provided by the Board and Board Committees.
In the absence of a dedicated internal audit function, the Company looks to utilise
external expertise for assessing the effectiveness of its risk management and internal
processes.
Independent Professional Advice
With the approval of the Audit, Finance, Risk and Development Committee, Directors
are entitled to seek independent professional advice on any issue related to the
fulfillment of his or her duties, at the Company’s expense. During the period ending 30
September 2025, the Directors sought independent professional advice from:
• an external advisor to assist with expert knowledge for the Fish Farming Committee.
8. Principle 8 — Shareholder Rights and Relations
The Board should respect the rights of shareholders and foster constructive
relationships with shareholders that encourage them to engage with the issuer.
Recommendation 8.1
An issuer should have a website where investors and interested stakeholders can
access financial and operational information and key corporate governance
information about the issuer.
Shareholder Relations
The Company is committed to maintaining a full and open dialogue with its
shareholders and other stakeholders. Annual reports, links to the NZX/ASX,
governance policies and charters, and a variety of corporate information are posted
on the Company’s website.
The Company’s preference is for electronic communications in the interests of
sustainability and efficiency; however, a paper copy of each Annual Report can be
provided to shareholders on request.
The Company’s website includes a range of information relevant to shareholders
and others concerning the operation of the Company, including information about
the sites we operate, certifications, our brands, and the corporate governance
policies of the Company.
73New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Recommendation 8.2
An issuer should allow investors the ability to easily communicate with the issuer,
including by designing its shareholder meeting arrangements to encourage
shareholder participation, and by providing shareholders the option to receive
communications from the issuer electronically.
Electronic Communications and Shareholder Meetings
Shareholders have the option of receiving their communications electronically. This is
the Company’s preferred method of communication.
Contact details for the Company’s head office are available on the website.
Shareholder meetings will be held at a time and location to encourage participation
in-person by shareholders. Annual meetings are currently held in the Nelson /
Marlborough region, reflecting the head office and production locations for the
Company.
Recommendation 8.3
Quoted equity security holders should have the right to vote on major decisions which
may change the nature of the issuer in which they are invested.
Major Decisions
Directors’ commitment to timely and balanced disclosure is set out in its Shareholder
Communications and Market Disclosure Policy and includes advising shareholders
on any major decisions. Where voting on a matter is required, the Board encourages
investors to attend the meeting or, where they are unable to do so, to cast a postal or
online vote, or appoint a proxy to exercise their vote on their behalf. Shareholders may
raise matters for discussion at the Annual Shareholders’ Meeting either in person, or
by emailing the Company with a question to be asked.
Recommendation 8.4
If seeking additional equity capital, issuers of quoted equity securities should offer
further equity securities to existing equity security holders of the same class on a pro
rata basis, and on no less favourable terms, before further equity securities are offered
to other investors.
Equity Raise
The Board is responsible for considering the interests of all existing equity holders
when assessing their capital raising options.
Recommendation 8.5
The Board should ensure that the notices of annual or special meetings of quoted
equity security holders is posted on the issuer’s website as soon as possible, and at
least 20 working days prior to the meeting.
Notice of Meeting
The Company’s Notice of Meeting will be available at least 20 working days prior to
the meeting on the NZX/ASX with a link to stock exchange announcements provided
in the Investors section of the Company’s website.
74New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Director Disclosures
The following persons were Directors of New Zealand King Salmon Investments Limited
and its subsidiaries during the period to 30 September 2025:
Directors
Mark
Dewdney
Jack
Porus
Chiong Yong
Tiong
Paul
Munro
James V.
Kilmer
Justin
Reynolds
Catriona
Macleod
Carol
Chen
Victoria Taylor
Carl
Carrington
Graeme
Tregidga
New Zealand King Salmon Investments Limited
The New Zealand King Salmon Co. Limited
New Zealand King Salmon Exports Limited
New Zealand King Salmon USA Incorporated
The New Zealand King Salmon Pty Limited
NZKS Custodian Limited
King Salmon Limited
MacCure Seafoods Limited
Omega Innovations Limited
Ōra King Limited
Regal Salmon Limited
Southern Ocean Salmon Limited
Southern Ocean Seafoods Limited
75New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Interests Register
The following entries were made in the interests register of the Company during the
period ended 30 September 2025:
Share Dealings by Directors
Dealings by Directors and key Senior Managers during the period ended 30 September
2025, as entered in the Interest Register of the Company are as follows:
Name of
Director / Senior
Executive
No. of Shares
Nature of
Interest
Acquisition /
Disposal
ConsiderationDate
Jack Porus
1
15,000IndirectAcquisition$0.197 Sep 2023
1
On 7 September 2023, Harbour View Investments Limited acquired an aggregate of 15,000 shares in NZK by way of two
on-market trades. Fether-Bed Auckland Limited holds all of the shares in Harbour View Investments Limited as sole trustee
of the Harbour View Trust. Jack Porus is not a trustee or beneficiary of the Harbour View Trust. However, Jack Porus, jointly
with Janet Frost, has the power of appointment of trustees of that Trust. This acquisition was retrospectively announced
on 10 April 2025 and amended 24 November 2025.
DirectorName of InterestNature of Interest
Mark Dewdney (Chair)Seeka LimitedIndependent Director / Chair
Paul MunroAPI Council (Payments NZ Ltd)Independent Member
Catriona MacleodThe Nature Conservancy Advisor
Victoria TaylorNibblish LimitedDirector
Helius Group LimitedChief Executive Officer
Entries made in the interests register for the period
ended 30 September 2025
Relevant Interests
The table below records the ordinary shares in which Directors had a relevant interest as
at 30 September 2025.
Name of Director
1
Number of Ordinary
Shares — Beneficial
Number of Ordinary
Shares — Non-Beneficial
Jack Porus
1
6,756,38118,480
Catriona Macleod 83,190 -
Victoria Taylor 39,253 -
1
On 7 September 2023, Harbour View Investments Limited acquired an aggregate of 15,000 shares in NZK by way of two
on-market trades. Fether-Bed Auckland Limited holds all of the shares in Harbour View Investments Limited as sole trustee
of the Harbour View Trust. Jack Porus is not a trustee or beneficiary of the Harbour View Trust. However, Jack Porus, jointly
with Janet Frost, has the power of appointment of trustees of that Trust. This acquisition was retrospectively announced
on 10 April 2025 and amended 24 November 2025.
76New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Shareholder Information
As at 30 September 2025, there were 538,182,273 ordinary shares on issue in the
Company, each conferring on the registered holder the right to vote on any resolution at
a meeting of shareholders, held as follows:
Size of HoldingNumber of ShareholdersNumber of Shares held%
1 - 49919541,1930.01%
500 - 99911175,4450.01%
1,000 - 1,999219288,1220.05%
2,000 - 4,9994671,481,8820.28%
5,000 - 9,9993872,681,8000.50%
10,000 - 49,99982018,818,6833.50%
50,000 - 99,99921314,499,1022.69%
100,000 - 499,99918237,612,3276.99%
500,000 - 999,9992113,049,3902.42%
1,000,000 Over39449,634,32983.55%
Total2,654538,182,273100.00%
Use of Company Information by Directors
No notices were received from Directors pursuant to section 145 of the Companies Act
1993 to use Company information, received in their capacity as Directors, which would
otherwise not have been available to them.
Directors Liability
As permitted by the Company’s Constitution and in accordance with Section 162 of the
Companies Act 1993, the Company has indemnified all Directors and arranged Directors’
and Officers’ Liability Insurance which ensures that, to the extent permitted by law,
Directors will incur no monetary loss as a result of actions undertaken as Directors.
Certain actions are specifically excluded, for example, the incurring of penalties and
fines, which may be imposed in respect of breaches of the law.
77New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
20 Largest Shareholders
Set out below are details of the 20 largest shareholders of the Company as at 7 October 2025:
ShareholderShares% of Shares
Oregon Group Limited212,851,82539.55
China Resources Enterprise Limited53,125,9349.87
Hsbc Nominees A/C NZ Superannuation Fund Nominees Limited — NZCSD47,862,7188.89
Accident Compensation Corporation — NZCSD18,352,4583.41
New Zealand Depository Nominee Limited13,898,4012.58
Masfen Securities Limited13,150,0002.44
Takutai Limited9,907,8271.84
Jack Lee Porus & Robert Narev6,756,3811.26
NZX WT Nominees Limited6,327,4031.18
FNZ Custodians Limited5,524,1811.03
Hsu-Cheng Yang5,500,0001.02
John William Dudley Ryder5,322,9780.99
JBWere (NZ) Nominees Limited4,510,9910.84
Custodial Services Limited3,770,9080.70
Grantley Bruce Rosewarne & Bianca Jade Rosewarne3,593,4360.67
Trew Pty Limited3,144,7150.58
NZKS Custodian Limited2,855,2460.53
Grant Ambury Alexander & Eileen Gayel Alexander2,532,9710.47
Amin Sudartio2,472,3420.46
Peter Plowman2,333,8080.43
78
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Substantial Product Holders
Set out below are details of the substantial product holders of the Company as advised
by notice to the Company, as at 30 September 2025. The number of shares shown
below is as advised in the most recent substantial product holder notices given to the
Company and may not be their holding as at 30 September 2025.
ShareholderNumber of SharesClass of Share
Oregon Group Ltd212,851,825Ordinary
China Resources Enterprise, Ltd53,125,934Ordinary
New Zealand Superannuation Fund Nominees Ltd47,812,718Ordinary
Annual Shareholders’ Meeting
The Company’s Annual Shareholders’ Meeting for the period ended 30 September 2025
will be a physical meeting, with a link made available so that those not available to
attend in person can watch the meeting online (however, voting will not be available
online during this meeting). The meeting will be held on 18 February 2026. Shareholders
will be given an opportunity at the meeting to ask questions and comment on relevant
matters. The Notice of Meeting will be sent to shareholders at least 20 working days in
advance of the meeting.
Exercise of NZX Disciplinary Powers
NZX Limited did not exercise any of its powers under Listing Rule 5.4.2 in relation to
the Company during the period to 30 September 2025.
Donations
Donations made by the Group during the period to 30 September 2025 totalled
$5,512.66 (31 January 2025: $13,313.92). No donations were made to political parties.
79New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
Corporate Directory
Board of Directors
Mark Dewdney
Independent Non-Executive Chair
Jack Lee Porus
Non-Executive Director
Chiong Yong Tiong
Non-Executive Director
Catriona Macleod
Independent Non-Executive Director
Yuen Ping Carol Chen
Non-Executive Director
Victoria Taylor
Independent Non-Executive Director
Paul Munro
Independent Non-Executive Director
Committee Members
Audit, Finance, Risk
and Project Development
Committee
Paul Munro (Chair)
Chiong Yong Tiong
Mark Dewdney
People, Performance and
Safety Committee
Victoria Taylor (Chair)
Jack Porus
Mark Dewdney
Catriona Macleod
Fish Farming Committee
Jack Porus (Chair)
Catriona Macleod
Mark Dewdney
Bankers
The Bank of New Zealand
Deloitte Centre
Level 6, 80 Queen Street
Auckland, New Zealand
Kiwibank
Level 9, 20 Customhouse Quay
Wellington, New Zealand
Auditor
PricewaterhouseCoopers
(PwC)
Level 4, 60 Cashel Street
Christchurch, New Zealand
Lawyers
Chapman Tripp
Level 34, 15 Customs Street West
Auckland, New Zealand
Gascoigne Wicks
79 High Street
Blenheim, New Zealand
Duncan Cotterill
197 Bridge Street
Nelson, New Zealand
Share Registry
Computershare Investor Services
Limited
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622, New Zealand
+64 9 488 8777
enquiry@computershare.co.nz
Computershare Investor Services
Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford VIC 3067, Australia
+61 3 9415 4083
enquiry@computershare.co.nz
Tavendale and Partners
94 Nile Street
Nelson, New Zealand
New Zealand
King Salmon
Ticker: NZK
Listed on the NZX Main Board and as
a Foreign Exempt Listing on the ASX
NZ Company number: 2161790
Registered Office
17 Bullen Street, Tāhunanui
Nelson 7011, New Zealand
Postal Address
PO Box 1180 Nelson 7040
New Zealand
Telephone
+64 3 548 5714
Website
www.kingsalmon.co.nz
Investor Relations
investor@kingsalmon.co.nz
80New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Leadership & Corporate Governance
FOR THE EIGHT MONTHS
ENDED 30 SEPTEMBER 2025
Financial
Statements
84New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Contents
Consolidated Statement of Comprehensive Income 86
Consolidated Statement of Financial Position 87
Consolidated Statement of Changes in Equity 88
Consolidated Statement of Cash Flows 89
Notes to the Consolidated Financial Statements 90
1. Corporate Information 90
2. Basis of Preparation 90
3. Summary of Material Accounting Policy Information 92
4. Changes in Accounting Policies and Disclosures 100
5. Other Income 101
6. Expenses 101
7. Finance Income and Costs 102
8. Income Tax 102
9. Components of Other Comprehensive Income 104
10. Earnings Per Share 104
11. Cash and Cash Equivalents 105
12. Trade and Other Receivables 105
13. Inventories 105
14. Biological Assets 106
15. Property, Plant and Equipment 109
16. Intangibles 110
17. Right-of-use Assets 110
18. Lease Liabilities 111
19. Interest Bearing Loans and Borrowings 111
20. Trade and Other Payables 111
21. Employee Liabilities 112
22. Government Grants 112
23. Commitments and Contingencies 113
24. Risk Management 113
25. Fair Value of Financial Instruments 117
26. Capital Management 118
27. Capital and Reserves 118
28. Events After Balance Date 119
29. Related Party Disclosures 120
30. Auditor’s Remuneration 121
31. Cash Flow Information 121
32. Revenue from Contracts with Customers 122
33. Segment Information 123
Independent Auditor’s Report 124
Glossary 129
85New Zealand King SalmonAnnual Report FY25 (Sept) — Financial StatementsContents
Consolidated Statement of Comprehensive Income
For the eight months ended 30 September 2025
Sep 2025Jan 2025
8 months12 months
Note$000$000
Revenue from contracts with customers32117,719 210,993
Cost of goods sold6,13(117,570) (193,039)
Fair value gain on biological transformation1410,088 27,411
Gross profit10,237 45,365
Other income5981 5,475
Selling and distribution expenses6(10,717) (16,814)
Corporate expenses6(8,642) (13,796)
Other expenses6(1,458) (1,983)
(Loss)/profit before interest and tax(9,599)18,247
Finance income71,057 1,466
Finance costs7(442) (619)
(Loss)/profit before tax(8,984) 19,094
Income tax credit /(expense)82,657 (5,735)
Net (loss)/profit after tax(6,327) 13,359
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Sep 2025Jan 2025
8 months12 months
Note$000$000
Other comprehensive income
Other comprehensive income that may be reclassified to
profit or loss in subsequent periods:
Exchange differences on translation of foreign operations9(17) 787
Gain/(loss) on cash flow hedges97,659 (9,739)
Income tax effect on gain/(loss) on cash flow hedges9(2,144) 2,726
Hedging gain/(loss) reclassified to profit & loss91,862 3,536
Income tax effect on reclassifications to profit & loss9(526) (957)
Release of early closed out foreign exchange contracts9(405) (4,330)
Deferred tax on early closed out foreign exchange contracts9113 1,214
Net other comprehensive income /(loss)6,542(6,763)
Total comprehensive income2156,596
Earnings per share
Basic earnings per share10 $(0.01) $0.02
Diluted earnings per share10 $(0.01) $0.02
86
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Consolidated Statement of Financial Position
As at 30 September 2025
Director — Mark Dewdney
27 November 2025
Director — Paul Munro
27 November 2025
Sep 2025Jan 2025
LiabilitiesNote$000$000
Current liabilities
Trade and other payables2015,444 13,456
Employee liabilities214,153 4,838
Borrowings192,000 4,505
Lease liabilities181,725 1,834
Other financial liabilities29360 340
Derivative financial liabilities252,431 7,153
Taxation payable4424,426
Total current liabilities26,555 36,552
Non-current liabilities
Employee liabilities21282 326
Lease liabilities187,827 8,647
Deferred income222,777 -
Deferred tax liabilities86,0606,134
Derivative financial liabilities25430 3,506
Total non-current liabilities17,376 18,613
Total liabilities43,931 55,165
Net assets197,338 197,031
Equity
Share capital27180,143 180,143
Reserves271,371 (5,263)
Retained earnings2715,824 22,151
Total equity197,338 197,031
Sep 2025Jan 2025
AssetsNote$000$000
Current assets
Cash and cash equivalents1145,629 49,738
Trade and other receivables1214,92717,262
Other current financial assets253,000 3,000
Taxation receivable269-
Inventories1321,629 27,190
Biological assets1480,306 88,145
Derivative financial assets251,817 1,016
Total current assets167,577 186,351
Non-current assets
Property, plant and equipment1560,589 52,427
Derivative financial assets251,479 540
Intangible assets162,541 2,775
Right-of-use assets179,083 10,103
Total non-current assets73,692 65,845
Total assets241,269252,196
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
For and on behalf of the Board, who authorised the issue of these financial statements on 27 November 2025.
87New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Consolidated Statement of Changes in Equity
For the eight months ended 30 September 2025
Share
Capital
Foreign
Currency
Translation
Reserve
Hedge
Reserve
Share Based
Payment
Reserve
Retained
Earnings
Total
Equity
Note$000$000$000$000$000$000
Balance as at 1 February 2024180,143 (632) 1,375 617 8,792 190,295
Profit for the year- - - - 13,359 13,359
Other comprehensive income/(loss)9- 787 (7,550) - - (6,763)
Total comprehensive income/(loss) for the year- 787 (7,550) - 13,359 6,596
Share based payment expense- - - 140 - 140
Balance as at 31 January 2025180,143 155 (6,175) 757 22,151 197,031
Balance as at 1 February 2025180,143 155 (6,175) 757 22,151 197,031
Loss for the period- - - - (6,327) (6,327)
Other comprehensive income/(loss)9- (17) 6,559 - - 6,542
Total comprehensive income /(loss) for the period- (17) 6,559 - (6,327) 215
Share based payment expense- - - 92 - 92
Balance as at 30 September 2025180,143 138 384 849 15,824 197,338
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
88New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Consolidated Statement of Cash Flows
For the eight months ended 30 September 2025
Sep 2025Jan 2025
8 months12 months
Note$000$000
Operating activities
Receipts from customers121,377 213,099
Payments to suppliers(77,557) (130,289)
Payments to employees(29,811) (44,701)
Interest received1,042 1,421
Interest paid(416) (578)
Government grants received21986
Income tax paid(4,224) (580)
Net cash flows from operating activities3110,63038,458
Investing activities
Placement /(Maturity) of short term deposits- 3,000
Proceeds from sale of property, plant and equipment29 17
Purchase of property, plant and equipment(12,864) (10,743)
Government grants received related to property, plant and equipment1,994-
Net cash flow from/(used in) investing activities(10,841) (7,726)
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Sep 2025Jan 2025
8 months12 months
Note$000$000
Financing activities
Repayment of borrowings(2,505) (4,417)
Proceeds from borrowings- 3,505
Payment of lease liabilities(1,268) (1,580)
Net cash flows from/(used in) financing activities(3,773) (2,492)
Net increase/(decrease) in cash and cash equivalents(3,984) 28,240
Net foreign exchange difference(125) 590
Cash and cash equivalents at beginning of the period1149,738 20,908
Cash and cash equivalents at period end1145,629 49,738
89
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Notes to the Consolidated Financial Statements
For the eight months ended 30 September 2025
1. Corporate Information
The consolidated financial statements of New Zealand King Salmon Investments Limited
(the Company) and its subsidiaries (together the Group) for the 8 month period ended
30 September 2025 were authorised by the directors on 27 November 2025. The Group
changed its balance date to 30 September following a Board resolution.
New Zealand King Salmon Investments Limited is a profit-oriented company
incorporated and domiciled in New Zealand, registered under the Companies Act 1993.
The Company is dual listed with its primary listing of ordinary shares quoted in New
Zealand on the NZX Main Board (“NZX”), and a secondary listing in Australia as a
foreign Exempt Entity on the Australian securities exchange (“ASX”). The Company
is an FMC reporting entity under the Financial Markets Conduct Act 2013.
The Group is principally engaged in the farming, processing, sale and distribution of
premium salmon products.
2. Basis of Preparation
a. Statement of compliance
The consolidated financial statements of the Group comply with New Zealand
Equivalents to International Financial Reporting Standards (NZ IFRS) and other
applicable Financial Reporting Standards, as applicable for profit oriented entities.
The consolidated financial statements of the Group comply with International Financial
Reporting Standards (IFRS Accounting Standards).
The financial statements have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP) and the requirements of the Financial
Markets Conduct Act 2013. For the purposes of complying with NZ GAAP the Group is a
for-profit entity.
Following all necessary approvals, including the Board resolution, to approve the change
in balance date to 30 September, these consolidated financial statements reflect an 8
month period to 30 September 2025. The comparative information in these consolidated
financial statements reflect a 12 month period to 31 January 2025. Accordingly, the
amounts presented may not be directly comparable. Certain comparative figures have
been reclassified during the period for consistency with the current period presentation.
These classifications had no effect on the reported results of operations.
b. Basis of measurement
The financial statements have been prepared on a historical cost basis except for
biological assets and certain financial instruments which have been measured at fair
value. The carrying values of recognised assets and liabilities that are designated as
hedged items in hedging instruments are adjusted to recognise changes in the fair
values attributable to the risks that are being hedged in effective hedge relationships.
The consolidated financial statements are presented in New Zealand dollars and all
values are rounded to the nearest thousand ($000), except when otherwise indicated.
c. Significant accounting judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements requires management
to make judgements, estimates and assumptions that affect the reported outcomes
of revenues, expenses, assets, liabilities and the accompanying disclosures. The Group
based its assumptions and estimates on parameters available when the consolidated
financial statements were prepared. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
90New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Specific areas requiring significant estimates and judgements include:
Valuation of biological assets
The Group measures biological assets at fair value less cost to sell, in accordance
with NZ IAS 41. The fair value is measured using a discounted cash flow model and is
categorised at Level 3 in the fair value hierarchy in NZ IFRS 13, as the inputs are mostly
unobservable. In line with NZ IFRS 13, the highest and best use of the biological assets
is applied for the valuation. The model relies on various assumptions and information
available at balance date. The income or loss that is ultimately recognised at time of
sale may be significantly different from that implied by the fair value adjustment at the
end of a reporting period. The fair value uplift from accumulated costs to date has no
cash impact in the reporting period. Further details of the key assumptions and inputs
to the valuation and sensitivity to change in these are disclosed in Note 14.
Inventory (finished goods and work in progress) obsolescence
Inventories are stated at the lower of cost or net realisable value, and the Group uses
judgment and estimates to determine the net realisable value of inventory at the end of
each reporting period.
The Group estimates the net realisable value of inventory for obsolescence and
unmarketable items at the end of reporting period and then writes down the cost of
inventories to net realisable value. The net realisable value of the inventory is determined
based on assumptions of future demand and pricing and estimates over the remaining
shelf life of the inventory.
Valuation of financial derivatives
The Group recognises financial derivatives at fair value according to the principles of
NZ IFRS 13 Fair Value Measurement. The value is calculated by a third party expert using
an industry standard model. Inputs to the model are obtained externally by the service
provider and the derivative counterparty. Further details of the valuation are included in
Note 25.
d. Foreign currency translation
Functional and presentation currency
The Group’s consolidated financial statements are presented in New Zealand dollars,
which is also the parent company’s functional currency. The Australian subsidiary’s
functional currency is Australian dollars which is translated into the presentation
currency in these consolidated financial statements. The USA subsidiary’s functional
currency is United States dollars which is translated into the presentation currency in
these consolidated financial statements.
Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency and
then translated by applying the exchange rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the
rate of exchange at balance date.
Differences arising on settlement or translation of monetary items are recognised in
profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rate as at the date of the initial transaction. Non-
monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined.
91New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
3. Summary of Material Accounting Policy Information
a. Basis of consolidation
The financial statements comprise the financial statements of New Zealand King
Salmon Investments Limited and its subsidiaries (per Note 29). Subsidiaries are all those
entities over which the Company has control.
The financial statements of the subsidiaries are prepared for the same reporting period
as the Parent company using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and
transactions, income and expenses and profit and losses resulting from intra-group
transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by the
Group and cease to be consolidated from the date on which control is transferred out
of the Group.
b. Financial instruments
Financial assets are classified, at initial recognition, as subsequently measured at
amortised cost, fair value through other comprehensive income (OCI), and fair
value through profit or loss. The classification of financial assets depends on the
business model within which the financial asset is held and its contractual cash
flow characteristics. In order for a financial asset to be classified and measured at
amortised cost or fair value through OCI, it needs to give rise to cash flows that are
‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding.
This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair
value through profit or loss, irrespective of the business model. Subsequently the Group
applies the following accounting policies for financial instruments:
Cash and cash equivalents
Cash and cash equivalents in the consolidated statement of financial position comprise
cash at bank and call deposits. For the purpose of the cash flows, cash and cash
equivalents consist of cash and short-term deposits net of outstanding bank overdrafts.
Trade and other receivables
Short term trade and other receivables are recognised when an amount of consideration
that is unconditional, is due from the customer (i.e. only the passage of time is required
before the payment of the consideration is due). Gains and losses are recognised in the
profit or loss when the receivables are written off or impaired.
For trade receivables and contract assets, the Group applies a simplified approach in
calculating an allowance for expected credit loss (ECL). Therefore, the Group does not
track changes in credit risk, but instead recognises a loss allowance based on lifetime
ECL’s at each reporting date. The Group has established a provision matrix that is based
on its historical credit loss experience, adjusted for forward-looking factors specific to
the debtors and the economic environment.
Trade and other payables
Trade and other payables are carried at amortised cost and, due to their short term
nature, are not discounted. They represent liabilities for goods and services provided to
the Group prior to the end of the financial reporting period that are unpaid, and arise
when the Group becomes obliged to make future payments in respect of the purchase
of these goods and services. The amounts are unsecured and are usually paid within
30-90 days of recognition.
92New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Interest bearing borrowings
After initial recognition interest bearing borrowings are subsequently measured at
amortised cost using the effective interest method. Fees paid on establishment of loan
facilities that are yield related are included as part of the carrying amount. Borrowings
are classified as current liabilities unless the Group has the right to defer settlement
of the liability for at least 12 months after the balance date. Borrowing costs are
generally recognised as an expense when incurred, with the exception of borrowing
costs associated with a qualifying asset which are capitalised as part of the cost of
that asset.
Derivative financial instruments and hedging
The Group uses derivative financial instruments including forward currency contracts
and options to hedge risks associated with interest rate and foreign currency
fluctuations. Such derivative financial instruments are initially recognised at fair value
on the date on which a derivative contract is entered into and are subsequently re-
measured to fair value at balance date. Derivatives are carried as assets when their
fair value is positive and as liabilities when their fair value is negative.
The fair values of forward currency contracts and options are calculated by reference
to current forward exchange rates for contracts with similar maturity profiles.
The Group designates its derivative financial instruments as hedges of a particular risk
associated with a recognised asset or liability or a highly probable commitment that
could affect profit or loss (cash flow hedges). The effective portion of the gain or loss
on the hedging instrument is recognised directly in other comprehensive income in
the cash flow hedge reserve, while the ineffective portion is recognised immediately
in profit or loss. Derivatives that are designated as hedges will be classified as non-
current if they have maturities of greater than 12 months after balance date.
Some components of hedge accounted derivatives are excluded from the designated
risk. Cash flow hedges include only the intrinsic value of forward currency contracts and
options. Time value on options is excluded from the hedge designation and is marked
to market through other comprehensive income and accumulated within a separate
component of equity (‘the costs of hedging reserve’ within ‘hedge reserves’) until such
time as the related hedge accounted cash flows affect profit or loss. At this stage the
cumulative amount is reclassified to profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group
of similar financial assets) is primarily derecognised (i.e. removed from the Group’s
consolidated statement of financial position) when:
• The rights to receive cash flows from the asset have expired; or
• The Group has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay
to a third party under a “pass-through” arrangement; and either (a) the Group has
transferred substantially all the risks and rewards of the asset, or (b) the Group has
neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset. When the Group has transferred its rights to
receive cash flows from an asset or has entered into a pass-through arrangement, it
evaluates if, and to what extent, it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards
of the asset, nor transferred control of the asset, the Group continues to recognise
the transferred asset to the extent of its continuing involvement. In that case, the
Group also recognises an associated liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights and obligations that the
93New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Group has retained. Continuing involvement that takes the form of a guarantee over
the transferred asset is measured at the lower of the original carrying amount of the
asset and the maximum amount of consideration that the Group could be required
to repay.
c. Inventories
Inventories including raw materials, work in progress and finished goods are valued at
the lower of cost or net realisable value. Costs incurred in bringing each product to its
present location and condition are accounted for as follows:
Raw materials
The cost of fish is measured at fair value less cost to sell at harvest date. The cost of
feed and packing materials is based on the purchase price including import duties and
other taxes, transport, handling and other costs directly attributable to the acquisition
of the goods and materials. Costs are determined on a standard cost basis for all raw
materials, apart from feed, where cost of inventories is determined on a first-in, first-
out basis.
Manufactured finished goods and work in progress
Cost of direct materials, labour and a proportion of manufacturing overheads
appropriate to the stage of manufacture. Costs are assigned on the basis of standard
cost. The cost of items transferred from biological assets is at their fair value less costs
to sell at the point of harvest.
Net realisable value
The estimated selling price in the ordinary course of business less estimated costs of
completion and the estimated costs necessary to make the sale.
d. Biological assets
Biological assets are recognised in the consolidated statement of financial position
at their fair value less costs to sell. The net gain or loss resulting from the fair value
measurement is recognised in the consolidated statement of comprehensive income.
The fair value of fish livestock is derived from the amount expected to be received
from the sale of the asset in an active market. The costs associated with growing the
fish (e.g. feed and labour costs) are directly capitalised to biological assets.
The fish are divided into two main groups, depending on the stage of the life
cycle. At the earliest stage of the life cycle, the fish are kept on land in freshwater
facilities. This encompasses roe, fry and smolt. When the fish are large enough to be
transferred to the sea, they are classified as biomass in sea. Fish onshore (smolt) are
recognised at accumulated cost, which is considered the best estimate of fair value
because of very little biological transformation. This assessment must be seen in the
light of the fact that smolt are currently transferred to the sea at a stage when their
weight is still relatively low. For fish in sea, the fair value is calculated by applying a
cash-flow based present value model. Fish stock is transferred to inventory at the
time of harvest. The transfer is recorded at its fair value less cost to sell at the point
of harvest which is deemed to be cost for the purposes of inventory valuation.
When estimating the fair value of the fish, a cash flow model is applied. The cash-
flow based present value model for estimating the fair value less cost to sell includes
all directly attributable cash inflows and outflows. In a hypothetical market with
perfect competition, a hypothetical buyer of live fish would be willing to pay the
present value of the estimated future profit from the sale of the fish when it is
ready for harvest. No deductions are made for sales expenses, as these are not
observable in the market. Such expenses are also deemed immaterial. The cash flow
is discounted monthly by a discount rate.
94New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
e. Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated
depreciation and impairment. Depreciation is provided on a straight line basis over the
estimated useful lives of the assets as follows:
Freehold landnot depreciated
Freehold buildingstwenty to fifty years
Building fit outthree to twenty five years
Leasehold improvementsfive to eighteen years
Plant, furniture and fittingsthree to twenty years
Motor vehiclesfive to ten years
Sea vesselsten to thirty years
The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial period end and adjusted prospectively if
appropriate. An asset’s carrying value is written down immediately to its recoverable
amount if its carrying value is greater than its estimated recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no
further future economic benefits are expected from its use or disposal. Any gain or loss
arising on de-recognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in profit or loss in
the period the asset is derecognised.
f. Group as a lessee
At the inception of a contract, the Group is required to assess whether a contract
contains a lease. A contract contains a lease if the contract conveys the right to control
the use of an identified asset for a period in exchange for consideration.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e.
the date the underlying asset is available for use). Right-of-use assets are measured at
cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made at or before the commencement date
less any lease incentives received. Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated useful lives of the assets.
The Group’s lease portfolio
Property leases
The Group’s real estate includes office buildings and storage facilities. The Group has
recognised some storage contracts that meet the identifiable criteria as a right-of-use
asset and corresponding liability portfolio under NZ IFRS 16.
Vehicle leases
The Group leases vehicles, which are predominantly used by sales staff and the
transportation of personnel between operating locations. These vehicles are generally
held for a term of four years.
95New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Plant and equipment leases
The Group leases equipment used for the production or processing of salmon.
The current leases relate to equipment such as compressors, generators and forklifts
operated throughout the group. The Group has elected to apply the recognition
exemption for short-term leases for all other machinery employed for less than 12
months duration and for leases where the underlying asset is of low value.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured
at the present value of lease payments to be made over the lease term. The lease
payments include fixed payments (including in-substance fixed payments) less any
lease incentives receivable, variable lease payments that depend on an index or a rate,
and amounts expected to be paid under residual value guarantees.
Short-term leases and leases of low-value assets
The Group applies short term lease recognition exemption to its short term leases of
equipment. It also applies the lease of low-value assets recognition exemption to leases
of equipment that are considered to be low value. Lease payments on short term leases
and leases of low-value assets are recognised as an expense on a straight-line basis over
the lease.
g. Impairment of non financial assets
The Group assesses, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for
an asset is required, the Group estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal
and its value in use. The recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is written down to
its recoverable amount.
h. Intangibles
Intangible assets acquired separately or in a business combination are initially measured
at cost. The cost of an intangible asset acquired in a business combination is its fair value
as at the date of acquisition. Following initial recognition, intangible assets are carried at
cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangible assets with finite lives are amortised over the useful life and tested for
impairment whenever there is an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset with
a finite useful life is reviewed at least at each financial period end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for prospectively by changing the amortisation
period or method, as appropriate, which is a change in accounting estimate. The
amortisation expense on intangible assets with finite lives is recognised in profit or loss in
the expense category consistent with the function of the intangible asset.
Intangible assets with indefinite useful lives or not yet available for use are not
amortised but are tested for impairment annually, either individually or at the cash-
generating unit level. The assessment of useful life is reviewed annually to determine
whether the indefinite life continues to be supportable. If not, the change in useful life
from indefinite to definite is made on a prospective basis.
96New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Trade marks
Useful lives: Indefinite
Internally generated or acquired:Acquired
Intellectual property, marine farm and hatchery licences
and marina berth
Useful lives: Finite
Amortisation method used:Straight line, five to thirty five years
Internally generated or acquired:Acquired
Computer Software
Useful lives: Finite
Amortisation method used:Straight line, four to seven years
Internally generated or acquired:Acquired
A summary of the policies applied to the Group’s intangible assets is as follows:
i. Research and development costs
Research costs are expensed as incurred. Development expenditures are capitalised as
intangible assets when the Group can demonstrate:
• Costs can be reliably measured.
• Completion of the project is technically feasible.
• Resources are available to complete the project.
• There is an intention to use the resulting asset and it will generate future
economic benefits.
During the period of development the asset is tested for impairment annually.
j. Employee benefits
Wages, salaries and annual leave
Liabilities for wages and salaries including non-monetary benefits and annual
leave expected to be settled within 12 months of the reporting date are recognised
in respect of employees’ services up to the reporting date. They are measured at
the amounts expected to be paid when the liabilities are settled. Liabilities for
accumulating annual leave are recognised when the leave is taken and are measured
at the rates paid or payable.
Long service leave
The liability for long service leave is recognised and measured at the present value of
expected future payments to be made in respect of services provided by employees
up to the reporting date using the projected unit credit method. Consideration is
given to expected future wage and salary levels, experience of employee departures
and periods of service.
Defined contribution plans
Contributions made to a defined contribution plan are expensed as incurred.
k. Contributed equity
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to
the issue of new shares or options are shown in equity as a deduction net of tax
from the proceeds. Other capital raising costs are expensed as incurred.
97New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
l. Revenue and income recognition
Revenue from contracts with customers
The Group is in the business of growing, processing, selling and distributing King
salmon to customers in New Zealand and overseas. Revenue from contracts with
customers is recognised when control of the goods is transferred to the customer
at the amount that reflects the consideration to which the Group expects to be
entitled in exchange for those goods. The Group has generally concluded that it
is the principal in its revenue arrangements because it typically controls the goods
before transferring them to the customer.
Interest income
Income is recognised as interest accrues using the effective interest method.
Insurance proceeds
Insurance proceeds are recognised in the financial statements when receipt is
virtually certain and can be measured reliably.
m. Taxes
Income taxes
Current tax assets and liabilities for the current and prior periods are measured
at the amount expected to be recovered from or paid to the taxation authorities
based on the current period’s taxable income. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted by the
balance date.
Deferred income tax is provided on all temporary differences at the balance date
between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes.
The carrying amount of deferred income tax assets is reviewed at each balance date
and reduced to the extent that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and
are recognised to the extent that it has become probable that future taxable profit
will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are
expected to apply to the period when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively enacted
at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity
and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable
right exists to set off current tax assets against current tax liabilities and the
deferred tax assets and liabilities relate to the same taxable entity and the same
taxation authority.
98New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST, except when:
• The GST incurred on a purchase of goods and services is not recoverable from the
taxation authority, in which case the GST is recognised as part of the cost
of acquisition of the asset or as part of the expense item as applicable.
• Receivables and payables, which are stated with the amount of GST included.
• The net amount of GST recoverable from or payable to the taxation authority
is included as part of receivables or payables in the consolidated statement of
financial position.
• Commitments and contingencies are disclosed net of the amount of GST recoverable
from or payable to the taxation authority.
• The Group recognises uncertain tax positions as a liability where it is probable that
an outflow of resources will be required.
n. Share-based payments
Certain employees of the Group receive remuneration in the form of share-based
payments, whereby employees render services as consideration for equity instruments
(equity-settled transactions). The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an appropriate valuation model.
That cost is recognised in employee benefits expense, together with a corresponding
increase in equity (share-based payment reserves), over the period in which the service
and, where applicable, the performance conditions are fulfilled (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting
date until the vesting date reflects the extent to which the vesting period has expired
and the Group’s best estimate of the number of equity instruments that will ultimately
vest. The expense or credit in the consolidated statement of comprehensive income
for the period represents the movement in cumulative expense recognised as at the
beginning and end of that period.
Service and non-market performance conditions are not taken into account when
determining the grant date fair value of awards, but the likelihood of the conditions
being met is assessed as part of the Group’s best estimate of the number of equity
instruments that will ultimately vest. Market performance conditions are reflected within
the grant date fair value. Any other conditions attached to an award, but without an
associated service requirement, are considered to be non-vesting conditions. Non-
vesting conditions are reflected in the fair value of an award and lead to an immediate
expense of an award unless there are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market
performance and/or service conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are treated as vested irrespective
of whether the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense
recognised is the grant date fair value of the unmodified award, provided the original
terms of the award are met. An additional expense, measured as at the date of
modification, is recognised for any modification that increases the total fair value of the
share-based payment transaction, or is otherwise beneficial to the employee. Where an
award is cancelled by the entity or by the counterparty, any remaining element of the
fair value of the award is expensed immediately through profit or loss.
99New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
a. New and revised standards adopted
There were no new or amended standards and interpretations issued by the External
Reporting Board (XRB) and the New Zealand Accounting Standards Board (NZASB)
that became effective for the period ended 30 September 2025 that had a significant
impact on the Group in the current consolidated financial statements.
b. New standards issued not yet adopted
In April 2024, the IASB issued IFRS 18 — Presentation and Disclosure in Financial
Statements to improve reporting of financial performance. IFRS 18 replaces IAS 1
Presentation of Financial Statements. It carries forward many requirements from IAS
1 and introduces increased disclosure of management defined performance measures
as well as new principles for aggregation and disaggregation of information included
in the consolidated statement of comprehensive income. IFRS 18 is applicable to the
Group beginning on 1 October 2027. The Group is currently evaluating the impact of the
adoption of IFRS 18 on its consolidated financial statements.
c. Change in accounting policy — recognition of government grants
In previous reporting periods, the Group’s exposure to government grants was not
considered material to the consolidated financial statements, and the associated
accounting policy was not separately disclosed. During the current reporting period
the Group entered into a significant funding partnership with the New Zealand
Government under the Sustainable Food and Fibre Futures (SFFF) fund. The funding
investment by the Government is for up to $11.7m over a period of 5 years. The
programme, ‘Future Farming: A Blueprint to Accelerate Salmon Farming in Aotearoa’,
encompasses three workstreams;
• Blue Endeavour Pilot — in relation to open ocean aquaculture (OOA),
• Recirculating Aquaculture Systems (RAS) Pilot — in relation to freshwater hatchery
technologies, and
• Novel Breeding Strategies to improve fish resilience and breeding accuracy.
The balances and transactions that are related to the SFFF funding programme are
new in this reporting period and due to the significance of the funding, management
has determined that the policy is now material to the users of the financial statements.
Further detail on the accounting for government grants is disclosed in Note 22.
Newly disclosed policy
Government grants are recognised where there is reasonable assurance that the grant
will be received, and all attached conditions will be complied with. When the grant
relates to an expense item, it is recognised as income on a systematic basis over the
periods that the related costs, for which it is intended to compensate, are expensed.
When the grant relates to an asset, it is recognised as income in equal amounts over
the expected useful life of the related asset.
Impact of the change
This change represents the introduction of a previously immaterial policy, rather than a
voluntary change in accounting policy or correction of an error under NZ IAS 8. As such,
no restatement of comparative information has been required. The new disclosure in
Note 22 has been included to provide transparency over a balance that has become
material in the current period.
Comparative information has been presented consistently; however, amounts for the
prior year remain immaterial and have not been reclassified or restated.
4. Changes in Accounting Policies and Disclosures
100New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Note
Sep 2025 Jan 2025
8 months12 months
Other income$000$000
Grant income22326 86
Release of early closed out foreign exchange contracts from OCI405 4,330
Net foreign exchange gains-226
Other income250 833
Total other income981 5,475
Sep 2025Jan 2025
8 months12 months
Employee benefits expenses$000$000
Included in cost of goods sold
Wages and salaries17,501 26,785
Defined contribution plan expenses474 725
Other employee benefits expenses1,523 2,266
Outsourced labour519 1,159
Included in selling and distribution expenses
Wages and salaries4,193 7, 393
Defined contribution plan expenses111 171
Other employee benefits expenses273 377
Outsourced labour635 978
Included in corporate expenses
Wages and salaries3,424 4,912
Defined contribution plan expenses101 145
Other employee benefits expenses506 494
Outsourced labour84 121
Total employee benefits expense29,344 45,526
6. Expenses
Sep 2025Jan 2025
8 months12 months
Other expenses include:$000$000
Research costs389 611
Net loss on sale of assets 100 64
Directors' fees440 681
Other directors' expenses69 4
Donations6 13
Net foreign exchange losses451 -
5. Other Income
101New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Sep 2025Jan 2025
8 months12 months
Depreciation and amortisation$000$000
Included in cost of goods sold
Depreciation3,992 5,592
Amortisation of intangibles72 136
Amortisation of leases554 1,106
Included in selling and distribution expenses
Depreciation95 133
Amortisation of intangibles11 19
Amortisation of leases720 538
Included in corporate expenses
Depreciation206 279
Amortisation of intangibles151 258
Amortisation of leases89 76
Total depreciation and amortisation15, 16, 175,890 8,137
Sep 2025Jan 2025
8 months12 months
Compensation of key management personnel of the Group$000$000
Short-term employee benefits 1,764 3,199
Post-employment benefits and medical benefits82 139
Share based payment expense69 128
Total compensation of key management personnel of the Group $1,9153,466
7. Finance Income and Costs
Sep 2025Jan 2025
8 months12 months
Finance income$000$000
Interest income 1,057 1,466
Total finance income1,057 1,466
Finance costs$000$000
Bank facility fees26 39
Interest on bank loans and overdrafts79 143
Interest on leases337 437
Total finance costs442 619
8. Income Tax
Sep 2025Jan 2025
8 months12 months
Recognised in the consolidated statement
of comprehensive income$000$000
Current income tax (credit)/expense(26) 4,359
Deferred tax relating to origination and reversal of temporary
differences
(2,631) 1,376
Total income tax (credit)/expense in the consolidated
statement of comprehensive income
(2,657) 5,735
Deferred tax credit /(expense) posted directly to other
comprehensive income
2,557 (2,983)
Tax expense / (credit) posted directly to equity- -
102
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Sep 2025Jan 2025
8 months12 months
Reconciliation of tax (credit)/expense to statutory income tax rate$000$000
(Loss)/profit before tax(8,984) 19,094
Income tax using the company tax rate 28%(2,516) 5,346
Non deductible / (non assessable) items(8) (2)
Prior period adjustment(54) (111)
Adjustment for varying tax rates(79) (138)
Impact of removal of deferred tax on buildings- 640
Total tax (credit)/expense(2,657) 5,735
Consolidated statement of financial position deferred tax assets
and liabilitiesSep 2025Jan 2025
Deferred tax liabilities $000$000
Fair value adjustment to biological assets(8,447) (11,127)
Unrealised gains on foreign currency hedges(923) (436)
Accounting cost adjustment for finished goods(39) (333)
Right-of-use assets(2,540) (2,820)
Total deferred tax liabilities(11,949) (14,716)
Deferred tax assets
Accelerated depreciation for tax purposes
1,276
1,280
Lease liabilities
2,670
2,925
Provision for doubtful trade debtors
93
89
Provision for employee benefits
777
1,014
Unrealised losses on foreign currency hedges
802
2,984
Other provisions
271
290
Total deferred tax assets
5,889
8,582
Net deferred tax assets / (liabilities)(6,060) (6,134)
Movement of deferred tax assets and liabilitiesSep 2025Jan 2025
Deferred tax liabilities $000$000
Fair value adjustment to biological assets(2,680) (1,409)
Unrealised gains /(losses) on foreign currency hedges487 (629)
Accounting cost adjustment for finished goods(294) (547)
Right-of-use assets(280) 952
(2,767) (1,633)
Deferred tax assets
Accelerated depreciation for tax purposes 4 761
Lease liabilities255 (993)
Provision for doubtful trade debtors(4) (88)
Provision for employee benefits237 (262)
Tax losses- 1,607
Unrealised gains / (losses) on foreign currency hedges2,182 (1,139)
Other provisions19 140
2,693 26
Total deferred tax movement(74)(1,607)
Comprising:
Deferred tax movement through the consolidated statement of
comprehensive income
(2,631) 1,376
Deferred tax movement through other comprehensive income2,557 (2,983)
Total deferred tax movement(74) (1,607)
Imputation credit account
The imputation credit account balance in the Group as at 30 September 2025 is $14,145k
(31 January 2025: $14,250k).
103New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
In FY21 and FY22, in the money foreign exchange contracts were closed out early
and recognised in the hedge reserve. As the foreign currency contracts come to their
original term date they have been recognised in other comprehensive income along
with the tax impact.
Sep 2025Jan 2025
8 months12 months
Movement in reserves$000$000
Forward currency and option contracts
Gain/(loss) on cash flow hedges 7,659 (9,739)
Income tax effect on gain/(loss) on cash flow hedges (2,144) 2,726
Hedging gain/(loss) reclassified to profit & loss 1,862 3,536
Income tax effect on reclassifications to profit & loss (526) (957)
Release of early closed out foreign exchange contracts (405) (4,330)
Deferred tax on early closed out foreign exchange contracts 113 1,214
Currency translation differences
Translation of foreign operations (17) 787
Net movement in other comprehensive income 6,542 (6,763)
9. Components of Other Comprehensive Income 10. Earnings Per Share
Basic earnings per share amounts are calculated by dividing the profit for the period
attributable to shareholders of the Company by the weighted average number of
ordinary shares on issue during the period. Diluted earnings per share are calculated by
dividing the profit attributable to shareholders of the Company by the weighted average
number of ordinary shares outstanding during the period plus the weighted average
number of shares that would be issued on conversion of all dilutive potential ordinary
shares into ordinary shares.
Sep 2025Jan 2025
Earnings per share$000$000
Profit /(loss) attributable to ordinary equity holders (6,327) 13,359
# of Shares# of Shares
000000
Weighted average number of ordinary shares for basic and
diluted earnings per share
538,182538,433
Basic earnings per share $(0.01) $0.02
Diluted earnings per share $(0.01) $0.02
104
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
11. Cash and Cash Equivalents
Sep 2025Jan 2025
Cash and cash equivalents$000$000
Cash at bank and on hand15,382 13,830
Short-term deposits30,247 35,908
Total cash and cash equivalents45,629 49,738
Cash at bank earns interest at the bank’s floating rates. Short-term deposits are made
for varying periods between 1 and 3 months, depending on the cash requirements of the
Group, and earn interest at the respective term deposit rates.
Sep 2025Jan 2025
Trade and other receivables$000$000
Trade receivables10,946 13,716
Provision for expected credit losses(313) (302)
Prepayments1,342 3,032
GST receivable2,827 707
Other receivables125 109
Total trade and other receivables14,927 17,262
Trade receivables generally have 20-30 day terms and are recognised at their
realisable value.
13. Inventories
Sep 2025Jan 2025
Ageing analysis of trade receivables$000$000
> 90 days overdue384 179
61 – 90 days overdue15 9
31 – 60 days overdue64 38
< 30 days overdue1,936 1,634
Not yet due8,547 11,856
Total receivables10,946 13,716
Provision for expected credit losses
As at beginning of the year302 -
Increase /(decrease) in provision for expected credit losses24 302
Reversal of unused amounts(13) -
As at period end313 302
Sep 2025Jan 2025
Inventories$000$000
Raw materials6,457 8,528
Work in progress353 757
Finished goods14,819 17,905
Total inventories21,629 27,190
12. Trade and Other Receivables
The carrying value of finished goods as at 30 September 2025 includes a fair value uplift
at the point of harvest of $2,371k (31 January 2025: $4,554k) and net realisable value
provision of $1,910k (2025: $3,374k).
105New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Sep 2025Jan 2025
Amount of inventories recognised as an expense in the consolidated
statement of comprehensive income$000$000
Cost of inventories recognised as an expense118,856 194,722
Movement in net realisable value provision(1,286) (1,683)
Total cost of goods sold including fair value uplift at point of harvest117,570 193,039
The cost of inventories recognised as an expense for the period ended 30 September
2025 includes a fair value uplift at the point of harvest of $19,660k (31 January 2025:
$32,443k). This cost is included in the cost of goods sold in the consolidated statement
of comprehensive income.
The cost of inventory includes fish harvested at the fair value less cost to sell at harvest
date, (“deemed cost”). As at 30 September 2025 no volumes were forecasted to be sold
at returns materially below deemed cost plus further manufacturing costs.
Sep 2025Jan 2025
8 months12 months
Live weight harvest & estimated closing biomasstonnestonnes
Total live weight harvested for the period3,767 7, 70 3
Closing fresh water stocks107 171
Closing sea water stocks4,136 4,708
Total estimated closing biomass live weight as at period end4,243 4,879
Sep 2025Jan 2025
8 months12 months
Fair value recognised in the statement of comprehensive income$000$000
Fair value included in cost of goods sold(19,660) (32,443)
Fair value gain on biological transformation10,088 27,411
Total change in fair value(9,572) (5,032)
14. Biological Assets
Sep 2025Jan 2025
8 months12 months
Reconciliation of the carrying value of biological assets$000$000
As at 1 February88,145 94,460
Increase due to production51,673 86,672
Decrease due to harvest(38,833) (73,896)
Decrease due to mortality(11,107) (14,059)
Changes in fair value(9,572) (5,032)
As at balance date80,306 88,145
The Group has two hatcheries in the South Island and seven operational marine salmon
farms in the Marlborough Sounds. The fish livestock typically grow for up to 31 months
before harvest.
106New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Fair value measurement
Biological assets are, in accordance with NZ IAS 41, measured at fair value less costs to
sell. All fish at sea are subject to a fair value calculation, while broodstock and smolt are
measured at cost less impairment losses (as the best estimate of fair value given little
biological transformation). Measurement of fair value is performed using a discounted
cash flow model and is categorised at Level 3 in the fair value hierarchy, as the input is
mostly unobservable.
The valuations are based on an income approach and takes into consideration
unobservable inputs based on biomass in the sea, the estimated growth rate, mortality
and cost to completion at site level. Quality and size of the fish going forward and
forecast sales price are considered at a Group level. A relevant contributory asset charge
is included within the expected cash flow.
The fair value model calculates the net present value of expected cash flow. Valuation
is based on a variety of premises, many of which are unobservable. For mature fish
(ready for harvesting) on the reporting date, uncertainty mainly involves realised prices
and volume. For immature fish (not ready for harvesting), the level of uncertainty
is generally higher as the immaturity introduces uncertainty around biological
transformation and mortality.
Sales Price
There is no independently observable market price for King salmon ex-harvest and
therefore the sales price is based on the sales price the Group receives for finished product.
Estimated remaining production cost
The planned point of harvesting is assessed based on the Group’s production plan for
the year ahead, however, there may be uncertainty regarding the estimated growth
rate which in turn would affect cost. For immature fish, the fair value is adjusted by
the estimated remaining cost necessary to grow the fish to optimal harvest weight.
Forecast production costs include provisions for estimated feed prices, the cost of labour
and other costs of biological transformation. Estimations are affected by uncertainty
regarding the feed pricing, the sea temperature and other conditions affecting growth
and costs.
Volume
Estimate harvest volume is based off the size and weight of fish on balance date
adjusted for the forecast future growth and mortality until point of harvest. The
estimated number of fish is based on the number of smolt transferred to the sea,
and mortality and growth are a given percentage of the fish and biomass in the sea
respectively. These percentages are determined separately for each site based on the
environmental factors prevalent at the site and expected for the forecast period.
Discount Rate
The discount rate considers both the time value (tying up capital) and risk adjustment
(risk related to volume, cost and price). The time value of money is estimated based
off the NZ 10 year government bond. The risk adjustment reflects the price discount
a hypothetical buyer would demand as compensation for the risk assumed by investing
in live fish rather than another investment. This risk adjustment has been estimated
using the company’s weighted average cost of capital adjusted for a return on the
processing and sales operations as well as other contributory assets on the fish farming
side of the business. Removing these components leaves the risk adjusted discount rate
specific to biological assets at 16.0% for the period (31 January 2025: 14.5%).
107New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Fair value risk and sensitivity
New Zealand King Salmon considers three components to be key parameters for
valuation: price, estimated harvest biomass volume and feed cost. The following
table is a sensitivity analysis, showing the change in the fair value of the biological
assets, and hence the Company’s profit before tax, in the event of changes in these
parameters. The estimate of fair value of the biomass will always be based on
uncertain assumptions, even though the Group has built up expertise in assessing
these factors.
Blue Endeavour Pilot
The Blue Endeavour Pilot is the first stage of the Group’s Open Ocean Aquaculture
Strategy, which covers the installation and trial farming of two pens at the Blue
Endeavour site over two production cycles (2025-26 and 2026-27). This Pilot is New
Zealand’s first consented open ocean site for aquaculture and, as such, there are
inherent uncertainties regarding how this model and associated risks will differ from
the current operational model.
Determining the harvest volume is particularly uncertain as, having never farmed
fish in this environment and as this is a novel approach for the King salmon species,
there is no historical data to generate future projections on the expected growth and
mortality levels for these fish. In addition, there are also risks associated with installing
infrastructure in this environment, towing fish to/from the site and equipment failure
that could result in an event where no biomass was harvested.
The reporting period ended 30 September 2025 marks the first period in which the
pilot fish were at sea. As all fish at sea are subject to fair value measurement, these
fish have been included in our fair value calculation for the first time. To account
for the additional risk of farming these fish in an unknown environment (the open
ocean), a conservative harvest volume has been applied, informed by the most recent
mortality and growth data. Furthermore, the harvest sensitivity analysis below has
been updated to illustrate the potential volatility and downside risk associated with
Blue Endeavour harvest volumes relative to standard operations.
Climate risk impact on biological assets
The Group recognises that climate-related risks, such as warmer water temperatures,
can impact on the fair value of biological assets. Climate-related risks can impact on
fish health factors, such as increased mortality and lower than anticipated growth rates.
The Group notes that fish mortality is multi-factorial with the dominant correlation
currently occurring with prolonged elevated water temperature which increases stress
and reduces the fish’s resistance to bacteria and other pathogens. The Group consider
these risks when assessing the biomass measurement and fair value of biological assets
as at 30 September 2025.
Sep 2025Jan 2025
Sensitivity analysis of biomass — effect on pre-tax fair value
gain on biological transformation
$000$000
Change in Sales Price1+10%22,561 20,935
Change in Sales Price1-10%(22,561) (20,935)
Change in harvest volume2+300MT8,308 7,642
Change in harvest volume2-300MT(8,308) (7,642)
Change in harvest volume
2,3
-800MT(22,153) n/a
Change in Feed Price
1
+10%(3,690) (2,804)
Change in Feed Price1 -10%3,690 2,804
1 In respect of sales and feed pricing one of the key variables is FX for which the group has hedging in place
2 Harvest volume is measured at the Gilled and Gutted weight (G&G)
3
Harvest sensitivity includes impact of Blue Endeavour pilot uncertainty
108New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Freehold
land and
buildings
Plant,
equipment
and fittings
Vehicles and
sea vessels
Capital work
in progressTotal
Cost$000$000$000$000$000
As at 1 February 202417,113 100,980 5,116 3,538 126,747
Additions- - - 10,177 10,177
Disposals(45) (512) (63) - (620)
Transfers from WIP1,982 3,495 299 (5,776) -
As at 31 January 202519,050 103,963 5,352 7,939 136,304
Additions- - - 12,584 12,584
Disposals- (514) (190) - (704)
Transfers from WIP714 3,660 674 (5,048) -
As at 30 September 202519,764 107,109 5,836 15,475 148,184
Depreciation and impairment
As at 1 February 20244,642 71,280 2,490 - 78,412
Depreciation688 5,096 220 - 6,004
Disposals(18) (470) (51) - (539)
As at 31 January 20255,312 75,906 2,659 - 83,877
Depreciation492 3,595 206 - 4,293
Disposals- (385) (190) - (575)
As at 30 September 20255,804 79,116 2,675 - 87,595
Net Book Value
As at 31 January 202513,738 28,057 2,693 7,939 52,427
As at 30 September 202513,960 27,993 3,161 15,475 60,589
15. Property, Plant and Equipment
Property, plant and equipment is stated at historical cost less depreciation and
any impairment adjustments. Historical cost includes expenditure that is directly
attributable to the acquisition of property, plant and equipment. Asset residual values
and useful lives are reviewed, and adjusted if appropriate, at each balance date or
whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable.
As at 30 September 2025 work in progress includes spend related to the purchase of
the Cloudy Bay site and assets required for the Blue Endeavour pilot farm. No assets
related to the pilot have been capitalised and commenced depreciation in the current
period as projects are ongoing and not yet available for use.
Borrowing costs
There were no borrowing costs capitalised in the 8-month period ending
30 September 2025 (31 January 2025: $nil).
109New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Development
in progressTrademarks
Farm and
hatchery
licensesSoftwareTotal
Cost$000$000$000$000$000
As at 1 February 20246,285 242 4,209 5,794 16,530
Reclassification to PPE to capital
work in progress
(94) - - - (94)
As at 31 January 20256,191 242 4,209 5,794 16,436
Additions- - - - -
As at 30 September 20256,191 242 4,209 5,794 16,436
Amortisation and impairment
As at 1 February 20246,094 213 2,277 4,664 13,248
Amortisation- - 103 310 413
As at 31 January 20256,094 213 2,380 4,974 13,661
Amortisation- - 51 183 234
As at 30 September 20256,094 213 2,431 5,157 13,895
Net Book Value
As at 31 January 202597 29 1,829 820 2,775
As at 30 September 202597 29 1,778 637 2,541
16. Intangibles
Land &
Buildings
Motor
Vehicles
Plant &
Equipment
Total
Cost$000$000$000$000
As at 1 February 2024 8,912 1,417 1,296 11,625
Additions 3,262 428 1,226 4,916
Disposals (1,605) (299) (544) (2,448)
Remeasurement 265 (10) 18 273
As at 31 January 2025 10,834 1,536 1,996 14,366
Additions - 314 65 379
Disposals - (302) (24) (326)
Remeasurement 2 (3) 2 1
As at 30 September 2025 10,836 1,545 2,039 14,420
Amortisation
As at 1 February 2024 3,552 663 741 4,956
Amortisation 818 330 572 1,720
Disposals (1,605) (299) (509) (2,413)
As at 31 January 2025 2,765 694 804 4,263
Amortisation 803 230 330 1,363
Disposals - (272) (17) (289)
As at 30 September 2025 3,568 652 1,117 5,337
Net Book Value
As at 31 January 2025 8,069 842 1,192 10,103
As at 30 September 2025 7,268 893 922 9,083
17. Right-of-use Assets
110New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Land &
Buildings
Motor
Vehicles
Plant &
Equipment
Total
$000$000$000$000
Lease Liabilities at 1 February 2024 5,567 768 565 6,900
Additions 3,262 428 1,226 4,916
Disposals - - (37) (37)
Remeasurement 275 (10) 18 283
Interest for the period 358 27 52 437
Lease payments made (1,051) (355) (612) (2,018)
Lease Liabilities at 31 January 2025 8,411 858 1,212 10,481
Additions - 314 65 379
Disposals - (24) (11) (35)
Remeasurement - (6) 1 (5)
Interest for the period 289 20 28 337
Lease payments made (1,002) (250) (353) (1,605)
Lease Liabilities at 30 September 2025 7,698 912 942 9,552
18. Lease Liabilities
Short term leases
The Group recognised $253k of payments for short-term lease equipment in the
period (31 January 2025: $520k).
Total lease payments
The Group had total cash outflows for leases of $1,857k for the period ended
30 September 2025 (31 January 2025: $2,539k).
Sep 2025Jan 2025
Lease liabilities$000$000
Current1,725 1,834
Non-current7,827 8,647
Total lease liabilities 9,552 10,481
19. Interest Bearing Loans and Borrowings
Sep 2025Jan 2025
Current interest bearing loans and borrowings$000$000
Secured bank loans2,000 2,000
Other borrowings- 2,505
Total current interest bearing loans and borrowings2,000 4,505
20. Trade and Other Payables
Sep 2025Jan 2025
$000$000
Trade payables10,309 9,799
Other payables5,135 3,657
Total trade and other payables15,444 13,456
111
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Sep 2025Jan 2025
8 months12 months
At 1 February $000$000
Received /receivable during the period (SFFF)3,057 -
Received /receivable during the period (Other)76 515
Recognised in other income (SFFF)(280) -
Recognised in other income (Other)(47) (86)
Recognised in expenses (Other)(29) (429)
At period end2,777 -
21. Employee Liabilities22. Government Grants
Sep 2025Jan 2025
Current employee liabilities$000$000
Accrued salaries and wages830 739
Bonuses295 1,320
Employee annual leave benefits 2,713 2,522
Long service leave315 257
Total current employee liabilities4,153 4,838
Non-current employee benefits
Long service leave282 326
Total non-current employee benefits282 326
Long service leave
Long service leave provisions are calculated based on the expected future payments
to employees, discounted to their net present value.
Sep 2025Jan 2025
$000$000
Deferred income
Current- -
Non-current2,777 -
Total deferred income2,777 -
Government grants have been received during the period for research & development
expenses and for the purchase of certain items of property, plant and equipment. There
are no unfulfilled conditions or contingencies attached to these grants at period end.
The deferred income balance relates to grants received under the Sustainable Food and
Fibre Futures (SFFF) fund to support the acquisition of property, plant & equipment
needed to deliver the ‘Future Farming: A Blueprint to Accelerate Salmon Farming in
Aotearoa’ programme. These amounts will be recognised in profit or loss over the assets’
remaining useful lives once capitalised. No assets under this programme have been
capitalised in the current period.
112New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
23. Commitments and Contingencies
Capital commitments
The Group has entered into agreements to purchase land, buildings, plant and
equipment. As at 30 September 2025 the total commitment is $8,685k (31 January
2025: $6,697k).
Guarantees
The Group has two guarantee facilities totalling $134k (31 January 2025: $138k).
24. Risk Management
The Group’s activities expose it to a variety of risks: market risk, credit risk, liquidity
risk and climate change risk. The Audit, Finance, Risk and Project Development
Committee has responsibility for the oversight of all risk domains, which includes
managing climate risk, as delegated by the Board. The Group uses derivative financial
instruments to hedge certain risk exposures. Financial risk management is the
responsibility of the Chief Financial Officer in accordance with the Treasury Policy
approved by the Board of Directors.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument
will fluctuate because of changes in market prices. This comprises of two key types of
risks; currency and interest rate risk.
Currency risk
The Group has exposure to foreign exchange risk as a result of transactions
denominated in foreign currency, arising primarily from normal trading activities, but
also from the net investment in the foreign subsidiary. The Group’s exposure to foreign
currency risk at the reporting date was as follows:
Sep 2025
In NZD ‘000sUSDAUDJPYEUROther
Trade and other receivables3,563 845 104 199 176
Trade and other payables(1,897) (4,433) (2) (969) (77)
Gross consolidated statement of
financial position exposure
1,666 (3,588) 102 (770) 99
Forward exchange contracts and
options — nominal amount
159,30730,437 9,293 - -
Jan 2025
In NZD ‘000sUSDAUDJPYEUROther
Trade and other receivables6,287 1,367 173 365 202
Trade and other payables(1,818) (3,528) (20) (79) (44)
Gross consolidated statement
of financial position exposure
4,469 (2,161) 153 286 158
Forward exchange contracts and
options — nominal amount
212,99828,84214,918--
The Group manages its foreign currency risk by hedging its future exposure in respect of
its import purchases and its export sales, over a maximum of five years, when exposures
are considered highly probable. The Group hedges this exposure with the use of forward
foreign exchange contracts and options.
113New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Sep 2025Jan 2025
Foreign currency forward exchange contracts and optionsNZD $’000NZD $’000
Carrying amount (current and non-current)434 (9,102)
Notional amount199,037 256,758
Maturity DateOct 2025 – Jan 2028Feb 2025 – Jul 2027
Hedge ratio1:11:1
Change in fair value of outstanding instruments since 1 February6,504 (9,393)
Change in value of hedged item used to determine hedge
effectiveness
(6,504)9,393
Average hedged rate
USD0.59950.6127
AUD0.91990.9188
JPY69.9570.39
Realised gains /losses on exercise of foreign exchange contracts and options is
recognised within revenue and cost of goods sold when the hedged transactions occur.
Foreign exchange forward contracts and options are designated as hedging instruments
in cash flow hedges of highly probable forecast sales in USD, AUD and JPY and forecast
purchases in USD and AUD. The Group has typically hedged 50-55% of the net exposure
of these forecast transactions. The foreign exchange forward contract balances vary
with the level of expected foreign currency sales and purchases and changes in foreign
exchange forward rates.
There is an economic relationship between the hedged items and the hedging
instruments as the terms of the foreign exchange and commodity forward contracts
and options match the terms of the expected highly probable forecast transactions
(i.e., notional amount and expected payment date). The Group has established a hedge
ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange
and commodity forward contracts and options are identical to the hedged risk
components. To test the hedge effectiveness, the Group uses the hypothetical derivative
method and compares the changes in the fair value of the hedging instruments against
the changes in fair value of the hedged items attributable to the hedged risks.
The hedge ineffectiveness can arise from:
• Differences in the timing of the cash flows of the hedged items and the
hedging instruments
• Different indexes (and accordingly different curves) linked to the hedged risk
of the hedged items and hedging instruments
• The counterparties’ credit risk differently impacting the fair value movements
of the hedging instruments and hedged items
• Changes to the forecasted amount of cash flows of hedged items and
hedging instruments
The Group has a policy of hedging foreign exchange exposures within a range of hedging
limits broadly summarised as follows: Up to two years – 15% to 100%, two to five years –
0% to 50%. The notional contract amounts of forward foreign exchange contracts and
options outstanding at balance date were $30.4m on the import side (31 January 2025:
$28.8m) and $168.6m on the export side (31 January 2025: $227.9m), for delivery over
the next three financial years, in line with anticipated payment dates.
The Group imports nearly all of its feed from Australia, purchases of which are in
Australian dollars. The Group exports salmon to many countries, the major ones being
the United States, China, Australia, and Japan. Sales are denominated in United States
dollars (USD), Australian dollars (AUD) and Japanese yen (JPY) respectively. In order
to protect against exchange rate movements, the Group has entered into forward
exchange contracts and options to hedge the net exposure to USD, AUD and
JPY respectively.
114New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
The NZ dollar equivalent of unhedged currency risk on assets at balance date is $2.1m
(31 January 2025: $1.1m) whilst the NZ dollar equivalent of unhedged currency risk on
liabilities at balance date is $68k. (31 January 2025: $62k).
Currency Sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in
AUD, USD and JPY exchange rates. The impact on the Group’s pre-tax profit is the result
of a change in fair value of monetary assets and liabilities. The impact on the Group’s
equity is due to changes in the fair value of forward exchange contracts and options
designated as cash flow hedges.
Interest rate risk
The Group has fixed rate debt (which exposes the Group to risk associated with
movements in interest rates) maturing in October 2025. No other debt is drawn as at
30 September 2025.
Credit risk
Credit risk is the risk of financial loss that arises if a counterparty to a financial
instrument does not meet its contractual obligations. Financial instruments which
potentially subject the Group to credit risk principally consist of bank balances, trade
receivables, derivative financial instruments and financial guarantees.
Customer credit risk is managed centrally subject to the Group’s established policy,
procedures and control relating to customer credit risk management. Credit quality
of a customer is assessed based on an extensive external credit rating scorecard and
individual credit limits are defined in accordance with this assessment. Outstanding
customer receivables and contract assets are regularly monitored and any shipments
to major customers are generally covered by trade credit insurance.
Change in
NZD/AUD rateEquityProfit/(Loss)
$000$000
Sep 2025+10%(2,825) 111
-10%3,453 (136)
Jan 2025+10%(2,585) 22
-10%3,160 (27)
Change in
NZD/USD rateEquityProfit/(Loss)
$000$000
Sep 2025+10%12,228 (1,447)
-10%(15,382) 1,768
Jan 2025+10%16,022 (1,669)
-10%(20,092) 2,040
Change in
NZD/JPY rateEquityProfit/(Loss)
$000$000
Sep 2025+10%409 (55)
-10%(485) 67
Jan 2025+10%625 (58)
-10%(726) 71
115
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
An impairment analysis is performed at each reporting date using the accounts receivable
aging report to measure expected credit losses. The impairment analysis is based on
days past due for all customers with coverage by trade credit insurance. The calculation
reflects the probability-weighted outcome, the time value of money and reasonable and
supportable information that is available at the reporting date about past events, current
conditions and forecasts of future economic conditions. Generally, trade receivables are
written-off if past due for more than one year and are not subject to enforcement activity.
Financial instruments are only entered into with banks that have in place an executed
International Swaps and Derivatives Association (ISDA) Master Agreement with the Group.
Maximum exposures to credit risk as at balance date are:
Sep 2025Jan 2025
$000$000
Cash and short term deposits45,629 49,738
Trade and other receivables14,927 17,262
Other financial assets3,000 3,000
The above maximum exposures are net of any recognised provision for losses. Term
deposit of $3m is held under a Specific Security Agreement with a second NZ bank
securing a derivatives agreement.
Concentrations of credit risk
Bank balances are maintained with National Australia Bank in Australia, PNC Bank in
USA, and with Bank of New Zealand and Kiwibank in New Zealand. NZKS has two major
customers for the period 1 February 2025 to 30 September 2025 covering 27.1% of total
net revenue. Beyond these larger customers there is a wide spread of debtors, in terms
of size and geographical location within New Zealand and overseas. Beyond these larger
customers there is a wide spread of debtors, in terms of size and geographical location
within New Zealand and overseas. Concentration of credit risk in trade receivables is not
considered significant as the Group’s customers operate in different market channels
and geographic areas.
Liquidity risk
The Group performs cash flow forecasting activities on a daily basis to ensure it has
sufficient cash to meet operational needs. Surplus cash is invested in term deposits.
Liquid assets are maintained at all times at an amount sufficient to cover the forecast
cash payments to employees, suppliers, tax authorities and banking institutions as they
fall due.
The following table analyses the undiscounted contractual cash flows for all
financial liabilities:
Less than
one year
Between
one and
two years
Between
two and
five years
Five + years
As at 30 September 2025$000$000$000$000
Bank loans2,000 - - -
Lease liabilities2,165 2,064 3,683 3,881
Trade and other payables15,444 - - -
Financial guarantee contracts134 - - -
Total non-derivative liabilities 19,743 2,064 3,683 3,881
Derivatives — inflow1,817 1,179 300 -
Derivatives — outflow(2,431) (430) - -
Total derivative liabilities (614) 749 300 -
116
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Less than
one year
Between
one and
two years
Between
two and
five years
Five + years
As at 31 January 2025$000$000$000$000
Bank loans2,000 - - -
Lease liabilities2,319 2,015 3,805 4,894
Trade and other payables13,456 - - -
Other Borrowings2,505 - - -
Financial guarantee contracts138 - - -
Total non-derivative liabilities 20,418 2,015 3,805 4,894
Derivatives — inflow1,016 507 32 -
Derivatives — outflow(7,153) (3,381) (125) -
Total derivative liabilities (6,137) (2,874) (93) -
Climate Risk
The Group recognises climate change will have an impact on our operations. The key
risks are both physical risks (climate and water temperature impacting fish health)
and transition risks resulting from the process of consumers adjusting their taste and
preferences towards a lower carbon economy. During the transition period, regulatory
risk has also been identified, as the landscape continues to be dynamic, cost of
compliance is increasing and not showing any signs of stabilising. The Audit, Finance,
Risk & Project Development Committee has responsibility for the oversight of all risk
domains, which includes managing climate risk, as delegated by the Board.
25. Fair Value of Financial Instruments
The carrying value of cash and short term deposits, term deposits, trade receivables, trade
payables and other current liabilities is considered a reasonable approximation to their fair
value due to the short term maturities of these instruments.
The carrying value of the Business Finance Scheme Loan via BNZ is $2m (31 January 2025:
$2m) and is considered a reasonable approximation of its fair value due to the short term
maturity of the drawing.
The following financial instruments of the Group are carried at fair value:
Sep 2025Jan 2025
Current derivative financial assets$000$000
Forward exchange contracts1,339 460
Foreign exchange options478 556
Total current derivative financial assets1,817 1,016
Current other financial assets
Term deposits (4 -12 month term)3,000 3,000
Total other current financial assets3,000 3,000
Non-current derivative financial assets
Forward exchange contracts1,302 45
Foreign exchange options177 495
Total non-current derivative financial assets1,479 540
Current derivative financial liabilities
Forward exchange contracts1,336 4,438
Foreign exchange options1,095 2,715
Total current derivative financial liabilities2,431 7,153
117
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Valuation methods
Financial instruments have been categorised into the following hierarchy and
valued according to the following definitions, based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 1: Quoted prices in active markets for identical assets or liabilities that the entity
can access at the measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: Inputs for the assets or liabilities that are not based on observable market
data (unobservable inputs)
All derivative financial instruments for which a fair value is recognised have been
categorised within level 2 of the fair value hierarchy. Industry experts have provided
the fair values for all derivatives based on an industry standard model. There were no
transfers between Level 1 and Level 2 during the period ended 30 September 2025
(31 January 2025 — nil).
26. Capital Management
Group Capital
The capital of the Group consists of share capital, reserves and retained earnings.
The Group’s objectives when managing capital are to safeguard the Group’s ability to
continue as a going concern in order to provide returns for shareholders, benefits for
shareholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure the Group may adjust dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to
reduce debt.
Ordinary shares are fully paid with no par value. Each ordinary share has an equal right
to vote, to participate in dividends and to share in any surplus on winding up of the
Company. No dividend was declared nor paid during the period ended 30 September
2025. (31 January 2025: No dividend was declared nor paid).
27. Capital and Reserves
Share Capital
Sep 2025Jan 2025
Issued shares$000$000
Ordinary shares538,183 538,183
Total issued shares538,183 538,183
Non-current derivative financial liabilities
Forward exchange contracts151 2,417
Foreign exchange options279 1,089
Total non-current derivative financial liabilities430 3,506
118
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Reserves
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising
from the translation of the financial statements of the foreign subsidiaries.
Hedge reserve
The hedge reserve represents the unrealised gains and losses on foreign currency forward
contracts that the Group has taken out in order to mitigate foreign currency risks, net of
deferred tax. Also included are the realised gains on early closed foreign currency forward
contracts where the hedged future cash flows are still expected to occur (net of tax).
Retained earnings
Retained earnings represent the profits retained in the business.
Share based payment reserve
The share-based payment reserve relates to two long term incentive (LTI) schemes
(31 January 2025: two schemes). The performance share rights (PSR) LTI scheme was
approved in the period ended 31 January 2025. A total of 2,176,433 PSR were issued to
eligible senior employees under the PSR LTI scheme in the period ended 30 September
2025 (31 January 2025: 4,889,679 PSRs were issued).
Sep 2025Jan 2025
$000$000
Unrealised (gain) / loss(382) 6,467
Realised (gain) / loss- (292)
Total gain / (loss) on hedge reserves (382)6,175
28. Events After Balance Date
Dividend
No final dividend was declared in respect of the period ended 30 September 2025 (31
January 2025: Nil).
Purchase of commercial property
During the period ended 30 September 2025, the Group announced the unconditional
purchase of a commercial site for $8.14m. A deposit of $814k was paid during the
current period. After balance date on 7 October 2025, the purchase transaction settled,
with NZKS making payment of the remaining balance. NZKS used existing cash on
hand to fund the purchase.
# of SharesShare Capital
Sep 2025Jan 2025Sep 2025Jan 2025
Movement in ordinary share capital000000$000$000
The beginning of the period538,182 541,455 180,143 180,143
Share issue- - - -
Cancellation of shares- (3,273) - -
Total share capital as at period end538,182 538,182 180,143 180,143
119
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
The principal activity of The New Zealand King Salmon Co. Limited is the farming,
processing, sale and distribution of salmon. The activity of New Zealand King Salmon
Exports Limited, The New Zealand King Salmon Pty Limited, and New Zealand King
Salmon USA Incorporated is the sale of salmon.
At balance date Oregon Group Limited owned 39.55% (31 January 2025: 39.79%),
China Resources Ng Fung Limited owned 9.87% (31 January 2025: 9.87%) and NZ
Superannuation Fund owned 8.88% (31 January 2025: 8.88%) of the shares in
New Zealand King Salmon Investments Limited.
SubsidiaryCountry of IncorporationEquity Interest
The New Zealand King Salmon Co. LimitedNew Zealand100%
New Zealand King Salmon Exports LimitedNew Zealand100%
The New Zealand King Salmon Pty LimitedAustralia100%
New Zealand King Salmon USA IncorporatedUnited States of America100%
29. Related Party Disclosures
Subsidiaries
New Zealand King Salmon Investments Limited has the following trading subsidiaries.
Sep 2025Jan 2025
8 months12 months
Related party payments$000$000
Goods and services purchased from other related parties- -
Directors fees411 650
Total related party payments411 650
Related party sales$000$000
Goods sold to related parties
1
5,449 4,444
Total related party sales5,449 4,444
Amounts owing to related partiesSep 2025Jan 2025
Current amounts owing to related parties$000$000
Other amounts owing to related parties237 237
Fees payable to directors123 103
Total current amounts owing to related parties360 340
Amounts owing by related parties$000$000
Amounts owing by related parties271 335
Total amounts owing by related parties271 335
1
During the prior period NZKS sold King Salmon to China through China Resources Food Supply Chain Co. Limited, 40%
owned by China Resources Enterprise Limited, who is a shareholder of NZKS. Immaterial sales of salmon products were also
made to Directors during this period.
Transactions with related parties
The following provides the total amount of transactions that were entered into
with related parties for the relevant financial period:
120New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
30. Auditor’s Remuneration
Sep 2025Jan 2025
8 months12 months
$000$000
Audit fees — PwC359 320
Other assurance services — PwC61 55
Other services — PwC14 21
Total auditor's remuneration434 396
In the current period ‘other assurance services’ relate to the limited assurance of
greenhouse gas emissions and ‘other services’ to treasury advisory services.
31. Cash Flow Information
Sep 2025Jan 2025
8 months12 months
Cash generated from operating activities$000$000
(Loss)/profit before tax(8,984) 19,094
Adjusted for
Depreciation and amortisation5,890 8,137
(Gain)/loss on sale of assets100 64
Release of early closed out foreign exchange contract close outs from OCI(405) (4,330)
Share-based payments92 140
Net foreign exchange differences100 213
Net loss /(profit) on derivative instruments at fair value through profit or loss(16) 116
(Increase)/decrease in trade and other receivables and prepayments2,335 1,165
(Increase)/decrease in inventories and biological assets13,400 16,184
Increase/(decrease) in trade and other payables1,559 (1,745)
Increase/(decrease) in deferred income2,777 -
Government grants in relation to investing cashflows(1,994)-
Income tax paid(4,224) (580)
Net cash flow (to) / from operating activities10,630 38,458
121
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
32. Revenue from Contracts with Customers
Revenue from contracts with customers is recognised when the control of the goods
has been transferred to customers, being at the point when the goods are delivered.
Delivery of goods is completed (i.e. the performance obligation is fulfilled) when the
goods have been delivered pursuant to the terms of the specific contract agreed
with the customer and the risks associated with ownership have been transferred to
the customer. Revenue is measured according to the contracted price agreed with
customers, which represents expected consideration received or receivable, net of
returns, discounts, and allowances. Revenue is only recognised to the extent that it
Sep 2025Jan 2025
8 months12 months
Revenue by Product group$000$000
Whole fish 56,505 109,542
Fillets, Steaks & Portions 30,607 51,278
Hot Smoked 8,240 13,568
Cold Smoked 17,658 28,727
Petfood 1,177 2,578
Other 3,532 5,300
Total revenue by product group117,719 210,993
Sep 2025Jan 2025
8 months12 months
Revenue by Brand$000$000
Ōra King 36,493 70,385
Regal 28,253 49,748
Southern Ocean 2,354 5,466
Omega Plus 1,177 2,578
New Zealand King Salmon 49,442 82,816
Total revenue by brand 117,719 210,993
BorrowingsLeasesTotal
Liabilities from financing activities$000$000$000
As at 1 February 2024(5,417) (6,900) (12,317)
Financing cash flows912 1,580 2,492
New leases and remeasurements - (5,161) (5,161)
Interest expense(141) (437) (578)
Interest payments (presented as operating cash flows)141 437 578
As at 31 January 2025(4,505) (10,481) (14,986)
Financing cash flows2,505 1,268 3,773
New leases and remeasurements - (339) (339)
Interest expense(79) (337) (416)
Interest payments (presented as operating cash flows)79 337 416
As at 30 September 2025(2,000) (9,552) (11,552)
is highly probable that a significant reversal will not occur. The payment terms vary
depending on the individual contracts. No deemed financing components are present
as there are no significant timing differences between the payment terms and revenue
recognition.
122New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
33. Segment Information
Segment results
The Group is principally engaged in the farming, processing, sale and distribution of
premium salmon products. The Group’s strategy is to maximise the longer term sales
and overall margins of these salmon products by focusing on branded, premium priced
and differentiated products across its range of markets, channels and customers.
The Executive management of the Group is the Chief Operating Decision Maker
(CODM). The Group is a vertically integrated salmon producer (egg to plate) and the
operating results of the whole business are monitored for the purpose of assessing
performance and allocating capital. Accordingly, the Group is considered to consist
of one operating segment.
The Executive management of the Group monitors the operating results of the whole
business. Operating performance is evaluated based on Pro-Forma Operating EBITDA.
Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation
and amortisation, which are then adjusted to remove the fair value impacts of the
application of NZ IAS 41 Agriculture and NZ IAS 2 Inventories.
Refer also Note 32 for detail of disaggregation of revenue by product, brand and
geographical area.
Sales net of settlement discounts to two major customers for the period 1 February
2025 to 30 September 2025 totalled $32m, 27.1% of total net revenue (for the period
1 February 2024 to 31 January 2025 two major customers totalled $51.2m or 24.3% of
total net revenue).
Sep 2025Jan 2025
8 months12 months
Revenue by geographical location of customers$000$000
New Zealand 40,729 67,795
North America 48,347 91,740
Australia 12,121 24,133
Japan 3,397 5,343
Europe 3,293 5,883
China 5,404 4,910
Other 4,428 11,189
Total revenue by geographical location of customers117,719 210,993
123
New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Independent Auditor’s Report
To the shareholders of New Zealand King Salmon Investments Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial
statements) of New Zealand King Salmon Investments Limited (the Company), including
its subsidiaries (the Group), present fairly, in all material respects, the financial position of
the Group as at 30 September 2025, its financial performance, and its cash flows for the
8 month period then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards
Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group’s financial statements comprise:
• the consolidated statement of financial position as at 30 September 2025;
• the consolidated statement of comprehensive income for the 8 month period then
ended;
• the consolidated statement of changes in equity for the 8 month period then ended;
• the consolidated statement of cash flows for the 8 month period then ended; and
• the notes to the financial statements, comprising material accounting policy
information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New
Zealand) (ISAs (NZ)) and International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Independence
We are independent of the Company in accordance with Professional and Ethical
Standard 1 International Code of Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and
Assurance Standards Board and the International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code) issued by the International
Ethics Standards Board for Accountants as applicable to audits of financial statements of
public interest entities. We have also fulfilled our other ethical responsibilities in accordance
with PES 1 and the IESBA Code.
In our capacity as auditor and assurance practitioner, our firm also provides other assurance
services. Our firm carries out other assignments in the areas of other services relating to
treasury advisory. The firm has no other relationship with, or interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
124New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Description of the key audit matterHow our audit addressed the key audit matter
Biological Assets — Existence, Measurement and Valuation
As disclosed in Note 14, the Group holds biological assets comprising
live salmon, with a total biomass of 4,243 metric tonnes and a carrying
value of $80.3 million as at 30 September 2025.
Measured at fair value less cost to sell, in line with NZ IAS 41 Agriculture
and NZ IFRS 13 Fair Value Measurement, the biological assets represent
approximately 33% of the Group’s total assets.
The measurement of the biological asset involves significant judgement
regarding both the biomass measurement at period-end and the fair
value less cost to sell valuation. The biomass is estimated based on the
Group’s livestock growth model which relies on the Group’s established
control procedures for measurement of both number of fish and
biomass, including monitoring estimated harvest volumes within their
growth models against actual harvests.
As per Notes 3 and 14, the Group uses a discounted cash flow model to
estimate the fair value of biological assets. The model is reliant upon a
number of significant inputs and assumptions, including forecast cash
flows associated with the live fish in seawater (forecast sales prices and
estimated remaining production costs), forecast biomass to harvest,
and fish mortality.
Increased uncertainty exists around the biological transformation for
open ocean salmon farming in New Zealand. Therefore, assumptions
around biological transformation at the Blue Endeavour pilot farm have
been amended to reflect a higher level of uncertainty associated with
the biological transformation at this new open ocean pilot site.
We determined this to be a key audit matter due to the significance of
the judgements applied by Directors in measuring the biomass of live
salmon and estimating the fair value of Biological Assets.
We performed the following:
• In relation to the salmon biomass and the valuation thereof, we gained an understanding of the Group’s processes
and controls and assessed the design effectiveness of certain controls associated with the existence, measurement
and monitoring of the live salmon biomass, and the fair value measurement of the biological asset.
• Tested the operating effectiveness of the Group’s controls for:
—recording and counting the number of smolt at the point of transfer from freshwater hatcheries to the
sea farms; and
—monitoring biomass harvest deviations against their estimated biomass within the Group’s livestock
growth model.
• Assessed the inputs into the Group’s livestock model used to estimate growth and biomass by considering the
reasonableness of the feed conversion rate against historic feed conversion rates.
• Considered the historical accuracy of the Group’s actual harvested biomass and estimated biomass from the
Group’s livestock growth model. In addition, we considered harvest deviations occurring after balance date.
• Engaged our valuation expert to independently assess the discounted cash flow methodology.
• Tested the mathematical accuracy of the calculation and agreed key inputs to supporting data such as board
approved budgets and actual biomass measurements.
• Considered whether the key assumptions used by management in the model, including forecast cash flows
associated with the live fish in seawater (derived from forecast sales price and estimated remaining production
costs) and forecast growth and mortality, were reasonable by:
—considering the appropriateness of cash flows included in the model which was limited to those associated
with the live salmon in the sea;
—challenging the reasonableness of these forecasts against historical performance;
—considering the accuracy of historical forecasts;
—assessing the impact of post period-end mortalities on the forecast harvest and mortality assumptions
in the model.
We considered the appropriateness of disclosures in the financial statements including around sensitivities
given the increased uncertainty associated with biological transformation in open ocean farming.
125New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Our audit approach
Description of the key audit matterHow our audit addressed the key audit matter
Inventory — Valuation
As per Note 13, inventories had a carrying value of $21.6 million, net of a
net realisable provision of $1.9 million as at 30 September 2025.
The cost of inventory includes the fair value uplift of salmon, recognised
at the point of harvest of $2.4 million, and other processing costs.
The carrying value of inventory is assessed at balance date to determine
if cost is greater than the net realisable value.
We determined this to be a key audit matter because of the significance
of the judgements involved in estimating the fair value of salmon at the
point of harvest, and in estimating the future sales price to determine
net realisable value
To address the risks associated with inventory valuation, we performed the following procedures:
• Gained an understanding of the inventory valuation processes and assessed the design and implementation of
relevant controls, particularly those over net realisable value adjustments.
• Examined the calculation of the fair value of salmon at the point of harvest along with the direct and processing
costs contributing to the cost of inventory.
• Assessed the Group’s estimation of future sales prices by comparing them against the most recent historical
sales data.
• Validated the carrying value of a sample of inventory items against subsequent sales amounts to confirm the
reasonableness of net realisable values.
We considered the appropriateness of disclosures in the financial statements
Overall group materiality: $1.175 million, which represents approximately 1% of Revenue.
We chose revenue as the benchmark because, in our view, it is a more stable benchmark given
that it is less impacted by any one off items or fair value adjustments during the period. Revenue
is also a commonly used performance measure, and is a generally accepted benchmark.
We performed a full scope audit over the consolidated financial information of the Group.
As reported above, we have two key audit matters, being:
• Biological Assets — Existence, Measurement and Valuation
• Inventory — Valuation
Overview
126New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
As part of designing our audit, we determined materiality and assessed the risks of
material misstatement in the financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant
accounting estimates that involved making assumptions and considering future events
that are inherently uncertain. As in all of our audits, we also addressed the risk of
management override of internal controls, including among other matters, consideration
of whether there was evidence of bias that represented a risk of material misstatement
due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is
designed to obtain reasonable assurance about whether the financial statements are
free from material misstatement. Misstatements may arise due to 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 financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for
materiality, including the overall group materiality for the financial statements as a whole
as set out above. These, together with qualitative considerations, helped us to determine
the scope of our audit, the nature, timing and extent of our audit procedures, and to
evaluate the effect of misstatements, both individually and in the aggregate, on the
financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to
provide an opinion on the financial statements as a whole, taking into account the
structure of the Group, the accounting processes and controls, and the industry in which
the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises
the information included in the Annual Report, but does not include the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be 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 that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair
presentation of the financial statements in accordance with NZ IFRS and IFRS Accounting
Standards, and for such internal control as the Directors determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern, and using the going concern basis of accounting unless the Directors either
intend to liquidate the Group or to cease operations, or have no realistic alternative but
to do so.
127New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Auditor’s responsibilities for the audit of the financial statements
Our objectives are 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 auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs (NZ) and ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and 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 these financial statements.
A further description of our responsibilities for the audit of the financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/
audit-report-1-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has
been undertaken so that we might state those matters which we are required to state to
them in an auditor’s report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Company and the
Company’s shareholders, as a body, for our audit work, for this report, or for the opinions
we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is
Elizabeth Adriana (Adri) Smit.
For and on behalf of:
PricewaterhouseCoopers
Christchurch
27 November 2025
128New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
Glossary
ASX
Australian Securities Exchange
BAP
Best Aquaculture Practices
EBIT
Earnings Before Interest and Tax
EBITDA
Earnings Before Interest, Tax,
Depreciation and Amortisation
Executive
The Executive as disclosed in the
Leadership & Corporate Governance
Section of the latest Annual Report
FCR
Feed Conversion Ratio — the
amount of feed (in kilograms)
required to grow 1 kilogram of
fish weight
FMCG
Fast moving consumer goods
FY
Financial Year
FY25 (Sept)
The 8 month period from 1 February
2025 to 30 September 2025
FY25 (Jan)
The 12 month period from 1
February 2024 to 31 January 2025
FY26
The 12 month period from 1 October
2025 to 30 September 2026
G&G
Gilled and Gutted weight.
Note that all volumetric
information presented is on
a gilled and gutted basis unless
otherwise stated
GAAP
New Zealand Generally Accepted
Accounting Practice
Group
New Zealand King Salmon
Investments Limited and its
subsidiaries
MT
Metric Tonnes
New Zealand King Salmon
New Zealand King Salmon
Investments Limited
N PAT
Net profit after tax, also reported
as net profit for the period in our
published financial results
NZ IAS
New Zealand equivalent to
International Accounting Standards
NZ IFRS
New Zealand equivalents to
International Financial Reporting
Standards
NZX
New Zealand Stock Exchange
Pro-Forma Operating EBITDA
Pro-Forma Operating EBITDA refers
to earnings before interest, tax,
depreciation and amortisation, after
allowing for pro-forma adjustments;
being the exclusion of fair value
adjustments relating to the fair
value gains or losses arising from the
application of NZ IAS 41 Agriculture
and NZ IAS 2 Inventories and the
early foreign currency contract close
outs. Pro-Forma Operating EBITDA is
a non-GAAP profit measure.
129New Zealand King SalmonContentsAnnual Report FY25 (Sept) — Financial Statements
---
FY25 (SEPT) FINANCIAL RESULTS
DISCLAIMER
The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, to the maximum extent permitted by law, neither
New Zealand King Salmon Investments Limited nor any of its directors, employees, shareholders nor any other person shall have any liability whatsoever to any person for any loss (including,
without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it.
This presentation supplements our annual results announcement. It should be read subject to and in conjunction with the additional information in that release, and other material which we have
released to the NZX.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates
and assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplated in any projections and forward-looking statements in this
presentation will be realised and any forward-looking statements are subject to material adverse events, significant one-off expenses or other unforeseeable circumstances. As such, actual results
may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release to you or to provide you with further
information about New Zealand King Salmon Investments Limited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial measures used in
this presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance expense / (income), and taxation expense to net earnings
•EBIT. We calculate EBIT by adding back (or deducting) finance expense / (income), and taxation expense to net earnings
•Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation and amortisation after allowing for pro-forma adjustments as described in the Appendix to this document
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position and returns. They should
not, however, be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP financial measures may not be comparable to similarly titled
amounts reported by other companies.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation constitutes legal,
financial, tax or other advice. An investor should, before making any investment decisions, consider the appropriateness of the information in this presentation, and seek professional advice,
having regard to the investor’s objectives, financial situation and needs.
This presentation is solely for use of the party to whom it is provided.
2
FY25 (SEPT) INVESTOR PRESENTATION
PRESENTERS
Carl Carrington
Chief Executive Officer
Ben Rodgers
Chief Financial Officer
Grant Lovell
GM Aquaculture
3
FY25 (SEPT) INVESTOR PRESENTATION
EXECUTIVE SUMMARY
FY25 (Sept)
•The 8 months to 30 September 2025 (FY25 Sept) result was a net loss after tax of $6.3m (12 months to 31 January 2025 (FY25 Jan) was a net profit of
$13.4m.) The current financial results have been impacted by the change in balance date to 30 September, reducing the reporting period (8 months v 12
months), and a period of challenging biological performance, as subdued feed outs resulted in lower than forecast biomass at sea
•The Pro-Forma EBITDA for the 8 months to 30 September 2025 (FY25 Sept), which is both our preferred performance measure and the profit measure
that NZKS guides to, was a profit of $7.1m (F Y25 Jan profit of $29.7m) impacted predominately by both the reduced reporting period and decreased
harvest noted above. The lost growth over this period once again highlights the high operational leverage in the business which has high fixed and semi
variable costs. As noted, a new summer feed diet, which started being rolled out in November, is expected to support fish performance over the upcoming
summer period
Blue
Endeavourupdate
•Pilot pens have been constructed and are currently moored at our Waihinau site
•The Blue Endeavour (BE) service vessel “Whekenui” has been completed and arrived in NZ in October
•The mooring grid has been delayed due to vessel suitability and weather windows. Expected completion is March 2026
•Design work for RAS pilot (at Tentburn) is underway
•Sustainable Food and Fibre Futures fund (now the Primary Sector Growth Fund), funding partnership with the New Zealand Government provided
~$3.1m to NZK in FY25 (Sept) to support the ‘Future Farming: A Blueprint to Accelerate Salmon Farming in Aotearoa’ Programme
Balance sheet
•Balance Sheet remains strong with net cash on hand ~$46.6m
•Capex spend for the 8 months to 30 September 2025 was ~$12.5m. Capex spend for the period, excluding the BE pilot spend, of $6.4m was focussed on
stay in business capex including replacement nets, moorings, machinery and site works. BE pilot capex $6.1m (includes pens, nets, moorings, service
vessel and commencement of work on the RAS pilot)
FY26 guidance
•Pro-Forma EBITDA guidance range, for FY26 (12 months ended 30 September 2026) is provided at $9 million to $15 million
•Pro-Forma EBIT guidance range, for FY26 is provided at $3m loss to $3m gain
•Expected harvest ~5,500 G&G MT to 5,900 G&G MT
•Capex $28m to $36m
4
FY25 (SEPT) INVESTOR PRESENTATION
FY25 (SEPT) PERFORMANCE
$118
FY25 (SEPT)
REVENUE OF
MILLION
METRIC TONNES HARVESTED
DURING FY25 (SEPT) 8 months
GEOGRAPHIC SPREAD OF REVENUE
NORTH
AMERICA
EUROPE
NEW ZEALAND
AUSTRALIA
JAPAN
CHINA
ASIA EX. CHINA &
JAPAN
41%
3%
5%
4%
10%
34%
3%
6
FY25 (SEPT) INVESTOR PRESENTATION
3,315
FY25(SEPT) OPERATIONAL HIGHLIGHTS
175
167
187
211
118
FY22 FY23 FY24 FY25
(JAN)
FY25
(SEPT)
8 months
(73.2)
1.9
28.5
13.4
(6.3)
FY22 FY23 FY24 FY25
(JAN)
FY25 (SEPT)
8 months
FY25 (SEPT) GAAP NPAT
8.7
(2.7)
24.5
29.7
7.1
FY22 FY23 FY24 FY25
(JAN)
FY25 (SEPT)
8 months
FY25 (SEPT) PRO-FORMA
OPERATING EBITDA
SALES PERFORMANCE
Global Reach and Key Strategic Market focus
North America (MT)
Domestic Market (MT)
Asia (MT)Excludes China
Europe (MT)
Australia (MT)
First half sales
Second half sales (2HY25 (Sept) 2 month period only)
Sales have continued to be limited by supply constraints/available
harvest. The disruption has been most prevalent in Foodservice (fresh
sales), with the impact on Retail being partially mitigated via utilisation of
finished goods on hand.
•North American demand remains strong, however supply
constraints have resulted in a decrease in overall sales
•In New Zealand, the Retail andFoodservice market was downdue
to fresh salmon availability
•The Australian market continues to show strong demand
(exceeding available supply). Consistent with other markets the
Foodservice channel has been constrained with supply challenges
•China demand continues to be strong with more opportunities to
expand distribution when we have supply.
•The European market has remained quite flat in both Foodservice
and Retail at the premium end of the market
•Asia markets (excl. China) declined with the aforementioned
supply challenges
7
FY25 (SEPT) INVESTOR PRESENTATION
China (MT)
1,333
1,156
958
1,016
866
1,417
1,219
1,058
1,109
232
FY22FY23FY24FY25
(Jan)
FY25
(Sept)
1,414
1,086
1,314
1,421
1,098
1,719
1,091
1,176
1,489
250
FY22FY23FY24FY25
(Jan)
FY25
(Sept)
203
258
372
351
295
290
321
321
400
71
FY22FY23FY24FY25
(Jan)
FY25
(Sept)
5
37
71
113
34
30
67
39
FY22FY23FY24FY25
(Jan)
FY25
(Sept)
100
131
81
83
62
132
87
64
71
18
FY22FY23FY24FY25
(Jan)
FY25
(Sept)
575
249
262
236
190
451
234
226
268
26
FY22FY23FY24FY25
(Jan)
FY25
(Sept)
FISH PERFORMANCE
•During 2HY25 (Sept), fish performance has been as expected with both low mortality
and good growth over the late winter and early spring months. In water biomass is
rebounding as forecast, howevermajor volume growth will not occur until FY27.
•Preparations are well under way for this coming summer with earlypredictions
indicating that we are expecting a warmer than average summer.
•Feed prices have declined over the period, which is a positive. The promising
summer diet trial (trialled at theRuakākātrialfacilitylast summer) has been rolled out
across the business from November. This diet displayed significant performance
improvements but does also come with an increased feed cost.
Biological
Performance
FY25 (Sept)
8 months
FY25 (Jan)
12 months% chg.
Harvest Volume (G&G MT)3,3156,778
(51%)
Average Harvest Weight (G&G Kg)
3.273.89(16%)
Feed Conversion Ratio (FCR)
1.991.7315%
Closing Livestock Biomass (MT)
4,2434,879
(13%)
Feed Cost ($ / Kg of feed)
3.163.41(7%)
SoundFarm
Harvested Volume (G&G MT)
FY25 (Sept)
8 months
FY25 (Jan)
12 months
% chg.
Queen Charlotte
Ruakākā
360834
Ōtānerau
619818
Tory Channel
Clay Point
4821,182
Te Pangu1,2502,131
Ngāmahau5901,437
Pelorus Sound
Waitātā
-360
Freshwater
1417
Total3,3156,778(51%)
8
FY25 (SEPT) INVESTOR PRESENTATION
FY22 FY23 FY24 FY25 (Jan) FY25 (Sept)
(8 months)
MT
Seafarm Mortality Biomass (MT)
Key Brand Highlights
Ōra King
•Global media coverage for Ōra King has continued to increase well across all digital platforms
•“Beyond Fresh” was an exciting invite-only evening with Ōra King and Liwei Liao (Dry Aged Fish Guy),
where top influential chefs and decision-makers experienced the magic of dry-aging in Las Vegas, NA
•Ōra King had the privilege to sponsor the inaugural North America’s 50 Best Restaurant Awards.
Held in Las Vegas, this 2 day event brought together the top culinary minds from across USA,
Central America, and Canada. This was an incredibly unique opportunity to network and engage
with these top chefs and culinary directors.
Regal
•Growing the Regal Marlborough King Salmon brand in China continues through both developing
influential retail and foodservice partnerships and sharing our unique New Zealand story with discerning
Chinese consumers
•In NZ retail, Regal converts awareness to consideration at a rate of 77%, meaning consumers who know
about us are highly inclined to consider purchasing our salmon. Regal continues to lead in the salmon
category for both consideration and preference. (Source: Tracksuit – Feb 25 to Sept 25)
Omega Plus
•Partnered with PetStock to build awareness across the Omega product range, with a combined social
and EDM campaign reaching more than 840,000 pet owners, strengthening brand presence in market
and increasing sales by 17% (vs PCP) (Source: Meltwater, Mailchimp)
9
FY25 (SEPT) INVESTOR PRESENTATION
Our brands remain central to creating long-term value, deepening consumer trust, and enhancing
New Zealand King Salmon’s global reputation.
BUILDING BRAND STRENGTH FOR SUSTAINABLE GROWTH
NZKS SUSTAINABILITY FOCUS
•NZKS released its second Climate-Related Disclosures report in May 2025 – noting an improved
carbon intensity measure and Scope 1, 2 and 3 GHG emissions being assured for the first time
•With the proposed changes to the Climate Reporting threshold, NZKS will no longer be a
Climate Reporting Entity. As a result of this change, NZKS will no longer prepare or file
Climate-Related Disclosures. In the current period NZKS has instead release a condensed
‘GHG Statement’, which discloses NZKS’ Scope 1, 2 and 3 GHG emissions, in which limited
assurance has been obtained. Going forward, NZKS intends to prepare a GHG Statement,
disclosing Scope 1,2 and 3 emissions and obtaining a level of assurance over Scope 1 and
2 emissions. NZKS will continue to identify opportunities to improve its carbon intensity as
the business pursues growth opportunities
•Ongoing focus on how to optimise our remaining raw materials (Omega and ensilage plant allows
us to divert organic waste from landfill, and generate better sustainability, social and financial
outcomes)
•NZKS entered into a long-term service contract with Port Marlborough for the storage
logistics of fish feed used across our Marlborough operations. The long-term contract will
see construction of a new warehouse at Westshore. The agreement streamlines NZKS’
supply chain by relocating feed storage to Picton and placing product closer to NZKS’s
farms. This will reduce road freight movements for feed significantly, lowering transport
costs and reducing the associated GHG emissions
WE CONTINUE TO PROGRESS ON OUR SUSTAINABILITY JOURNEY
10
FY25 (SEPT) INVESTOR PRESENTATION
Build of Westshore Warehouse in Picton underway
FY25 (SEPT) RESULTS
FY25 (SEPT) HEADLINE FINANCIAL PERFORMANCE
1
A full reconciliation between GAAP and Pro-Forma results is shown on pages 22 and 23 of this presentation
Revenue – Total revenue was impacted by both the reduced reporting
period (8 months v PCP of 12 months) and a reduction in the available
harvest. The reduced volume was partially offset by an increase in
revenue per kg attributable to both increased prices and a change in
product mix (higher proportion of value-added product sold utilising
finished goods on hand with harvest reductions).
Gross Profit –Gross Profit was negatively impacted by a decrease in
revenue (as noted above), as well as the other flow on impacts from the
reduced harvest. This includes the impact of the reduced harvest on our
COGS due to our high operational leverage (high fixed and semi
variable costs). GAAP Gross Profit was also impacted by the reduced
biomass at sea (impacting the fair value gain/loss on biological
transformation).
EBITDA – In addition to the gross profit explanation above. EBITDA
benefitted from both a reduction in the Short Term Incentive (STI)
accruals and NZK managing costs with the reduced harvest. On a
GAAP basis there was a decrease in other income attributable to a
decrease in the unwind of FX contracts closed out in FY21/FY22 (these
are now fully unwound).
NPAT – Decreased on a GAAP basis from the prior comparable period
as a result of the decrease in EBITDA (explained above), partially offset
by a tax reduction in the tax expense.
12
FY25 (SEPT) INVESTOR PRESENTATION
Group Financial Performance
GAAPPro-Forma
1
FY25 (Sept)FY25 (Jan)FY25 (Sept)FY25 (Jan)
NZ$000s8 months12 months% chg.8 months12 months% chg.
Volume Sold (t)3,260 6,582 (50%)3,260 6,582 (50%)
Revenue117,719 210,993 (44%)117,719 210,993 (44%)
Gross Profit10,237 45,365 (77%)26,053 59,874 (56%)
Gross Profit %9%22%22%28%
EBITDA(3,709)26,384 -7,084 29,729 (76%)
EBITDA %(3%)13%6%14%
EBIT(9,599)18,247 -1,194 21,592 (94%)
NPAT(6,327)13,359 -1,444 15,767 (91%)
FY25 (SEPT) INVESTOR PRESENTATION
•Partial year adjustment (Change in balance date) – As a result of the balance date change, the current period represents eight months of earnings versus the prior comparable period of 12 months.
•Revenue
oVolume – Is down due to a decrease in the available harvest volumes, which was a direct result of the subdued feed outs earlier in the period (reducing biomass at sea). The lower biomass resulted in a decision to reduce
harvest volumes for FY25 (Sept) to rebuild biomass. Pleasingly, biomass at sea is rebuilding as forecasted.
oPrice – The decreased volume impact was partially offset by both price increases and product mix (higher proportion of value-added product sold utilising finished goods on hand with harvest reductions).
•Cost of goods
oVolume – COGS reduced due to a decrease in available biomass, harvest volumes were down ~1,100MT or 25% (on a like for like basis).
oOperational Leverage – As commented in previous presentations, NZK has high operational leverage (high fixed and semi variable costs impacting COGS), future initiatives to grow volumes are crucial to unlock this
challenge.
•Mortality increased on the prior comparable period (PCP). Mortality represents both an expense (costs that won’t be recovered from investments in biological assets) and also an opportunity cost as lost margin and flow on
impacts to operational leverage.
•Corporate costs – are favourable to the PCP predominately due to both a reduction in the Short Term Incentive (STI) accruals and NZKS managing costs with the reduced harvest. This is not expected to repeat, with
corporate costs anticipated to increase, as NZKS continue to increase investment in capability to support the delivery of growth initiatives.
1
Refer to pages 21 & 22 for full reconciliation between GAAP and Pro-Forma results
13
PRO-FORMA
1
EBITDA COMPARISON
(9.1)
(31.5)
11.5
19.8
(14.0)
(1.6)
2.9
(0.6)
29.7
7.1
FY25 (JAN)
Part Year
Adjustment
Sales Volumes
Price/Customer/
Product Mix
COGS - Volume
COGS Inflation
Mortality
Corporate Costs
Other Income
FY25 (SEPT)
PRO-FORMA EBITDA FY25 (JAN) to FY25 (SEPT)
BALANCE SHEET
NZKS has been rebuilding the biological assets in FY25 (Sept) following the subdued feed outs in the 24/25
summer period. This resulted in lower harvest biomass available for sale for the period ended 30 September 2025.
Pleasingly, the action taken to reduce harvest has seen biomass continue to rebuild. Closing biomass live weight
now sits at 4,243 MT which is up from the 3,679 MT reported at our interim results.
The increase in biomass from the interim results see some of the fair value reduction recognised in our biological
assets reverse ($31m loss pre tax in the 6 months to 31 July 2025 reduces to $11m for the 8 months to 30
September 2025) consistent with biomass on hand increasing 15% since 31 July 2025 (3.7k MT at 31 July 2025 to
4.2k MT at 30 September 2025). Biomass is rebuilding as expected but remains 13% below the 31 January 2025
balance, should biomass volumes continue to recover as forecast, improvements to the fair value gain is expected.
Outside of the biological asset story, working capital management has remained disciplined, in the context of
reduced earnings associated with the reduction in harvest.
•Inventories on hand reduced from $27.1m to $21.6m, attributable to both a decrease in Finished Goods and
feed on hand. Although finished goods has decreased from 31 January, it has increased from our interim
results due to the return of some frozen product. Feed on hand varies with the timing of delivery as opposed
to any structural changes.
•Other current liabilities have decreased due to the fair value movement of FX instruments and reduction in
tax payable (decline in profitability)
•Net Cash on hand decreased to $46.6m (this includes ~$2.2m of funding received from the SFF Futures
fund partnership) attributable to a decline in profitability (reduction in harvest), investments in PP&E (refer
below) and rebuild in biomass, partly offset by a reduction in working capital (non biological assets).
NZKS invested ~$12.5m in capex for FY25 (Sept). Major capex projects included spend of $6.1m associated with
the Blue Endeavour pilot projects (including pens, nets, moorings, service vessel and commencement of work on
RAS pilot). Non Blue Endeavour pilot spend of $6.4m, focused on stay in business capex including replacement
nets, moorings, machinery and site works. As previously communicated NZKS purchased a commercial site in
Cloudy Bay Business Park in Blenheim for $8.1m with a lens to future processing requirements (settlement
occurred 7 October 2025 – and therefore will be recognised in FY26).
1
Cash and equivalents include $3m term deposits with maturities > 4 months (31 Jan 25: $3m)
14
FY25 (SEPT) INVESTOR PRESENTATION
Group Financial Position
Sept 25Jan 2025
NZ$000sAuditedAudited
Current Assets
Cash and equivalents
1
48,629 52,738
Receivables14,927 17,262
Taxation Receivable269 -
Inventories21,629 27,190
Biological Assets80,306 88,145
Derivative financial assets1,817 1,016
167,577 186,351
Non-current Assets
Property, plant & equipment60,589 52,427
Other13,103 13,418
73,692 65,845
Total Assets241,269 252,196
Current Liabilities
Loans (external)2,000 4,505
Lease Liabilities1,725 1,834
Payables15,444 13,456
Other7,386 16,757
26,555 36,552
Non-Current Liabilities
Deferred income2,777 -
Lease Liabilities7,827 8,647
Other6,772 9,966
17,376 18,613
Total Liabilities43,931 55,165
Net Assets197,338 197,031
Net Cash /(Debt)46,629 50,738
FROM SURVIVING TO THRIVING
FY26 GUIDANCE UPDATE
As NZKS move through some significant capital investments, guidance on a go forward basis, will be provided as Pro-Forma EBIT. As part of this transition Pro-Forma EBITDA is
also provided for FY26. The Board provides FY26 guidance on the following metrics:
•Pro-Forma EBIT with a range of ($3m) to $3m
•Pro-Forma EBITDA with a range of $9 to $15m
•Harvest G&G volume with a range of 5,500 MT to 5,900 MT
•Capex with a range of $28m to $36m Forecast capex includes:
oBlue Endeavour Pilot Project ~$9.2m (includes moorings, service vessel and commencement of work on RAS pilot)
oCloudy Bay acquisition, remediation and design work ($9.6m)
oStay in business Capex of ~$7m (replacement nets, moorings, machinery and site works)
•The Board has reconfirmedthatdividends will remainon hold for the foreseeablefuture as NZKS develops theBlue Endeavour project
FY26 guidance is a result of:
•Harvest: Biomass continues to be rebuilt following the growth challenges over the first half of 2025. With the change in balance date to September, there is some impact
now which flows into FY26 (absent the change in balance date we would have provided a harvest guidance range of 6,000 G&G MT to 6,400 G&G MT), which once again
highlights the high operational leverage in the business.
•NZKS is currently in commercial discussions to secure a wellboat. The wellboat is seen as a key operational asset to improve farming and fish health outcomes,
operationalise the BE site and unlock underutilised feed discharge at our inshore farms. Should the lease of a wellboat be secured, NZKS estimate the following harvest
volumes for FY27 & FY28:
oFY27: ~7,200 G&G MT to ~7,600 G&G MT
oFY28: ~8,200 G&G MT to ~8,800 G&G MT
16
FY25 (SEPT) INVESTOR PRESENTATION
DOUBLING DOWN ON THE CORE
Despite the supply disruptions, which have impacted both the FY25 (Sept) results and FY26 guidance, optimism remains around the
long term growth opportunities for NZKS. Our direction of travel has not changed.Rather, the emphasis on certain initiatives
hasincreased, sequencing is shifting in response to new circumstances, and certain investments are accelerating.
Doubling down on the core represents a focus on investments that will provide near term returns and provide a solid platform for
future growth. These include:
17
FY25 (SEPT) INVESTOR PRESENTATION
Ruakākā trial pens
Our Tentburn hatchery facility where our pilot RAS will be
located
1. Additional feed discharge still needs to be in line with the environmental conditions of the consents
ActionWhyStatus
Aquaculture
Blue Endeavour PilotPilot open ocean technology with the
intention to scale/commercialise the Blue
Endeavor site and increase annual harvest
volumes by up to 10,000 Mt
Ongoing – Mooring Grid delay -e stimated completion
time March 2026. Fish expected at BE site in April 2026,
with harvest expected to commence in approximately
October 2026
New high flow consents
(Clay Point, Te Pangu, and
Ngāmahau in Tory Channel,
Waitātā and Kopāua in Pelorus
Sound)
These new consents consolidate and simplify
conditions to support effective and efficient
monitoring and management of the farms.
Benefits include the removal of feed
discharge staging which provides NZKS
earlier access to3,000MT of potentially
usable feed discharge
1
Completed
Implementing a summer feed
diet
Improved performance by improving fish
health/welfare and maintaining feed outs
Completed
Breeding for resilience/
thermotolerance:
Improve fish health/welfareOngoing – first stock spawned December 2025 that have
this trait included in selection
Vaccine development: We
arecontinuing ourvaccine
developmentin collaboration
with key partners
Improve fish health/welfareVaccine trials at Cawthron in Nelson are underway, and
applications for new vaccine imports progressing
TherapeutantsImprove fish health/welfareCompleted - NZKS is both consented to use and has
therapeutants ready to be administered at 6 of our 8
active marine sites if required
(Blue Endeavour and Otanerau are not consented)
DOUBLING DOWN ON THE CORE – CONT.
18
FY25 (SEPT) INVESTOR PRESENTATION
An example of the type of wellboat we are looking to lease
Regal Brand in China
ActionWhyStatus
Aquaculture - continued
Pilot RASReduce failed smoltification (runting),
increase freshwater capacity and improve
biological performance
Ongoing – Design work underway with construction
planned to commence in 2026
Lease of a wellboat
Unlock underutilised inshore feed discharge.
Improve fish health/welfare including
fallowing of sites, grading of fish,
implementation of single-year class and
eliminates manual towing risk.
Ongoing – NZKS is in commercial negotiations for the
lease of a wellboat
Processing
Acquire new processing site
option
The current Nelson processing factory is
restricted to processing harvest volumes of
9,000 MT – 10,000 MT. A new processing
site will be required for growth initiatives.
Completed
Design new primary processing
site
Design a new site to process future whole
fish & filleting requirements
Ongoing – Project Manager hired and detail design work
underway
Sales
Investment into the Regal brand
in the China market.
Invest in the brands to grow awareness and
demand for our salmon in advance of
planned supply growth.
Ongoing
Corporate
Grow capabilityTo derisk execution on the growth
opportunities new investments in capability
are required.
Ongoing – New GM supply chain, Head of PMO, IT
transformation lead, Head of logistics recently hired
BLUE ENDEAVOUR- PILOT UPDATE
19
FY25 (SEPT) INVESTOR PRESENTATION
Two pilot pens at Waihinau - to be towed to Blue
Endeavour site in the coming months
Blue Endeavour mooring grid work underway
Blue Endeavour service vessel – ‘Whekenui’
arrived from Vietnam via lift ship in October
•Mooring grid – The installation of the mooring grid has proved more challenging then anticipated due to vessel
limitations and weather windows. To relocate the pilot pens from Waihinau to the BE site we need to install a minimum of
36 anchors. As at 25 November 2025, 12 anchors have been installed. We anticipate the remaining anchors to be
installed and the mooring grid completed in March 2026.
•The delay in the installation of the mooring grid will result in the originally designated pilot fish being grown at Waihinau
no longer being transferred to the BE site. Instead these fish will be grown out at Waihinau. The revised plan, should
NZKS successfully conclude negotiations for a wellboat, will be to transfer fish from Te Pangu to the BE site in April 2026.
The intention would be to harvest these fish in Q1 FY27 (October to December 2026).
APPENDICES
HIGH FLOW CONSENT CONDITIONS REVIEWED AND RENEWED
FarmsRegion
Expiry
date
Status
Feed
Staging
Change *1
RuakākāQueen Charlotte2044ActiveNo Change
ŌtānerauQueen Charlotte2044
Active
No Change
Forsyth BayPelorus2044FallowNo Change
WaihinauPelorus2044ActiveNo Change
Crail BayPelorus2044FallowNo Change
Clay PointTory Channel2050
Active+1,500MT
Te PanguTory Channel2050
Active+500MT
WaitātāPelorus2050
Active+2,000MT
NgāmahauTory Channel2050
Active+1,500MT
Kopāua
Pelorus2050Fallow
+2,500MT
Blue Endeavour
Cook Strait2057ActiveNo Change
NZKS have successfully received new high flow consents. The sites affected are Clay
Point, Te Pangu, and Ngāmahau in Kura Te Au/Tory Channel, and Waitātā and Kopāua
in Te Hoiere/Pelorus Sound. These new consents consolidate and simplify conditions to
support effective and efficient monitoring and management of the farms. Key Benefits to
NZKS include:
•The removal of feed discharge staging has provided NZKS earlier access to3,000MT
of potentially usable feed discharge at Ngāmahau and Clay Point. There was also an
increase in feed discharge at Waitātā (2000MT) andKopāua (2500MT) but given the
current farming windows or site-specific environmental constraints,this is currently
unable to be utilised
•Consent wording has been changed so that other discharges associated with ethical
farming practices are allowed, provided all other legal requirements are met. This
allows farms to usetherapeutants under veterinary supervision
•Benthic Monitoring now aligns with the Best Management Practices - Benthic. This
enables the use of eDNA as a monitoring tool which will provide a more cost effective
and efficient way to assess the capacity and function of the benthic community
•Removal of benthic / water quality monitoring requirements for fallowed farms
•Other reduced monitoring conditions (reefs, King Shag populations) due to there
being no evidence farms are having an impact in these areas.
1. Additional feed discharge still needs to be in line with the environmental conditions of the consents.NZK already
operates many farms under consented levelstomaintainconsent/environmental compliance
21
FY25 (SEPT) INVESTOR PRESENTATION
FY25 (SEPT)
1
RECONCILIATION BETWEEN GAAP AND PRO-
FORMA FINANCIALS
22
FY25 (SEPT) INVESTOR PRESENTATION
NZD 000s
Statutory Financial
Statements
Depreciation
Fair Value
Adjustments
Early FX Close-
outs
Pro-Forma
Operating Financial
Information
Revenue117,719 117,719
Cost of goods sold(117,570)4,618 21,286 (91,666)
Fair value gain / (loss) on biological transformation10,088 (10,088)-
Gross Profit10,237 4,618 11,198 - 26,053
Other operating income981 (405)576
Overheads
Selling and distribution expenses(10,717)446 (10,271)
Corporate expenses(8,642)826 (7,816)
Other expenses(1,458)(1,458)
Add: Depreciation5,890 (5,890)-
EBITDA(3,709)- 11,198 (405)7,084
Deduct Depreciation and amortisation(5,890)(5,890)
EBIT(9,599)- 11,198 (405)1,194
Finance income1,057 1,057
Finance costs(442)(442)
Net finance costs615 - - - 615
Profit /(loss) before Tax(8,984)- 11,198 (405)1,809
Income tax (expense) / credit2,657 - (3,136)113 (365)
Net Profit /(loss) for the Year(6,327)- 8,062 (292)1,444
1
for the 8 months from 1 February 2025 to 30 September 2025
23
FY25 (SEPT) INVESTOR PRESENTATION
FY25 (JAN) RECONCILIATION BETWEEN GAAP AND PRO-
FORMA FINANCIALS
NZD 000s
Statutory Financial
Statements
Depreciation
Fair Value
Adjustments
Early FX Close-
outs
Pro-Forma
Operating Financial
Information
Revenue210,993 210,993
Cost of goods sold(193,039)6,834 35,086 (151,119)
Fair value gain / (loss) on biological transformation27,411 (27,411)-
Gross Profit45,365 6,834 7,675 - 59,874
Other operating income5,475 (4,330)1,145
Overheads
Selling and distribution expenses(16,814)152 (16,662)
Corporate expenses(13,796)1,151 (12,645)
Other expenses(1,983)(1,983)
Add: Depreciation8,137 (8,137)-
EBITDA26,384 - 7,675 (4,330)29,729
Deduct Depreciation and amortisation(8,137)(8,137)
EBIT18,247 - 7,675 (4,330)21,592
Finance income1,466 1,466
Finance costs(619)(619)
Net finance costs847 - - 847
Profit / (loss) before Tax19,094 - 7,675 (4,330)22,439
Income tax (expense) / credit(5,735)(2,149)1,212 (6,672)
Net Profit / (loss) for the Year13,359 - 5,526 (3,118)15,767
APPENDIX – GLOSSARY OF TERMS
FY27Financial results for the 12 months from 1 October 2026 to 30 September 2027
FY26Financial results for the 12 months from 1 October 2025 to 30 September 2026
FY25 (SEPT)Financial results for the 8 months from 1 February 2025 to 30 September 2025
FY25 (JAN)Financial results for the 12 months from 1 February 2024 to 31 January 2025
FY24Financial results for the 12 months from 1 February 2023 to 31 January 2024
FY23Financial results for the 12 months from 1 February 2022 to 31 January 2023
FY22Financial results for the 12 months from 1 February 2021 to 31 January 2022
1HY25 (SEPT)Financial results for the 6 months from 1 February 2025 to 31 July 2025
1HY25 (JAN)Financial results for the 6 months from 1 February 2024 to 31 July 2024
1HY24Financial results for the 6 months from 1 February 2023 to 31 July 2023
1HY23Financial results for the 6 months from 1 February 2022 to 31 July 2022
1HY22Financial results for the 6 months from 1 February 2022 to 31 July 2021
EBITDAEarnings before interest, tax, depreciation and amortisation
FCRFeed Conversion Ratio – the amount of feed (in kilograms) required to grow 1 kilogram of fish weight
G&GGilled and gutted. Note that all volumetric information presented is on a gilled and gutted basis unless otherwise stated
GAAPGenerally Accepted Accounting Practice
MTMetric tonnes
NPATNet profit after tax, also reported as net profit for the period in our published financial results
NZKSNew Zealand King Salmon Investments Limited
Pro-Forma Operating EBITDA
Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation, amortisation after allowing for pro-forma adjustments as described in the Appendix to
thisdocument. Pro-Forma Operating EBITDA is a non-GAAP profit measure that NZKS provides market guidance against
RASRecirculating Aquaculture System
24
FY25 (SEPT) INVESTOR PRESENTATION
UNDERSTANDING OUR GAAP RESULTS
Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation and amortisation, after allowing for Pro-Forma adjustments; being the exclusion
of fair value adjustments relating to the fair value gains or losses arising from the application of NZ IAS 41 Agriculture and NZ IAS 2 Inventories and the early
foreign currency contract close outs.
Pro-Forma Operating EBIT refers to earnings before interest and tax, after allowing for Pro-Forma adjustments; being the exclusion of fair value adjustments
relating to the fair value gains or losses arising from the application of NZ IAS 41 Agriculture and NZ IAS 2 Inventories and the early foreign currency contract
close outs.
The impact of NZ IAS 41 Agriculture and NZ IAS 2 Inventories
Our GAAP results are impacted by fair value gains or losses arising from the application of NZ IAS 41 Agriculture and NZ IAS 2 Inventories. The impact of these
standards are explained below:
Fair Value under NZ IAS 41 Agriculture and NZ IAS 2 Inventory
When we record a change in biomass at sea, or where the expected future profit we realise on fish that we sell changes, these standards require us to quantify
and recognise the gain or loss in the current period. This applies to both biomass at sea and inventories of finished products.
Our Statement of Financial Position shows biological assets at their fair value. Pro-Forma Operating Financial Performance removes gains / losses associated
with the application of these standards.
25
FY25 (SEPT) INVESTOR PRESENTATION
---
FOR THE PERIOD ENDED
30 SEPTEMBER 2025
GHG Statement
GHG Statement
New Zealand King Salmon Investments
Limited (NZKS) presents its GHG Statement
(‘Statement’), which supports the Scope 1,
2 and 3 absolute Greenhouse Gas (GHG)
emissions disclosed in NZKS’ Annual Report
for the period ended 30 September 2025.
The Scope 1, 2 and 3 GHG emissions have been prepared in
accordance with the recognition and measurement criteria
as described in the basis of preparation below, which are
based on the ‘Greenhouse Gas Protocol — A Corporate
Accounting and Reporting Standard’ and ‘Corporate Value
Chain (Scope 3) Accounting and Reporting Standard’.
NZKS has engaged PricewaterhouseCoopers (PwC) to
perform a limited assurance engagement over the Scope 1,
2 and 3 greenhouse gas emissions. The assurance report can
be found on pages 12 to 15 of this Statement.
2
New Zealand King SalmonGHG Statement FY25 (Sept)
1, 2 and 3. Going forward, from the next reporting period,
a level of assurance will be obtained for Scope 1 and 2 only)
• Maintain a proactive approach to identifying and
addressing climate-related risks via our enterprise level
risk register
• Continue to have a sustainability lens across large projects,
to ensure we are understanding our footprint but also areas
where we can reduce our impact
GHG Emissions
During the period, NZKS changed its reporting period end to
30 September which resulted in a shorter period of emissions
reporting than the comparative period. NZKS’ absolute GHG
emissions and GHG emission intensities for the 8-month
period ended 30 September 2025 (FY25 (Sept)) compared to
the 12-month period ended 31 January 2025 (FY25 (Jan)) are
disclosed in the tables below. The emissions are the total GHG
emissions prepared in accordance with the recognition and
measurement criteria as described in the basis of preparation
below, which are based on the Greenhouse Gas Protocol
guidance. Methodologies, assumptions, and estimation
uncertainties in preparing the GHG emissions are set out in
the Appendix. Scope 1, Scope 2 and Scope 3 GHG emissions
for both reporting periods were subject to limited assurance
by PwC. Refer to the PwC assurance report on page 12 to 15
for further details.
In October 2025, it was announced that as part of the
Financial Markets Conduct Amendment Bill the climate
reporting threshold for listed issuers was proposed to lift from
the current market capitalisation threshold of $60 million to
$1 billion. This is expected to be in effect in 2026. In response
to this announcement the Financial Markets Authority (FMA)
has decided to provide interim relief in the form of taking a
‘no action’ approach to the 2025/2026 reporting period for
affected entities who are expecting their climate reporting
obligations to cease once legislation is passed.
Based on NZKS’ current market capitalisation being ~$110
million, NZKS will no longer be a Climate Reporting Entity
(CRE) and as such the Board has determined that NZKS
will no longer prepare Climate-Related Disclosures (CRD),
with effect from the current reporting period. Despite not
releasing a separate CRD report for the current period, NZKS
acknowledge that as a primary sector organisation, we are
reliant on the natural environment, and climate change can
significantly influence NZKS’ trajectory. In acknowledging
our ongoing commitment to sustainability, NZKS intend to:
• Continue to capture our Scope 1, 2, and 3 carbon
emissions and voluntarily report them in a
GHG Statement
• Voluntarily obtain a level of assurance over Scope 1 and 2
emissions reported in a GHG Statement. (Noting in the
current period, limited assurance was obtained for Scope
3
New Zealand King SalmonGHG Statement FY25 (Sept)
Intensity
indicators
FY25 (Sept) —
Liveweight
(tCO2e/t)
FY25 (Jan) —
Liveweight
(tCO2e/t)
Yo Y %
(decrease)/
increase
FY25 (Sept) —
G&G (tCO2e/t)
FY25 (Jan) —
G&G
(tCO2e/t)
Yo Y %
(decrease)/
increase
Scope 1, 2 & 3
emissions per
tonne (tCO2e/
tonne)
12.32 11.03 12%14.00 12.53 12%
Scope 1 & 2
emissions per
tonne (tCO2e/
tonne)
0.56 0.38 46%0.63 0.43 46%
GHG emissions intensity
The current period absolute emissions have been impacted
by the change in balance date, resulting in 8-months of GHG
emissions, compared to 12 months in the previous reporting
period (FY25 (Jan)). The reduced harvest volumes driven
by the decision to slow harvest to allow for biomass rebuild,
after a period of slower growth, has subsequently impacted
the greenhouse gas intensity metrics for the period. The fixed
level of emissions related to business-as-usual activities,
including the rebuilding of biomass has still been incurred but
is now spread over a smaller harvest volume. The reduced
harvest has also impacted the scope allocation across total
emissions. The reduction in Scope 3 (primarily airfreight and
fish feed emissions) as a percentage of overall emissions,
aligns with the reduced sales and livestock harvested over
the period.
Scope
FY25 (Sept)
(8 months) tCO2e
% of total emissions
FY25 (Sept)
FY25 (Jan)
(12 months) tCO2e
% of total emissions
FY25 (Jan)
Scope 11,618 3.5%2,4082.84%
Scope 2484 1.0%5280.62%
Total Scope 1 and 22,102 4.5%2,936 3.46%
Scope 344,31295.5%81,99996.54%
Total Scope 1, 2 and 346,414100%84,935100%
Absolute GHG emissions by Scope
4
New Zealand King SalmonGHG Statement FY25 (Sept)
The following disclosures are subject
to assurance:
Basis of preparation
NZKS prepares its GHG emissions in accordance with the
requirements of the ‘Greenhouse Gas Protocol — A Corporate
Accounting and Reporting Standard’ and ‘Corporate Value
Chain (Scope 3) Accounting and Reporting Standard’, other
than:
• Emissions from operating leases over which there is a
right-of-use are determined to be under control of NZKS
and within the operational boundary, so are presented
in Scopes 1 and 2, rather than Scope 3, as described in
further detail in NZKS boundary below
• NZKS does not present all the disclosure requirements
of the GHG Protocol reporting standards.
For these reasons, this GHG Statement cannot be considered
compliant with all aspects of the GHG Protocol standards.
As reporting of climate-related metrics is an emerging area,
often the data and methodologies used are developing and
uncertain. NZKS reports its GHG emissions in tonnes of CO2
equivalents (tCO2 e). There has also been guidance from
the following sources:
• Greenhouse Gas Protocol — Technical Guidance for
Calculating Scope 3 Emissions (version 1.0)
Emission factors utilised in the 8 month period ended
30 September 2025 have been from the following sources:
• Ministry for the Environment (MfE) 2025 ‘Measuring
Emissions: A guide for organisations’ (NZ)
• Department for Environment Food & Rural Affairs (DEFRA)
2025 ‘Greenhouse gas reporting: conversion factors’ (UK)
• Department of Climate Change, Energy, the
Environment and Water (DCCEEW) — Hydrofluorocarbon
refrigerants — global warming potential values and safety
classifications (Australia, 2025)
• Environmental Product Declaration (EPD) product
specific emission factors for similar items to products
purchased (2023)
• Motu Economic and Public Policy Research ‘Consumption-
based greenhouse gas emissions inputoutput model’ (2007)
• Supplier specific emission factors for feed (2023, 2024
& 2025)
The emission factor sources are based on global warming
potentials (GWPs) varying from AR2-AR6.
5
New Zealand King SalmonGHG Statement FY25 (Sept)
NZKS boundary
NZKS applies the financial control approach when
calculating emissions. Determination of control follows the
same approach taken when consolidating New Zealand
King Salmon Investments Limited for financial statement
purposes. Organisational boundaries were applied with
reference to the methodology described by the GHG
Protocol. NZKS has financial control over all the entities
that comprise New Zealand King Salmon Investments
Limited Group. Emissions in NZKS control are Scope 1
and Scope 2 emissions and are identified from across the
entire NZKS operations — hatcheries, sea farms, processing
operations, distribution and office areas.
The current GHG Protocol guidance suggests leases that
have the characteristics of operating leases are reported as
Scope 3, ‘Category 8: Upstream leased assets’ for reporting
entities with a financial control approach. However,
consistent with the principles of NZ IFRS 16 Leases, NZKS
recognises lease assets in the statement of financial
position as a right of use asset and has determined that,
during the lease period, NZKS has the right to control the
use of the asset as well as the right to substantially all of
the related economic benefits and therefore have included
the related emissions in Scopes 1 and 2. Emissions from
sources over which NZKS does not have financial control,
but forms part of the NZKS value chain, are included as
Scope 3 indirect emissions.
Emissions sources excluded
The basis for exclusion of emissions from NZKS GHG
emissions calculations in FY25 are either that they are:
• Not applicable to NZKS operations, or
• Not material in the context of the GHG inventory (not
greater than 5% of a particular scope of emissions), or
• Not technically feasible or cost effective to be
quantified with accuracy at present
Estimates and assumptions were applied in situations
where there was a lack of available data.
The below outlines the categories excluded and the
reasoning for this:
• Category 7 — Employee commuting: Information is
not tracked, estimated impact is immaterial to overall
emissions based on estimates.
• Category 10 — Processing of sold products: Partial
exclusion. Emissions from processing of sold offal into
fish meal are included in Category 10. Emissions from
all other types of further processing are excluded,
due to the unknown nature of these processes and
insufficient data, or the volumes being deemed
insignificant. Data quality challenges mean that the
uncertainty associated with this estimation is high.
• Category 11 — Consumer use of sold product: As
no specific data is available, we have estimated
emissions based on assumed cooking techniques and
sold weights, however at present the emissions are
immaterial, and the uncertainty associated with this
estimation is high.
• Category 13 — Downstream leased assets: No specific
data available and NZKS does not lease out any
significant assets. Therefore, the estimated impact is
immaterial.
• Category 14 — Franchises: Not applicable due to no
franchised business.
• Category 15 — Investments: Not applicable.
6
New Zealand King SalmonGHG Statement FY25 (Sept)
Disclaimer
NZKS has used reasonable efforts in the preparation of
this GHG Statement to provide accurate information, but
cautions reliance being placed on representations that
are necessarily subject to significant risks, uncertainties
or assumptions. This report contains forward looking
statements, including statements of NZKS’ future intentions
that may not evolve as predicted. Climate-related reporting
of metrics is an emerging area and often uses data and
methodologies that are developing and uncertain. Climate-
related forward-looking statements may therefore be less
reliable than other statements NZKS may make in its annual
reporting. We have based these statements on our current
knowledge as of November 2025. There are many factors
that could cause NZKS’ actual results, performance or
achievement of climate-related metrics to differ materially
from that described, including economic and technological
viability, as well as climatic, government, consumer, and
market factors outside of NZKS’ control. Nothing in this
report should be interpreted as capital growth, earnings or
any other legal, financial, tax or other advice or guidance.
7
New Zealand King SalmonGHG Statement FY25 (Sept)
Scope Category
GHG emissions
source
Data sourceCalculation methodology, assumptions, uncertainty (qualitative)
Source of
emission factors
Scope 1 Stationary
/ mobile
combustion
Fossil fuels used
across business
Supplier data Fuel-based method. Low uncertainty.
MfE (2025)
Fugitive
emissions
Refrigerant
used in
refrigeration
systems
Maintenance
records
Top-up method. Considers top-ups on equipment (including leased assets) on NZKS sites. Low uncertainty.
MfE (2025),
DCCEEW (2025)
Scope 2 Electricity Electricity
consumption
Supplier data Location-based method. Low uncertainty. Picton usage estimated based on percentage of lease outgoings applied to
activity data (~7% of scope 2).
MfE (2025)
Scope 3Category 1:
Purchased
goods and
services
FeedEmission factors
provided by
supplier. General
ledger used for
quantities.
Supplier-specific method. High uncertainty.
Supplier-specific feed emission factors reflect specific cradle-to-gate emissions and are specific to the feed composition
purchased by NZKS. The emission factors are developed by feed suppliers and based on their life cycle assessments. NZKS
have a lesser degree of knowledge and influence on suppliers’ data source quality and collection processes. NZKS rely on
suppliers’ methodologies which include complex models, assumptions, estimations. These data challenges contribute to
higher uncertainty. In preparing the Life Cycle Assessment (LCA), suppliers use internationally recognised standards and
relevant product environmental footprint category rules. In applying the standards, suppliers use primary and secondary data
sources, including databases, to prepare the calculations. Adjustments are made relevant to the circumstances of NZKS i.e.
feed origin and composition specific to NZKS feed, geographic validity and transport distances to NZKS sites. Suppliers apply
technical expertise in selecting critical methods, estimates, assumptions and judgements in preparing the LCA models,
such as the assessment of Life Cycle stages and climate change impacts, the allocation method (economic allocation)
and selection of GWPs.
Emissions factors are updated on an annual basis and due to changes in estimates and assumptions in the calculation,
this could lead to significant variation in Scope 3 emissions between feed suppliers and over time.
Feed suppliers
(2024 & 2025)
Appendix: GHG methodologies, assumptions, and estimation uncertainties
GHG emission quantification is inherently uncertain because of incomplete scientific knowledge used to
determine emission factors and the values needed to combine emissions of different gases.
8
New Zealand King SalmonGHG Statement FY25 (Sept)
Scope Category GHG emissions source Data sourceCalculation methodology, assumptions, uncertainty (qualitative)
Source of
emission factors
Scope 3PackagingGeneral ledgerAverage-data method. Purchases based on general ledger reports. Low uncertainty.DEFRA (2025)
Purchased salmon and
petfood ingredients
General ledgerAverage-data method. Purchases and third-party manufacturing based on general ledger
reports. Medium uncertainty due to generic nature of emission factors, due to unavailability of
relevant emission factors. In relation to purchased petfood inputs, a generic food emission factor
has been used.
Similar products
environmental
product disclosure
(EPD, 2023) and
DEFRA (2025)
for third party
manufacturing.
All other consumables,
raw materials and other
expenditure
General ledgerSpend-based method. High uncertainty as emission factors are applied to a broad category
of spend and not based on specific activity data or supplier specific emission factors.
Motu (2007), with
annual inflation
applied
Category 2:
Capital goods
Purchase or construction
of capital items
General ledger Spend-based method, emissions recognised when asset capitalised in general ledger. High
uncertainty as emission factors are applied to a broad category of spend and not based on
specific activity data or supplier specific emission factors.
Motu (2007), with
annual inflation
applied
Category 3:
Fuel-and energy-
related activities
not included in
Scope 1 or Scope 2
Electricity transmission and
distribution losses (T&D)
Supplier dataAverage-data method. Emissions from T&D losses are estimated based on scope 2 data.
Low uncertainty.
MfE (2025)
Electricity and fuel well-to-
tank (WTT)
Supplier dataAverage-data method. Emissions from WTT losses are estimated based on scope 1 & 2 data.
Low uncertainty.
DEFRA (2025)
9
New Zealand King SalmonGHG Statement FY25 (Sept)
Scope Category GHG emissions source Data sourceCalculation methodology, assumptions, uncertainty (qualitative)
Source of emission
factors
Scope 3Category 4:
Upstream transport
and distribution
• Transport of items between
internal locations by third
parties (road and sea
transport)
• Transport of finished goods
to consumer (air, road and
sea transport
Supplier dataFuel-based method. Low uncertainty.
Distance-based method. Medium uncertainty as all distances were estimated, assuming direct
routes between origin and destination location for all modes of transport. Distance information
was sourced from a generic internet search. In addition, mass data, was estimated where not
provided by suppliers (road freight).
MfE (2025), DEFRA
(2025)
Transport of feed (sea)Supplier dataSupplier-specific method. Suppliers provide freight emission factor, multiplied with quantities
purchased from general ledger. Low uncertainty.
Feed suppliers
(2025)
• Transport of packaging
(air, road and sea)
• Transport of purchased
salmon (sea)
General ledger
data with distance
assumptions based
on supplier location
Distance-based method. Medium uncertainty as all distances were estimated, assuming direct
routes between origin and destination location for all modes of transport. Distance information
was sourced from a generic internet search. In addition, mass data, was estimated from internal
accounting system.
DEFRA (2025),
MfE (2025)
Transport of all other goods
purchased
General ledgerSpend-based method for freight paid on all remaining purchased goods that have not been
identified separately above. High uncertainty as emission factors are applied to a broad category
of spend and not based on specific activity data or supplier specific emission factors.
Motu (2007), with
annual inflation
applied
Category 5:
Waste generated
in operations
Waste — landfillSupplier dataAverage-data method. Low uncertainty.MfE (2025)
10
New Zealand King SalmonGHG Statement FY25 (Sept)
Scope Category GHG emissions source Data sourceCalculation methodology, assumptions, uncertainty (qualitative)
Source of emission
factors
Scope 3Category 6:
Business travel
Air travel, car rentals and
hotels and accommodation
Supplier dataDistance-based method used for air travel using emission factors with radiative forcing factors
and car rentals. Nights-stayed method was used for hotels and accommodations.
Low uncertainty.
MfE (2025), DEFRA
(2025)
Category 8:
Upstream leased
assets
Fuel & electricity used
in leased assets
N/ADue to inability to split data these emissions have been captured in Scope 1 and Scope 2.
Category 9:
Downstream
transportation
and distribution
Travel from retailer
to end consumer
AssumptionsDistance-based method. High uncertainty as a distance of five kilometres by car was assumed
for the transportation from the retailer to the end-customer.
DEFRA (2025), MfE
(2025)
Category 10:
Processing of
sold products
Processing of salmon
block into meal
Internal sales data,
assumptions
Average-data method. High uncertainty.Feed suppliers
(2025)
Category 12:
End of life
treatment of
sold products
LCA Report —
King Salmon from
New Zealand
(thinkstep-anz.
(2023)), internal
sales data
Waste-type specific method.
High uncertainty as waste quantities were estimated, assuming 0% flesh waste and 30%
inedible overall waste from whole fish, and 10% overall waste from all other products.
Assumed all waste goes to landfill without gas recovery.
MfE (2025)
11
New Zealand King SalmonGHG Statement FY25 (Sept)
Independent Assurance Report
To the Directors of New Zealand King Salmon Investments Limited
Limited Assurance Report on New Zealand King Salmon Investments
Limited’s Scope 1, Scope 2 (location-based) and Scope 3 Greenhouse
Gas Emissions
Our conclusion
We have undertaken a limited assurance engagement of the accompanying Scope 1,
Scope 2 (location-based), and Scope 3 Greenhouse Gas (GHG) Emissions and related
disclosures (together, the GHG Disclosures) of New Zealand King Salmon Investments
Limited (the Company) and its subsidiaries (the Group) for the 8 month period ended
30 September 2025, as disclosed in the Greenhouse Gas Statement (the GHG
Statement).
Based on the procedures we have performed and the evidence we have obtained,
nothing has come to our attention that causes us to believe that the GHG Disclosures
for the 8 month period ended 30 September 2025 are not prepared, in all material
respects, in accordance with the recognition and measurement criteria described in
the Basis of preparation on page 5 of the GHG Statement (the Criteria).
Our assurance engagement does not extend to any other information included, or
referred to, in the GHG Statement on pages 2 to 4, 7 and 16. We have not performed
any procedures with respect to the excluded information and, therefore, no conclusion
is expressed on it.
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard
on Assurance Engagements (New Zealand) 3410 Assurance Engagements on Greenhouse
Gas Statements (ISAE (NZ) 3410), issued by the New Zealand Auditing and Assurance
Standards Board. That standard requires that we plan and perform this engagement
to obtain limited assurance about whether the GHG Disclosures are free from material
misstatement.
We assessed the GHG Disclosures against the Criteria. The GHG Disclosures need to be read
and understood together with the Criteria. The GHG Disclosures comprise the following
metrics and assertions:
• gross GHG emissions:
—Total Scope 1 emissions of 1,618 tCO2e on page 4;
—Total Scope 2 (location-based) emissions of 484 tCO2e on page 4;
—Total Scope 3 emissions of 44,312 tCO2e on page 4;
• related disclosures of gross GHG emissions on page 5 that comprise the Basis of
preparation including the reporting Criteria, the gross GHG emissions methods,
assumptions and estimation uncertainty on pages 5 to 6 and 8 to 11.
12
New Zealand King SalmonGHG Statement FY25 (Sept)
Emphasis of matter
We draw attention to the Basis of preparation description on page 5 which explains how
the Group has applied the Criteria. As set out in that section, the Group has not complied
with the disclosure requirements of the Greenhouse Gas Protocol standards ‘A Corporate
Accounting and Reporting Standard (Revised Edition)’ and ‘Corporate Value Chain (Scope
3) Accounting and Reporting Standard’ and has classified certain emissions from leased
assets within the Scope 1 and Scope 2 reported emissions, rather than Scope 3 as required
by these GHG Protocol standards. In our judgement, this disclosure is of such importance
that it is fundamental to the users’ understanding of the GHG Disclosures. Our assurance
conclusion is not modified in respect of this matter.
Other matter — Non-regulatory nature of the current year engagement
We draw attention to the fact that this limited assurance engagement has been
undertaken on a voluntary basis at the discretion of the Directors following recent
New Zealand Government announcements to amend the Financial Markets Conduct Act
2013 (the FMCA). The GHG Statement has not been prepared in accordance with New
Zealand Climate Standards, and is not intended to, and does not, meet any legislative
requirements within Part 7A of the FMCA. Our assurance engagement is therefore
intended solely for the Directors of the Company.
Other matter — Comparative Information
The comparative GHG Disclosures are prepared for the year (12 month period) ended
31 January 2025. The current year GHG Disclosures are prepared for the 8 month period
ended 30 September 2025 due to a change in the Group’s balance date.
The comparative GHG Disclosures (that is GHG Disclosures for the year ended 31 January
2025) were contained in the Group’s Climate Related Disclosures report prepared for the
purpose of meeting part 7A of the FMCA for that year. We issued an unmodified assurance
report in accordance with NZ SAE 1 Assurance Engagements over Greenhouse Gas
Emissions dated 28 May 2025 on the comparative GHG Disclosures prepared in accordance
with New Zealand Climate Standards. There have been no adjustments to the comparative
GHG Disclosures despite a change in the Criteria used for preparation of these GHG
Disclosures in the GHG Statement accompanying this report.
Directors’ responsibilities
The Directors are responsible on behalf of the Company for the preparation of the GHG
Disclosures in accordance with the Criteria, applied as explained in the Basis of preparation
on page 5 of the GHG Statement. This responsibility includes the design, implementation
and maintenance of internal control relevant to the preparation of a GHG Statement that
is free from material misstatement, whether due to fraud or error.
Our independence and quality management
We have complied with the independence and other ethical requirements of Professional
and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including
International Independence Standards) (New Zealand) issued by the New Zealand
Auditing and Assurance Standards Board, which is founded on the fundamental principles
of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
13
New Zealand King SalmonGHG Statement FY25 (Sept)
We apply Professional and Ethical Standard 3 Quality Management for Firms that
Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services
Engagements, which requires our firm to design, implement and operate a system of
quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
In our capacity as auditor and assurance practitioner, our firm also provides audit services.
Our firm carries out other assignments in the areas of other services relating to treasury
advisory. The firm has no other relationship with, or interests in, the Group.
Assurance practitioner’s responsibilities
Our responsibility is to express a limited assurance conclusion on the GHG Disclosures based
on the procedures we have performed and the evidence we have obtained. We conducted
our limited assurance engagement in accordance with ISAE (NZ) 3410. That standard
requires that we plan and perform this engagement to obtain limited assurance about
whether the GHG Disclosures are free from material misstatement.
A limited assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves
assessing the suitability in the circumstances of the Group’s use of the Criteria as the basis
for the preparation of the GHG Disclosures, assessing the risks of material misstatement
of the GHG Disclosures whether due to fraud or error, responding to the assessed risks
as necessary in the circumstances, and evaluating the overall presentation of the
GHG Disclosures. A limited assurance engagement is substantially less in scope than a
reasonable assurance engagement in relation to both the risk assessment procedures,
including an understanding of internal control, and the procedures performed in response
to the assessed risks.
The procedures we performed were based on our professional judgement and included
enquiries, observation of processes performed, inspection of documents, analytical
procedures, evaluating the appropriateness of quantification methods and reporting
policies, and agreeing or reconciling with underlying records.
Given the circumstances of the engagement, in performing the procedures listed
above, we:
• Evaluated the Group’s assessment of organisational and operational boundaries
and their exclusion of certain emission sources;
• Obtained, through enquiries, an understanding of the Group’s control environment,
processes and information systems relevant to the preparation of the GHG
Disclosures. We did not evaluate the design of particular control activities, or
obtain evidence about their implementation;
• Evaluated whether the Group’s methods for developing estimates are appropriate
and had been consistently applied. Where we considered it to be appropriate, we
tested, on a limited sample basis, the data on which the estimates are based.
In some instances, we separately developed our own estimates against which to
evaluate the Group’s estimates;
• Performed analytical procedures on particular emission categories by comparing
the activity data on a monthly basis against a historical trend;
• Tested a limited number of items to, or from, supporting records, as appropriate;
• Evaluated the supplier-specific emissions factors applied to feed by enquiring
directly with the Group’s two largest feed suppliers to understand the selection
of standards and product environmental footprint category rules and how they
determined they provided an appropriate basis for their methodology in preparing
their emissions factors;
14
New Zealand King SalmonGHG Statement FY25 (Sept)
PricewaterhouseCoopers
Auckland
27 November 2025
• Assessed the appropriateness of emission factor sources and reperformed
a limited number of emissions calculations for mathematical accuracy; and
• Considered the presentation and disclosure of the GHG Disclosures.
The procedures performed in a limited assurance engagement vary in nature and
timing from, and are less in extent than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in a limited assurance engagement
is substantially lower than the assurance that would have been obtained had we
performed a reasonable assurance engagement. Accordingly, we do not express
a reasonable assurance opinion about whether the Group’s GHG Disclosures have
been prepared, in all material respects, in accordance with the Criteria.
Inherent limitations
Because of the inherent limitations of an assurance engagement, together with
the internal control structure, it is possible that fraud, error or non-compliance may
occur and not be detected.
As discussed in the Appendix: GHG methodologies, assumptions and estimation
uncertainties to the GHG Statement, GHG quantification is subject to inherent
uncertainty because of incomplete scientific knowledge used to determine
emissions factors and the values needed to combine emissions of different gases.
Use of report
This report, including our conclusions, has been prepared solely for the Directors of
the Company.
Our report should not be used for any other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility for any reliance on this report to
anyone other than the Directors of the Company, as a body, or for any purpose other
than that for which it was prepared.
For and on behalf of:
15
New Zealand King SalmonGHG Statement FY25 (Sept)
Glossary
AR2
Second Assessment Report from
the IPCC
AR6
Sixth Assessment Report from the IPCC
CRD
Climate-related disclosures
FY25 (Sept)
8 months from 1 February 2025
to 30 September 2025
FY25 (Jan)
12 months from 1 February 2024
to 31 January 2025
FY26
12 months from 1 October 2025
to 30 September 2026
G&G
Gilled and gutted weight, in tonnes
GHG
Greenhouse gas
GWP
Global warming potential
LCA
Life Cycle Assessment
Liveweight
Weight of harvested fish before
gilling and gutting, in tonnes
NZKS
New Zealand King Salmon
Investments Limited
tCO2e
Tonnes of CO2 equivalents
WTT
Well-to-tank
16
New Zealand King SalmonGHG Statement FY25 (Sept)
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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