Half Year Results 2025-26

For the six months ended
30 November 2025
Interim Financial
Statements
Livestock Improvement
Corporation Limited (LIC)

2 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025

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

Key results and position
STATEMENT OF RESULTS FOR THE PERIOD
For the six months ended 30 November 2025
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2025 30 Nov 202431 May 2025
NoteUnauditedUnauditedAudited
Revenue1195,246 185,666 295,107
Purchased materials(23,339)(21,694)(46,266)
People costs(74,474)(72,342)(128,559)
Depreciation and amortisation(14,100)(13,553)(28,051)
Other expenses(36,633)(31,605)(65,217)
Net finance income/(cost)130 151 924
Bull team revaluation2- 7,512 12,292
Fair value change in Nil Paid Share receivable(6)(14)47
Profit/(loss) before tax expense46,824 54,121 40,277
Tax expense(13,016)(15,046)(9,634)
Profit/(loss) for the period33,808 39,075 30,643
Profit per Ordinary Share (excl. treasury stock)$0.24$0.27$0.22
Other comprehensive income
Items that will not be reclassified to profit or loss
Investment revaluations3228 251 196
Land & buildings revaluations- - 1,482
Tax effect of building revaluations- - (348)
Items that are or may be reclassified subsequently to profit or loss
Hedge revaluations31,146 304 (208)
Tax effect of hedge revaluations(321) - 58
Foreign currency translation movements3426 116 (48)
1,4796711,132
Comprehensive income for the period 35,28739,746 31,775
Supplementary non-GAAP note to the results for the period:
Profit/(loss) for the period33,808 39,075 30,643
Plus/(less): Bull team revaluation-(7,512)(12,292)
Tax effect on Bull team revaluation-2,103 3,442
Plus: Significant enterprise system implementation costs93,990--
Tax effect on Significant enterprise system implementation costs9(977)--
Plus/(less): Fair value change in Nil Paid Share receivable6 14 (47)
Underlying earnings36,82733,680 21,746
Underlying earnings per Ordinary Share (excl. treasury stock) $0.26 $0.24 $0.15
4 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025

Key results and position
STATEMENT OF POSITION
As at 30 November 2025
Di
rector
Date:
21 January 2026
Director
Date: 21 January 2026
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2025 30 Nov 202431 May 2025
NoteUnauditedUnauditedAudited
Cash and cash equivalents34,65629,704 57,127
Debtors88,51989,350 36,705
Other assets27,45026,205 22,774
Nil Paid Shares receivable359 668 722
Bull team2101,16496,384 101,164
Land, buildings and equipment - owned & leased4130,718119,876 125,845
Software, goodwill and other intangible assets449,92747,873 47,697
Total assets432,793410,060 392,034
Creditors32,20229,897 25,187
Borrowings- - -
Deferred tax34,01732,248 33,323
Other liabilities50,31241,572 35,152
Total liabilities116,531103,717 93,662
Net assets316,262306,343 298,372
Share capital376,737 76,737 76,737
Retained earnings189,307181,328 172,896
Other reserves350,21848,278 48,739
Total equity316,262306,343 298,372
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025 5

Key results and position
STATEMENT OF CASH FLOWS FOR THE PERIOD
For the six months ended 30 November 2025
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2025 30 Nov 202431 May 2025
NoteUnauditedUnauditedAudited
Customer receipts142,415130,112 289,434
Supplier payments(131,480)(118,441)(233,163)
Net tax payments1,445(236)(382)
Other operating cash flows(162)(75)498
Net operating cash flows612,21811,360 56,387
Software development(7,849)(7,519)(13,593)
Net sales/(purchases) of land, buildings and equipment(7,125)(5,854)(14,216)
Purchase of investments(156)(8)(8)
Net investment cash flows(15,130)(13,381)(27,817)
Payment of principal portion of lease liabilities(2,939)(2,693)(5,948)
Nil Paid Share receipts20 71 78
Dividends paid(17,060)(8,095)(8,095)
Net financing cash flows(19,979)(10,717)(13,965)
Movement in cash for the period(22,891)(12,738)14,605
Cash and cash equivalents at beginning of the period57,12742,341 42,341
Currency movement on cash holdings420 101 181
Cash and cash equivalents at end of the period34,65629,704 57,127
Components of cash and cash equivalents include:
Cash11 1
Bank balances26,65513,70322,126
Term deposits8,00016,00035,000
6 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025

In thousands of New Zealand dollarsNoteShare capitalRetained earningsOther reserves Total equity
Balance at 1 June 202576,737 172,896 48,739 298,372
Profit/(loss) for the period- 33,808- 33,808
Dividends paid- (17,397)- (17,397)
Hedge revaluations3- - 825825
Foreign currency translation movements3- - 426 426
Investment revaluations3- - 228 228
Balance at 30 November 2025 (Unaudited)76,737 189,30750,218316,262
Balance at 1 June 202476,737 150,567 47,607 274,911
Profit/(loss) for the period- 39,075 - 39,075
Dividends paid- (8,314)- (8,314)
Hedge revaluations- - 304 304
Foreign currency translation movements- - 116 116
Investment revaluations- - 251 251
Balance at 30 November 2024 (Unaudited)76,737 181,328 48,278 306,343
Balance at 1 June 202476,737 150,567 47,607 274,911
Profit/(loss) for the year- 30,643 - 30,643
Dividends paid- (8,314)- (8,314)
Hedge revaluations- - (150)(150)
Foreign currency translation movements- - (48)(48)
Investment revaluations- - 196 196
Land and buildings revaluations- - 1,134 1,134
Balance at 31 May 2025 (Audited)76,737 172,896 48,739 298,372
Key results and position
STATEMENT OF CHANGES IN POSITION FOR THE PERIOD
For the six months ended 30 November 2025
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025 7

These financial statements set out the performance, position and cash flows of Livestock Improvement Corporation Limited ("LIC" or the
"Company") and its subsidiaries (the "Group") for the six months ended 30 November 2025.
LIC is domiciled in New Zealand, registered under the Companies Act 1993 and the Co-operative Companies Act 1996, and listed on the
Main Board of the New Zealand Stock Exchange Limited ("NZX"). LIC is an FMC Reporting Entity for the purposes of the Financial Reporting
Act 2013 and the Financial Markets Conduct Act 2013.
These financial statements should be read in conjunction with the annual report for the year ended 31 May 2025.
Basis of preparation
i. Statement of compliance
These financial statements comply with NZ GAAP as
appropriate for Tier 1, for-profit entities, NZIFRS and IFRS.
ii. Basis of measurement
The financial statements have been prepared on a GST
exclusive basis, with the exception of trade receivables
and trade payables, which are reported inclusive of GST.
The financial statements have been prepared on a historical
cost basis, except for the Bull team, Land & Buildings and
investments, which are all measured at fair value.
The majority of the Group's business does not follow
a clearly identifiable operating cycle, therefore the balance
sheet is presented in order of liquidity as it is more relevant to
the users of the financial statements.
iii.
F
unctional and presentation currency
The functional currency of the Company and the
presentation currency of the financial statements is
New Zealand Dollars ("NZD"), with amounts rounded to
the nearest thousand.
iv.
Use of estimates and judgements
The key estimations and judgements made in preparing
these financial statements are the valuation of the Bull
team and the impairment testing of software and other
intangible assets.
v.New or amended standards adopted in current year and
standards issued but not yet effective
Accounting policies have been applied consistently with prior
periods. No new or amended standards were adopted in the
current year that had a significant impact.
NZ IFRS 18 Presentation and Disclosure in Financial
Statements is effective for the year ending 31 May 2028 and
will impact the presentation of the Statement of Results
for the Year, with an allocation of income and expenses
between operating, investing and financing categories,
and new sub-totals such as Operating profit. Financial
performance measures used to explain the Group financial
performance in public communications outside the financial
statements will also be required to be disclosed, and there is
enhanced guidance on the aggregation and disaggregation
of information. The Group is assessing the effect of applying
NZ IFRS 18.
vi.
C
limate risk
Climate change and how farmer shareholders, regulators
and others respond may an impact on the Group’s future
revenue and the recognised amounts of assets and liabilities.
While the effects of climate change are a continuing source
of uncertainty, climate-related risks have been assessed as
not having a material impact on these financial statements.
Reviews of accounting estimates (including the valuation
of the bull team and the valuation of land and buildings),
judgements and impairment testing assumptions have
considered potential future impacts of climate change.
Accounting policies
Accounting entity
8 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025

In thousands of New Zealand dollars
SIX MONTHS ENDED 30 NOV 2025
(Unaudited)
NZ market
genetics
Testing
Farm
software
InternationalOtherEliminationsTotal
External revenue116,480 36,60428,7437,2186,201- 195,246
Inter-segment revenue- - - - 1,562(1,562)-
Total revenue116,48036,60428,7437,2187,763(1,562)195,246
Depreciation & amortisation(2,089)(4,316)(1,659)(74)(5,962)- (14,100)
Segment gross profit before tax expense53,7554,62917,3511,703
1,24078,678
Bull team revaluation-
Unallocated amounts
(31,854)
Profit/(loss) before tax expense46,824
SIX MONTHS ENDED 30 NOV 2024
(Unaudited)
NZ market
genetics
Testing
Farm
software
InternationalOtherEliminationsTotal
External revenue107,57333,69629,6486,9937,756-185,666
Inter-segment revenue----1,639(1,639)-
Total revenue107,57333,69629,6486,9939,395(1,639)185,666
Depreciation & amortisation(1,684)(5,099)(1,924)(97)(4,749)- (13,553)
Segment gross profit before tax expense
48,7843,53416,8452,0201,729
- 72,912
Bull team revaluation7,512
Unallocated amounts(26,303)
Profit/(loss) before tax expense54,121
Notes to the Financial Statements
1. Business analysis
(i) Operating segments
The Group operates in four key operating segments as set out below, and across four key geographies as set out below. The information
below reflects the information regularly reported to the Chief Executive on those key operating segments:
•NZ m
arket genetics: provides bovine genetic breeding material and related services, predominately to dairy farmers
•T
esting: herd testing, on-farm support and DNA and animal health testing services
•Farm software: data recording, tags and farm management information services
•International: provides bovine genetic breeding material and related services to offshore markets
NZ Market Genetics revenue is primarily recognised at a point in time, upon delivery of product to the customer. All other revenue lines
are primarily recognised over time, as the service to the customer is provided.
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025 9

Notes to the Financial Statements
1. Business analysis (cont.)
In thousands of New Zealand dollars
YEAR ENDED 31 MAY 2025 (Audited)
NZ market
genetics
Testing
Farm
software
InternationalOtherEliminationsTotal
External revenue119,933 79,442 61,800 16,037 17,895 - 295,107
Inter-segment revenue- - - - 2,133 (2,133)-
Total revenue119,933 79,442 61,800 16,037 20,028 (2,133)295,107
Depreciation & amortisation(3,476)(10,377)(3,742)(169)(10,287)- (28,051)
Segment gross profit before tax expense31,138 11,609 33,232 2,963 2,263 - 81,205
Bull team revaluation12,292
Unallocated amounts(53,220)
Profit/(loss) before tax expense40,277
The Other operating segment includes research & development and support services. Unallocated amounts include personnel costs,
other expenses and net finance costs. Operating segments have been updated, including comparatives, to more closely align with LIC's
strategy. The changes consolidate LIC's testing services and provide greater insight on the performance of LIC's international business.
LIC's business, particularly the Parent's artificial breeding business, is highly seasonal. November results, since they incorporate the
majority of the artificial breeding revenues but not a similar proportion of total costs, are not indicative of the second half result nor,
therefore, the full year result.
The bull team is the cornerstone asset of LIC's genetics business. The bulls from which the bull team are selected are carried at their fair
value, which is based on LIC's modelling of future cash flows from the bulls (a "Level 3 valuation"). Changes in their fair value are reported
in profit/(loss) for the period. The fair value from the bulls is partly dependent on the future sales mix of LIC's genetics products, which
correlates to movements in the cow population and Farmgate Milk Price. The valuation is also sensitive to changes in the WACC rate used
to discount future cash flows and the run-off profile of bulls (revenue attributable) that make up the bull team. Further information on the
bull team and key drivers of the valuation is available in the annual report for the year ended 31 May 2025.
2. Bull team
(i) Operating segments
10 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025

Notes to the Financial Statements
3. Equity
All Ordinary Shares have voting rights and the right to receive dividends based on the profits of the Company.

At reporting date there were 142,344,836 Ordinary Shares on issue, excluding 5,337,584 shares held as treasury stock (2024: 142,344,836
Ordinary Shares, excluding 5,337,584 shares held as treasury stock).
Other reserves and equity
In thousands of New Zealand dollars
Hedge
revaluation reserve
Investment
revaluation reserve
Land & building
revaluation reserve
Foreign currency
translation reserve
Other
Reserves
Balance at 1 June 2025(230)1,652 47,425 (108)48,739
Revaluations825 228 - 426 1,479
Balance at 30 November 2025 (Unaudited)595 1,88047,425318 50,218
Balance at 1 June 2024(80)1,456 46,291 (60)47,607
Revaluations304 251 - 116 671
Balance at 30 November 2024 (Unaudited)224 1,707 46,291 56 48,278
Balance at 1 June 2024(80)1,456 46,291 (60)47,607
Revaluations(150)196 1,134 (48)1,132
Balance at 31 May 2025 (Audited)(230)1,652 47,425 (108)48,739
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025 11

Notes to the Financial Statements
4. Acquisitions and disposals
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2025 30 Nov 202431 May 2025
UnauditedUnauditedAudited
(i) Land, buildings and equipment
Acquisitions *7,6316,146 14,665
Disposals(88)(86)(524)
(ii) Software and other intangible assets
Acquisitions7,6477,478 13,808
Disposals/Impairment(1) - (183)
*Excludes the impact of NZ IFRS 16: Leases, which increased Land, buildings and equipment by $6.478 million in 2025 (November 2024:
$2.898 million, May 2025: $7.563 million).
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2025 30 Nov 202431 May 2025
UnauditedUnauditedAudited
Remuneration of key Management and Directors3,1022,480 4,622
Sale of goods and services to key Management and Directors782 650 996
Purchases of goods and services from key Management and Directors- - -
The Group has had the following short-term transactions with key Management and Directors during the period, noting sale of goods
and services were on normal trade terms:
5. Transactions with Related Parties, Directors and Management
SIX MONTHS ENDEDYEAR ENDED
In thousands of New Zealand dollars
30 Nov 2025 30 Nov 202431 May 2025
UnauditedUnauditedAudited
Profit/(loss) for the period33,80839,075 30,643
Adjusted for:
Depreciation and amortisation on all assets14,10013,553 28,051
Bull team revaluation-(7,512)(12,292)
Deferred tax expense6941,603 2,388
Working capital movements and other non-cash items(36,384)(35,359)7,597
Net operating cash flows12,21811,360 56,387
6. Reconciliation of the Profit/(loss) for the period to Net operating cash flows
12 Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025

Notes to the Financial Statements
7. Audit
In accordance with the Financial Reporting Act 2013 these interim financial statements are not required to be audited and therefore,
in line with previous years, have not been audited.
In relation to the 2025 financial year LIC declared a dividend of 12.22 cents per Ordinary Share, or $17.397 million (2024: 5.84 cents
per Ordinary Share, or $8.314 million). The fully imputed dividend was paid on 15 August 2025.
During the period LIC embarked on a significant multi-year investment into replacing and improving aged enterprise and customer
facing systems. The investment is predominantly into Software as a Service tools, the costs of which are generally expensed as
incurred rather than amortised over future financial periods. As a result, Net profit after tax has been negatively impacted by $3.013
million implementation costs in 2025 (November 2024: nil, May 2025: nil). This expenditure has been excluded from LIC's Underlying
Earnings, which is a supplementary non-GAAP measurement considered useful to investors as it is the basis on which LIC has
historically reported and used to determine dividends. Non-GAAP financial information does not have a standardised meaning
prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities..
8. Dividend
9. Significant enterprise system implementation costs
Livestock Improvement Corporation Interim Financial Statements for the six months ended 30 November 2025 13

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

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Results announcement
21 January 2026


Results for announcement to the market
Name of issuer Livestock Improvement Corporation Limited
Reporting Period 6 months to 30 November 2025
Previous Reporting Period 6 months to 30 November 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$195,246 5.16%
Total Revenue $195,246 5.16%
Net profit/(loss) from
continuing operations
$33,808 -13.48%
Total net profit/(loss) $33,808 -13.48%
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend has been declared
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security (in
dollars and cents per
security)
$1.88 $1.83
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
These results reflect the highly seasonal nature of our business activity and are
not indicative of the second half, nor the full year result. For commentary on
the results, please refer to the market statement.

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

Authority for this announcement
Name of person

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

21 January 2026

Unaudited financial statements accompany this announcement.

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Livestock Improvement Corporation (LIC)
Interim Results Market Statement
22 January 2026
Strong farmer focus on herd improvement supports positive half year result
for LIC
Livestock Improvement Corporation (LIC) today announced a strong half
year result for the FY25/26 year underpinned by volume growth across key
segments and improved underlying earnings year on year.
CE David Chin says increasing demand for sexed semen, animal health
services and GeneMark Genomics reflects the increasing focus of farmers on
genetic gain and their continued confidence in LIC’s products and services.
“We’re seeing encouraging growth in areas that matter most to our farmers.
As a generational co-operative we remain focused on delivering long-term
productivity gains for farmers and supporting sustainable genetic progress for
the New Zealand dairy herd.”
Summary of financials*:
• Total Revenue: up 5.2% at $195.2 million
• Net Profit After Tax (NPAT): $33.8 million, down 13.5% from the same period
last year
• Underlying Earnings: $36.8m, up 9.3% from the same period last year
Underlying Earnings forecast range at year-end: $20-24 million, no change
from the market update in November 2025 Net Profit After Tax (NPAT) was
lower than the prior year, primarily due to the absence of last year’s bull team
revaluation gain and the costs incurred within the period for the multi-year
investment to replace older technology and customer-facing systems.
Board Chair Corrigan Sowman says while system investment has impacted
short-term profitability, it positions LIC well for the future by improving
resilience, capability and customer experience.
“The co-operative’s balance sheet remains strong, allowing us to invest into
technology and infrastructure to support delivery of our future business
strategy.”
ENDS
This statement has been authorised for release by the Board of Directors.

Contact
Shareholder enquires:
0800 542 742
email shareregistry@lic.co.nz
Media enquiries:
Kellie Addison, LIC Communications and Brand Engagement Manager
kellie.addison@lic.co.nz, phone 021 897548
*Notes to financial information:
• LIC’s half-year result incorporates the majority of revenues from core artificial breeding (AB) and
herd testing services, but not a similar proportion of total costs so are not indicative of the second
half, nor the full year, result.
• These numbers should be read in conjunction with the financial details in the Interim Report and
2025 Annual Report.
• Figures have not been audited, with the exception of 31 May 2025 comparatives.
• Underlying Earnings: this is NPAT excluding bull valuation and nil paid share valuation movements
and is considered useful to investors as it is the basis on which LIC has historically reported and
determination of dividends. Non-GAAP financial information does not have a standardised
meaning prescribed by GAAP and therefore may not be comparable to similar financial
information presented by other entities.
• Bull team valuation: LIC’s elite bull team is its largest biological asset, valued at $101.2 million at
half-year (no change from May 2025). This valuation comprises a model that looks at future
revenue streams and costs associated with the current bulls owned, discounted back to current
value.
• Market guidance is provided on the basis that no significant events, including climate events, or
milk price change takes place between now and year-end.
• During the period LIC embarked on a multi-year investment into customer facing systems
and process improvements. This is an important initiative to replace aging systems and
improve customer experience, making the co-operative easier to work with. The investment is
predominantly into Software as a Service (SaaS) tools, the costs of which are generally expensed
as incurred, rather than amortised over future financial periods. As a result, Net Profit After Tax
(NPAT) has been negatively impacted by $3.0m implementation costs incurred in six months to 30
November 2025 and this expenditure has been excluded from LIC’s Underlying Earnings.
About LIC: lic.co.nz