Slide 1: Bringing Nutrition to the World
Scales Corporation Limited Bringing Nutrition to the World Annual Results Presentation For the Year Ended 31 December 2024 26 February 2025
Slide 2: Agenda
Agenda 01. FY24 Results Summary Group Performance Divisional Performance Capital Management Sustainability 02. FY25 Outlook 03. Appendices NZ IFRS Reconciliation Disclaimer Shelby’s new toll processing facility 2 Scales Corporation Limited – 2024 Full Year Results
Slide 3: FY24 Results
01. FY24 Mr Apple train advertising in Taipei metro Results
Slide 4: Summary
Summary Shelby’s new in-plant collection and cooling system Logistics’ new Auckland warehouse and chiller facility
Slide 5: FY24 Summary
FY24 Summary Excellent financial performance whilst delivering on our growth strategy Strong result by Global Proteins: Delivered record results: Meateor Australia and Esro Petfood continue to progress through their start-up phase Underlying* EBITDA of $91.7m (2023: $67.5m) Strong performance by oth
Slide 6: By the Numbers
By the Numbers $584.6m $91.7m $12.5m 8.5 cents revenue Underlying EBITDA net cash dividends per share paid (2023: $565.4m) (2023: $67.5m) (2023: $12.0m) (2023: 19.0 cents) 152,149 MT 30,068 3,033,000 14.5% petfood ingredients sold1 TEU2 equivalents managed TCEs of own-grown ROCE4 apples exported3 (2
Slide 7: Group Performance
Group Performance The ex-Bostock Riverslea DazzleTM orchard
Slide 8: Group Financial Performance
Group Financial Performance Delivering on our growth strategies NPAT Attributable to Shareholders NPAT EBITDA Revenue $m 2024 2023 % chg. 1 2024 2023 % chg. 1 2024 2023 % chg. 1 2024 2023 % chg. 1 Underlying (excluding NZ IFRS 16) 34.8 19.2 81% 54.1 38.6 40% 79.4 55.9 42% 584.6 565.4 3% NZ IFRS 16 L
Slide 9: Trends in Group Financial Performance
Trends in Group Financial Performance Underlying NPAT Underlying EBITDA Revenue Attributable to Shareholders 9 Scales Corporation Limited – 2024 Full Year Results
Slide 10: Divisional Overview
Divisional Overview Underlying EBITDA growth across all operating divisions Strong result by all Global Horticulture performance returning to Strong Logistics result Proteins businesses, with more normal levels supported by higher ocean Meateor Australia and Esro and air freight volumes More consist
Slide 11: Divisional Performance
Divisional Performance % chg. $m 1H24 2H24 2024 Margin 1H23 2H23 2023 Margin 2024 v 2023 Global Proteins 29.6 25.8 55.4 20.7% 30.1 24.4 54.5 18.3% 2% Horticulture 30.0 7.7 37.7 15.1% 11.4 3.4 14.8 7.1% 154% Logistics 3.8 3.1 6.9 7.0% 2.7 1.6 4.3 4.6% 61% Corporate (2.9) (5.3) (8.2) N/A (2.7) (3.4) (
Slide 12: Trends in Divisional Underlying EBITDA Performance
Trends in Divisional Underlying EBITDA Performance Global Proteins Horticulture Logistics 12 Scales Corporation Limited – 2024 Full Year Results
Slide 13: Balance Sheet
Balance Sheet A continued strong financial position Net cash in line with prior year, whilst executing on growth transactions Net Cash Reconciliation ($m) $m 2024 2023 Net working capital 34.5 45.5 Non-current assets 435.0 402.0 Capital employed 469.5 447.5 Non-current & other liabilities (100.5) (7
Slide 14: Divisional Performance
Divisional Performance Inside Logistics’ new Auckland facility
Slide 15: FY24 M&A Summary
FY24 M&A Summary Horticulture Acquisition of ~240ha of planted orchards from Bostock Group Acquisition of 50% of Profruit from Bostock Group Sale of ~186ha of planted orchards to a fund managed by Craigmore Sustainables Net cost of $13.5m for these transactions Net increase of ~54ha: Noting that the
Slide 16: FY24 M&A Summary (cont.)
FY24 M&A Summary (cont.) Global Proteins Increased investment in Meateor Australia from 33% to 50% A strategically important transaction Total investment is now AUD$11.5m The net impact of all transactions on the 2024 financial result was negligible 16 Scales Corporation Limited – 2024 Full Year Res
Slide 17: Global Proteins – Financial Result
Global Proteins – Financial Result Generating earnings and volume growth Financial Performance Underlying EBITDA ($m) $m 2024 2023 % change Revenue1 266.8 298.5 -11% Underlying EBITDA 55.4 54.5 2% Underlying EBIT 53.6 53.7 0% KPIs Volumes Sold (MT 000s) MT 2024 2023 % change Petfood Ingredients Volu
Slide 18: Global Proteins – Financial Result (cont.)
Global Proteins – Financial Result (cont.) Strong result during period of expansion Consistent performance by Shelby whilst setting up for the next stage of growth Strong volume growth in New Zealand and the edible proteins business Meateor Australia and Esro Petfood continue to progress through the
Slide 19: Global Proteins – Margin Performance
Global Proteins – Margin Performance Maintaining revenue and margins per kg Petfood Ingredients Revenue and Underlying EBITDA / KG* Continued positive movement in product mix towards beef Consolidated gains in margin improvements Increased volume contribution during the start-up phase for Meateor Au
Slide 20: Global Proteins – Update on Current Initiatives
Global Proteins – Update on Current Initiatives 9 key projects across New Zealand, Australia, United States and Europe underpin our growth target Projects nearing completion Other ongoing projects New toll processing plant in the United States: Signed a contract for a second in-plant collection and
Slide 21: Horticulture – Financial Result
Horticulture – Financial Result Horticulture performance returning to more normal levels Financial Performance Underlying EBITDA ($m) $m 2024 2023 % change Revenue 248.9 209.9 19% Underlying EBITDA 37.7 14.8 154% Underlying EBIT 18.1 (2.9) -721% Improved apple volumes, quality and average prices Ben
Slide 22: Horticulture – Volumes
Horticulture – Volumes Pleasing increase in volumes Volumes 11% increase in Mr Apple total own-grown export volumes: Export Volumes (TCE 000s) 2024 2023 % change Helped by promotions and customer support in key markets Mr Apple own-grown volumes 3,033 2,733 11% External grower volumes* 1,094 1,187 -
Slide 23: Horticulture – Volumes (cont.)
Horticulture – Volumes (cont.) Continued focus on Premium apple varieties Movement in Premium Volumes (TCE 000s) Mr Apple Own Export Volumes (TCE 000s) 23 Scales Corporation Limited – 2024 Full Year Results
Slide 24: Horticulture – Forecast Volumes
Horticulture – Forecast Volumes Continuing the growth of Premium varieties It is estimated that Premium varieties will account for around 75% of export volumes by 2027 as a result of the acquisition of Bostock orchards, together with Mr Apple’s ongoing orchard redevelopment programme Mr Apple Own Ex
Slide 25: Horticulture – Pricing
Horticulture – Pricing Increased Premium and Traditional pricing Apple Prices and Exchange Rates Apple Prices by Variety (NZD / TCE, FOB) 2024 2023 % change Price growth aided by positive market sentiment, improved fruit Premium Varieties 45.6 44.1 3% quality and favourable exchange rates Traditiona
Slide 26: Horticulture – Marketing
Horticulture –Marketing A variety of brand activity and marketing in China and other key Asia markets Retail sampling programmes to communicate our brand story direct Social media presence on all major platforms in each key market to consumers In-market events and sponsorships to engage our target m
Slide 27: Logistics – Performance and Update
Logistics – Performance and Update Record Logistics result Financial Performance and KPIs Underlying EBITDA ($m) $m 2024 2023 % change Revenue 98.8 92.6 7% Underlying EBITDA 6.9 4.3 61% Underlying EBIT 5.9 3.6 65% Volumes 2024 2023 % change Ocean Freight Volume (TEUs) 30,068 26,010 16% Airfreight Vo
Slide 28: Capital Management
Capital Management Inside Shelby’s new toll processing facility
Slide 29: ROCE and Capital Expenditure
ROCE and Capital Expenditure Investing in line with divisional strategies Capital Expenditure ($m) Exceeded target Group ROCE: Maintenance 2024 2023 Excellent returns generated by Global Proteins and Logistics Global Proteins 1.6 2.6 Horticulture 4.4 2.3 Horticulture on pathway to improvement Logist
Slide 30: Sustainability
Sustainability Riverslea DazzleTM orchard at sunrise
Slide 31: Sustainability Update
Sustainability Update Progressing our Sustainability goals Governance Prepared our 2nd Climate Related Disclosure report, which will be published in April 2025 People Appointed 2 new roles to the Group, Chief Risk Officer and Global Safety Officer, both with a strong focus on Sustainability initiati
Slide 32: FY25 Outlook
02. FY25 Riverslea DazzleTM orchard Outlook
Slide 33: FY25 Outlook
FY25 Outlook Group and Global Proteins update Group Directors confirm the previously advised Guidance range of Underlying Net Profit after Tax Attributable to Shareholders of between $35.0 million to $40.0 million, implying: An Underlying Net Profit after Tax range of between $53.0 million and $60.0
Slide 34: FY25 Outlook (cont.)
FY25 Outlook (cont.) Horticulture and Logistics update Horticulture Picking and packing has commenced for the 2025 season, with initial crop indications being positive A crop of ~3.4 million TCEs is forecast for Mr Apple, which includes a higher proportion of Premium varieties as a result of the Bos
Slide 35: FY25 Outlook (cont.) – Dividends
FY25 Outlook (cont.) Dividends FY24 dividend payments likely to be made in 2 instalments: The first instalment, of 7.25 cps, was paid on 17 January 2025 A second instalment will be reviewed and advised on in early May 2025 It is expected that total dividends will be split approximately evenly betwee
Slide 36: Appendices
03. Shelby’s new toll processing facility Appendices
Slide 37: Appendix A
Appendix A Inside Logistics’ new Auckland facility
Slide 38: NZ IFRS Reconciliation
NZ IFRS Reconciliation Group Global Proteins Horticulture Logistics Corporate and eliminations $m 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Underlying / Reported Revenue 584.6 565.4 266.8 298.5 248.9 209.9 98.8 92.6 (29.8) (35.7) EBITDA Reconciliation Underlying EBITDA (excluding NZ IFRS 16)
Slide 39: NZ IFRS Reconciliation (cont.)
NZ IFRS Reconciliation (cont.) Group Global Proteins Horticulture Logistics Corporate and eliminations $m 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 NPAT Reconciliation Underlying NPAT (excluding NZ IFRS 16) 54.1 38.6 46.7 45.4 11.3 (3.4) 3.9 2.4 (7.7) (5.7) NZ IFRS 16 Leases , net of tax (0.
Slide 40: Appendix B
Appendix B Mr Apple exhibition, Vietnam
Slide 41: Disclaimer
Disclaimer The information in this presentation has been prepared by Scales Corporation Limited with due care and attention. However, neither Scales Corporation Limited nor any of its directors, employees, shareholders nor any other person shall have any liability whatsoever to any person for any lo