Slide 1: Scales Corporation Limited Half Year Results 2024
SCALES CORPORATION LIMITED Bringing Nutrition to the World Half Year Results For the 6 Months Ended 30 June 2024 28 August 2024
Slide 2: Agenda
1. 1H24 Overview and Summary of Recent Transactions 2. Group Results 3. Divisional Performance and Update 4. Sustainability Update 5. FY24 Outlook Appendices: I. NZ IFRS Reconciliation II. Disclaimer Cover photo: Meateor Australia factory, Melbourne Scales Corporation Limited – 2024 Half Year Result
Slide 3: 1H24 Overview and Summary of Recent Transactions
1. 1H24 Overview and Summary of Recent Transactions
Slide 4: Group summary and divisional highlights
Group summary ✓ Group earnings recovering strongly: ✓ Horticulture returning towards pre-Cyclone performance levels ✓ Global Proteins’ performance consistent with 1H23 ✓ Financial results for 1H24 are in line with expectations: ✓ Underlying* NPAT Attributable to Shareholders of $28.5m (1H23: $14.5m)
Slide 5: Building on our mission to be the foremost investor in global agribusiness
Building on our mission to be the foremost investor in global agribusiness Acquired ~240ha of planted orchards Conditional sale of ~186ha of planted orchards to Increased investment in Meateor and 50% of Profruit from Bostock Group a fund managed by Craigmore Sustainables Australia from 33% to 50% ✓
Slide 6: Group Results
2. Group Results
Slide 7: Group earnings recovering strongly
Group earnings recovering strongly • Reported NPAT Attributable to Shareholders of $28.1m (up 623% on 1H23) • Underlying NPAT Attributable to Shareholders of $28.5m (up 97% on 1H23) • Underlying NPAT of $38.4m (up 55% on 1H23) • Underlying EBITDA of $60.5m (up 46% on 1H23) Scales Corporation Limited
Slide 8: Strong results from all divisions
Strong results from all divisions • Global Proteins – consistent result with 1H23 whilst executing strategic initiatives • Horticulture – returning towards pre-Cyclone profitability • Logistics – benefiting from higher air and sea freight volumes Scales Corporation Limited – 2024 Half Year Results 8
Slide 9: The financial position of the Group remains strong
The financial position of the Group remains strong • Net Debt of $81.9m as at 30 June 2024 vs $29.8m as at 30 June 2023: ◦ Reflects investments made during the 6-month period ◦ Forecasting a return to a net cash position at 31 December 2024, assuming settlement of orchard sales • Agricultural produc
Slide 10: Divisional Performance and Update
3. Divisional Performance and Update
Slide 11: Delivering consistent earnings
Delivering consistent earnings • Underlying EBITDA of $29.6m (1H23: $30.1m) • Shelby continued to deliver strong volumes, up on 2H23 • Whilst Meateor Australia and Esro Petfood are both in a start-up phase, they are delivering increased production volumes • Additionally, Meateor Australia has been i
Slide 12: Producing stable revenue and earnings per kg
Producing stable revenue and earnings per kg Petfood Ingredients Revenue and Underlying EBITDA / KG* • FY23 vs 1H24 performance: ◦ A number of our petfood ingredients business units have generated improved margins in 1H24 ◦ However, start-up costs from Esro Petfood have offset some of these margin i
Slide 13: 9 key projects underpin our growth target
9 key projects across New Zealand, Australia, United States and Europe underpin our growth target Petfood ingredients Other ongoing projects • New toll processing plant in the United States: • Salmon proteins - continuing to investigate ◦ Building and services complete, plant installation underway,
Slide 14: Result underpinned by increased premium volumes
Result underpinned by increased premium volumes • Underlying EBITDA $30.0m (1H23: $11.4m): ◦ Includes 100% of Profruit earnings for the full 6 months • In-market pricing meeting expectations • Forecast increase of ~11% for Mr Apple’s total own-grown export volumes at 3.0m TCEs (2023: 2.7m TCEs): ◦ T
Slide 15: Mr Apple Premium volumes make pleasing return to 2022 levels
Mr Apple Premium volumes make pleasing return to 2022 levels Premium Volumes (TCE 000s) • ~45% increase in DazzleTM and PosyTM compared to 1H23 • DazzleTM and PosyTM forecast to account for almost 20% of forecast 2024 Premium volumes (2023: 15%). There will be a further uplift in 2025 with the acqui
Slide 16: Benefitting from increased air and sea freight volumes
Benefitting from increased air and sea freight volumes Logistics - Underlying EBITDA ($m) • Underlying 1H24 EBITDA of $3.8m (1H23: $2.7m), an increase of 44% • Strong external customer air freight volumes processed through the new Auckland warehouse and chiller facility • A return to more normal sea
Slide 17: Sustainability Update
_. ie ae ‘—F @% P 4 7 ms i ustatnability Update
Slide 18: Continuing to make progress on our sustainability initiatives
Continuing to make progress on our sustainability initiatives • Ongoing Scope 3 screening exercise* to identify other value chain sources, and their methodologies, for inclusion into FY24’s emissions inventory • Completed our assurance readiness workstream, which assessed our emissions inventory rep
Slide 19: FY24 Outlook
Scales LOGISTICS atin“ UHUMHHSHT 1
Slide 20: Scales re-confirms its FY24 guidance
Scales re-confirms its FY24 guidance • Directors re-confirm that Underlying Net Profit after Tax Attributable to Shareholders is expected to be within the previously advised range of $30.0m to $35.0m • In re-confirming this guidance Directors note: ◦ That the combined impact of the Bostock and Craig
Slide 21: Appendices
Appendices
Slide 22: NZ IFRS Reconciliation
Scales Corporation Limited – 2024 Half Year Results 22 global nutrition
Slide 23: NZ IFRS Reconciliation
Scales Corporation Limited – 2024 Half Year Results 23 global nutrition
Slide 24: 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 loss (includi