Scales Corp. Ltd. · NZX:SCL
Scales — Merger or Acquisition (September 2022)
12 slides from Scales's merger presentation, Sep 27, 2022
Slide 1: Petfood and Edible proteins investment in Australia
SCALES CORPORATION LIMITED Bringing Nutrition to the World Petfood and Edible proteins investment in Australia 27 September 2022 Scales Corporation Limited – 2022 Half Year Results 1 global nutrition
Slide 2: Investment outline and agenda
• Investment outline • Strategic rationale for the investments • Petfood proteins overview • Edible proteins overview • Global proteins – updated supply chain • Alignment to strategic objectives Scales Corporation Limited – Market Announcement 2 global nutrition
Slide 3: Investment outline: Petfood and Edible Proteins transactions
• Scales has entered into an agreement to subscribe for a 33% shareholding of a newly established Petfood business based in Australia Transaction #1 • This business is currently developing a greenfield site in Melbourne to process and market petfood proteins. The plant has been ordered, and we are i
Slide 4: Securing Australia as a supply base
Australia's product mix, growth and proximity to Asia make it a strategically important supply base for both our petfood customers and edible by-product markets These investments are another step towards improving our footprint in Australia, moving up the supply chain, establishing direct supply rel
Slide 5: Petfood proteins: key transaction metrics
• Scales has announced the establishment of a new Australian- Key Transaction Metrics based petfood protein manufacturing facility • Scales will be partnering with industry participants who bring Cash contribution Scales’ contribution to the initial set up costs are extensive supply relationships to
Slide 6: Melbourne facility and site location
• The facility is expected to be commissioned in Q1 2023. The plant has Melbourne Map been ordered, and we are in advanced discussions on supply contracts. Our intention is to scale up to full production over the course of 2023 • As mentioned in the outline, there maybe some disruption to earnings a
Slide 7: Forecasted value of the global retail petfood market
• The expected value of the global petfood market is increasing due to demand for increased quantity and quality of petfood • Rising levels of disposable income in emerging markets and social changes globally, are the key drivers of pet ownership growth • Older age groups are also increasingly likel
Slide 8: Fayman International partnership: key transaction metrics
• Scales is also announcing a further partnership with the Fayman family, via their Australian interests in Fayman International • Over 40 years of operations, Fayman International have built relationships with, and sourced supply from, more than 70 abattoirs in Australia and has more recently been
Slide 9: Fayman International export markets and Asia meat consumption
• While Fayman International exports across the globe, it generates ~90% of its revenue from exports to 8 countries, with a specific concentration of sales to South East Asia • Fayman International have developed deep relationships with customers in these markets, with long tenures over their operat
Slide 10: Fayman International as a solutions provider
• Fayman International has developed its business by positioning itself as a solutions provider. • Their value proposition to suppliers is that they are able to market and sell all of their by-product, as a single offtake partner, thereby simplifying suppliers’ operations. This includes both edible
Slide 11: Global proteins updated supply chain
• Scales’ strength in global proteins lies in its supplier and customer relationships coupled with its logistics network, and a reputation for quality products. As mentioned in the half year presentation, Scales will look to leverage this expertise for complementary expansion • These transactions pr
Slide 12: Alignment to Scales' strategic objectives
These investments deliver on Scales’ strategic objectives by • Becoming a strategic partner to our suppliers, taking all by-product material – both inedible and edible Secure global supply and • Giving access to new markets and customers across key growth regions access new markets • Providing a dir