Slides
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1HY25 (SEPT) HALF YEAR FINANCIAL RESULTS
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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 unaudited half year 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. 21HY25 (SEPT) INVESTOR PRESENTATION
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PRESENTERS Carl Carrington Chief Executive Officer Ben Rodgers Chief Financial Officer Grant Lovell GM Aquaculture 31HY25 (SEPT) INVESTOR PRESENTATION
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EXECUTIVE SUMMARY 1HY25 (Sept) • The 6 months to 31 July 2025 (1HY25 (SEPT)) result was a Net loss after tax of $20.8m (6 months to 31 July 2024 (1HY25 (Jan)) was a Net profit of $6.0m). When compared to the prior comparable period (pcp) the current financial results have been impacted by a period of challenging biological performance, as subdued feed outs resulted in lower than forecast biomass at sea. The lower biomass at sea resulted in a decision to reduce harvest volumes to rebuild biomass. The GAAP results are also impacted by non-cash adjustments relating to a pre-tax fair value loss on biological assets/inventory of $31.2m (1HY25 (Jan) pre-tax gain of $3.7m). • The Pro-Forma EBITDA at half year (1HY25 (Sept)), which is both our preferred performance measure and the profit measure that NZKS guides to, was a profit of $5.7m (1HY25 (Jan) profit of $13.5m) impacted predominately by the 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. Feed outs have recovered back to forecast levels, and the implementation of a new summer feed diet should provide a mitigant heading into the upcoming summer. • Despite the challenging half, confidence remains with both a growth pathway progressing (BE pilot) and strong demand for the product both locally and globally. Blue Endeavour update • Pilot pens have been constructed and are currently moored at Waihinau • Pilot farm fish are performing as expected and continue to be grown out at Waihinau and will be ready to relocate to the Blue Endeavour (BE) site November 2025. • The BE service vessel “Whekenui” has been completed and is scheduled to be delivered to NZ in October. • The contract for the design of the Pilot RAS, to be constructed at the Tentburn hatchery, has been signed • Sustainable Food and Fibre Futures (SFF Futures) fund partnership with New Zealand Government is progressing well (~$2m received in funding from SFF Futures under this partnership in 1HY25 (Sept)) Balance sheet • Balance Sheet remains strong with net cash on hand ~$58.4m • Capex spend for the 6 months to 31 July 2025 was $8.5m, with capex forecast for period end, 30 September 2025, being ~$14m. Capex spend for the period, excluding the BE pilot spend, of $2.7m was focussed on stay in business capex including replacement nets, moorings, machinery and site works. BE pilot capex $5.8m (includes pens, nets, moorings, service vessel and commencement of work on RAS pilot) FY25 (Sept) guidance • Pro-Forma EBITDA guidance range, for the 8-month period ended 30 September 2025, remains at $1million to $7million, with the Board guiding to the upper half of this range. • Expected harvest ~3,150 MT to 3,450 MT 41HY25 (SEPT) INVESTOR PRESENTATION
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1HY25 (SEPT) PERFORMANCE
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$94 1HY25 (SEPT) REVENUE OF MILLION METRIC TONNES HARVESTED DURING 1HY25 (SEP) GEOGRAPHIC SPREAD OF REVENUE NORTH AMERICA EUROPE NEW ZEALAND AUSTRALIA JAPAN CHINA ASIA EX JAPAN & CHINA 41% 3% 4% 4% 11% 34% 3% 61HY25 (SEPT) INVESTOR PRESENTATION 2,691 1HY25 (SEPT) OPERATIONAL HIGHLIGHTS 80 80 92 102 94 1HY22 1HY23 1HY24 1HY25 (JAN) 1HY25 (SEPT) (5.6) (24.5) 10.6 6.0 (20.8) 1HY22 1HY23 1HY24 1HY25 (JAN) 1HY25 (SEPT) 1HY25 (SEPT) GAAP NPAT 4.3 (12.7) 10.7 13.5 5.7 1HY22 1HY23 1HY24 1HY25 (JAN) 1HY25 (SEPT) 1HY25 (SEPT) PRO-FORMA OPERATING EBITDA
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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 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 July 25) Omega Plus • Partnered with PetStock to build awareness and preference across the Omega product range, with a combined social and EDM campaign reaching more than 640,000 pet owners and strengthening brand presence in market (Source: Meltwater, Mailchimp) 71HY25 (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
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SALES PERFORMANCE Global Reach and Key Strategic Market focus North America (MT) Domestic Market (MT) Asia (MT) Excludes ChinaEurope (MT) Australia (MT) First half sales Second half sales Sales have been disrupted in 1HY25 (Sept) by supply constraints. 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 and Foodservice market was down due 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 has shown good growth despite the growth opportunities being supply restricted. There is strong demand and this market remains a significant growth opportunity • 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 81HY25 (SEPT) INVESTOR PRESENTATION China (MT) 1,414 1,086 1,314 1,421 1,098 1,719 1,091 1,176 1,489 FY22 FY23 FY24 FY25 (JAN) FY25 (SEPT) 1,333 1,156 958 1,016 866 1,417 1,219 1,058 1,109 FY22 FY23 FY24 FY25 (JAN) FY25 (SEPT) 203 258 372 351 295 290 321 321 400 FY22 FY23 FY24 FY25 (JAN) FY25 (SEPT) 4 5 37 71 113 34 30 67 FY22 FY23 FY24 FY25 (JAN) FY25 (SEPT) 100 131 81 83 62 132 87 64 71 FY22 FY23 FY24 FY25 (JAN) FY25 (SEPT) 575 249 262 236 190 451 234 226 268 FY22 FY23 FY24 FY25 (JAN) FY25 (SEPT)
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FISH PERFORMANCE • During 1HY25 (Sept) the third summer of our adapted farming strategy was completed. This involves having the majority of our biomass in the cooler Tory Channel region over the warmer months, before towing to Queen Charlotte Sound post-summer. • As announced in May 2025, NZKS experienced a significant reduction in feed volume and slightly elevated mortality over the 2024/25 summer period. This resulted in reduced growth, reduced biomass at sea, an increased FCR over this period, and a major impact on the harvest volumes available for sale. • Feed prices have fallen over the last 12 months, which is a positive. The promising summer diet trial (trialled at the Ruakākā trial facility last summer). will be rolled out across the business in the coming months. This diet displayed significant performance improvements but does also come with an increased feed cost. Biological Performance 1HY25 (Sept) 1HY25 (Jan) % chg. Harvest Volume (G&G MT) 2,691 3,362 (20%) Average Harvest Weight (G&G Kg) 3.25 4.23 (23%) Feed Conversion Ratio (FCR) 2.07 1.85 12% Closing Livestock Biomass 3,679 4,565 (19%) Feed Cost ($ / Kg of feed) 3.17 3.45 (8%) Sound Farm Harvested Volume (G&G MT) 1HY25 (Sept) 1HY25 (Jan) % chg. Queen Charlotte Ruakākā 12 - Ōtānerau 344 - Tory Channel Clay Point 482 537 Te Pangu 1,250 1,701 Ngāmahau 590 1,117 Pelorus Sound Waitātā - - Freshwater 13 7 Total 2,691 3,362 (20%) 91HY25 (SEPT) INVESTOR PRESENTATION 2021 2022 2023 2024 2025 Seafarm Mortality Biomass (MT) from February - July
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NZKS SUSTAINABILITY FOCUS • NZKS released its second Climate-Related Disclosures report in May 2025 – noting an improved carbon intensity measure. The Scope 1 & 2 emissions per tonne (tCO2e/t) intensity indicator reduced by 9.5%, showing efficient usage of resources • NZKS’ FY25 (JAN) carbon emissions for Scope 1, 2 and 3 were assured for the first time • NZKS completed NZ’s first in-house aquaculture finfish ensilage plant in mid-2024, which allows us to divert organic waste from landfill • Ongoing focus on how to optimise our remaining raw materials. • Submission of NZKS’ fifth Modern Slavery Report (Australian Modern Slavery Act 2018) • NZKS was part of the working group for the Seafood Integrated Scenarios report, which is a world first, weaving together climate change, nature, and Te ao Māori into a practical, culturally grounded scenario framework. WE CONTINUE TO PROGRESS ON OUR SUSTAINABILITY JOURNEY 101HY25 (SEPT) INVESTOR PRESENTATION
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1HY25 (SEPT) RESULTS
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1HY25 (SEPT) HEADLINE FINANCIAL PERFORMANCE 1 A full reconciliation between GAAP and Pro-Forma results is shown on pages 23 and 24 of this presentation 2 1HY25 (JAN) GAAP Gross Profit/(loss) has been restated due to a change in presentation in the financial statements at the end of FY25 (12 months to 31 Jan 25) (Depreciation associated with growing and processing salmon is now included in ‘Cost of goods sold). There is no change to reported EBITDA or NPAT on a GAAP or Pro-Forma basis. Revenue – Total revenue was impacted by a reduction in available harvest. Revenue per kg increased due to a change in product mix (higher proportion of value added product sold as finished goods on hand was used to partially mitigate the reduction in harvest) and pricing increases. Gross Profit – GAAP Gross Profit was negatively impacted by both a reduction in volume sold (lower harvest) and fair value movements when compared to the prior period (this is in line with the decrease in the forecasted harvestable biomass). EBITDA – In addition to the gross profit explanation above. EBITDA was negatively impacted by an increase in overhead costs. Consistent with previous market updates, overhead costs have increased due to investments in capability to deliver both BAU improvements and growth projects (BE and Greenfield processing site). The decrease in other income on a GAAP basis is attributable to a decrease in the unwind of FX contracts closed out in FY21/FY22. NPAT – has decreased on a GAAP basis from the prior comparable period as a result of the decrease in EBITDA, partially offset by a tax reduction in the tax expense. 121HY25 (SEPT) INVESTOR PRESENTATION Group Financial Performance GAAP Pro-Forma1 NZ$000s 1HY25 (SEPT) 1HY252 (JAN) % chg. 1HY25 (SEPT) 1HY25 (JAN) % chg. Volume Sold (MT) 2,624 3,178 (17%) 2,624 3,178 (17%) Revenue 94,471 101,735 (7%) 94,471 101,735 (7%) Gross profit/(loss) (12,714) 21,601 - 22,388 28,364 (21%) Gross Margin % (13%) 21% 24% 28% EBITDA (25,065) 12,481 - 5,736 13,516 (58%) EBITDA % (27%) 12% 6% 13% EBIT (29,594) 8,756 - 1,207 9,791 (88%) Net profit/(loss) after tax (20,845) 6,006 - 1,331 6,751 (80%)
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1HY25 (SEPT) INVESTOR PRESENTATION • Revenue o Volume - 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. o Price - The decreased volume impact was partially offset by both a change in product mix (a greater proportion of value added products were sold, utilising finished goods on hand) and price increases. • Cost of goods o Volume - has decreased - consistent with a decline in harvested volumes. o Operational Leverage - As commented previously the lower harvest volumes highlights the high operational leverage in the business, with high fixed and semi variable costs impacting COGS. • Mortality increased slightly on the prior comparable period (pcp), the mortality does represent an opportunity cost following onto lower biomass and impacting operational leverage. • Corporate costs have increased and are up on the pcp reflecting: o Investments in capability as the business continues to builds for the delivery of growth initiatives (including the Blue Endeavour pilot and greenfield processing site) 1 Refer to pages 23 & 24 for full reconciliation between GAAP and Pro- Forma results 13 PRO -FORMA 1 EBITDA COMPARISON 13.5 (17.7) 10.5 9.2 (6.5) (1.5) (1.6) (0.2) 5.7 1HY25 (JAN) Decreased sales volumes Price/Customer/ Product Mix COGS - Volume Decrease COGS - Operational Leverage/ Inflation Mortality Corporate Costs Other Income 1HY25 (SEPT) PRO-FORMA EBITDA 1HY25 (JAN) to 1HY25 (SEPT)
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BALANCE SHEET NZKS’ balance sheet has been impacted by the reduction in the value of Salmon at sea (biological assets). The reduction in the fair value of biological assets recognises a reduction of fish available for harvest which will impact future EBITDA. Biomass is expected to continue to recover through FY26 (12 months ended 30 September 2026) and FY27 (Consistent with a 30 – 36 month life cycle of salmon). Should volumes recover as forecast, a fair value gain is expected to be recognised in the FY26 accounts. Outside of the biological asset story working capital management has remained disciplined. For the period ending 31 July 2025: • Net Cash on hand increased to $58.4m (this includes ~$2.0m of funding received from the SFF Futures fund partnership) • Finished Goods (Inventories) on hand reduced from $17.9m to $11.0m, NZKS has sold down a number of SKU’s to safety stock levels attributable to the reduced harvest • Payables has increased due to timing of inventory purchases • Other current liabilities have decreased due to the fair value movement of FX instruments and timing of insurance instalments. The current period balance includes $2.6m related to deferred revenue from the SFF Futures funding NZKS invested ~$8.5m in capex for 1HY25 (Sept). Major capex projects included spend of $5.8m 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 $2.7m, focused on stay in business capex including replacement nets, moorings, machinery and site works. The Capex forecast for the period ending FY25 (Sept) is ~$14m. NZKS has also gone unconditional on a commercial site in Cloudy Bay Business Park in Blenheim for $8.14 million (settlement expected 7 October 2025) with a lens to future processing requirements. NZKS utilised all available brought forward tax losses during the year ended 31 January 2025 and was in a tax paying position. The loss for the current period (1HY25 (SEPT)) generated tax losses. Due to the balance date change NZKS will have a 20-month income tax period from 1 Feb 24 to 30 Sept 25, therefore the tax losses generated in this period will be offset against the taxable profit for the period to 31 January 2025 reducing the current tax payable position, as at 31 July 2025. 1 Cash and equivalents include $3m term deposits with maturities > 4 months (31 Jan 25: $3m) 141HY25 (SEPT) INVESTOR PRESENTATION Group Financial Position Jul-25 Jan-25 NZ$000s Unaudited Audited Current Assets Cash and cash equivalents 60,354 52,738 Receivables 14,343 17,262 Inventories 21,257 27,190 Biological Assets 55,785 88,145 Derivative financial assets 1,484 1,016 153,223 186,351 Non-Current Assets Property, plant & equipment 57,609 52,427 Other 14,614 13,418 72,223 65,845 Total Assets 225,446 252,196 Current Liabilities Loans (external) 2,358 4,505 Lease Liabilities 1,745 1,834 Payables 19,282 13,456 Other 8,966 16,757 32,351 36,552 Non-Current Liabilities Lease Liabilities 8,078 8,647 Other 1,452 9,966 9,530 18,613 Total Liabilities 41,881 55,165 Net Assets 183,565 197,031 Net Cash / (Debt) 58,354 50,738
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FROM SURVIVING TO THRIVING
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FY25 (SEPT)* GUIDANCE UPDATE $1m-$7m *FY25 (Sept) Pro-Forma EBITDA Guidance (8 months to 30 September 2025, following change in balance date) • FY25 (Sept)* guidance range provided as Pro-Forma EBITDA of $1million – $7million. The Board anticipate achieving in the upper half of the range. • Our FY25 (Sept) guidance is a result of: o Harvest reduction: The decision by the Board to reduce harvest was made to rebuild biomass following a period of lower than anticipated growth over the first half of 2025. The main contributor to the reduced growth was from subdued feed outs. Feed outs have improved, however the long grow out cycle for Salmon doesn’t see a rebound in biomass until the FY27 year. At this stage, the Board’s best estimates of harvest volumes are: o FY26 (30 September 2026) ~5,200 G&G MT to ~5,800 G&G MT o FY27 (30 September 2027) ~6,800 G&G MT to ~7,400 G&G MT o Finished Goods optimisation: With the reduction in harvest there has been continued focus to reduce finished Goods on hand to safety stock levels • FY25 Capex forecast at ~$14m o Blue Endeavour Pilot Project ~$11m (includes pens, nets, moorings, service vessel and commencement of work on RAS pilot) o Stay in business Capex of ~$3.0m which is below previous guidance around BAU capital needs due to timing (replacement nets, moorings, machinery and site works) • The Board has reconfirmed that dividends will remain on hold for the foreseeable future as NZKS develops the Blue Endeavour project 161HY25 (SEPT) INVESTOR PRESENTATION
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DOUBLING DOWN ON THE CORE Despite the supply disruptions which will impact the FY25 (Sept) & FY26 results, optimism remains around the long term growth opportunities for NZK. Our direction of travel has not changed. Rather, the emphasis on certain initiatives has increased, 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: Aquaculture Improvements • Implementing a summer feed diet, which was trialled at our Ruakākā trial facility in 2024/2025. This trial demonstrated improved summer performance by reducing the FCR , reducing mortality and improving fish health/welfare when compared to the current commercial diet used over the same period. • Breeding for Resilience: Work is ongoing in our breeding programme to continue selective breeding for thermotolerance and summer survival. NZKS is expanding our partnership with the MBIE-funded Climate Adapted Finfish programme to include selective breeding for disease resistance and ongoing genomics work. • Vaccine development: We are continuing our vaccine development in collaboration with key partners. • High flow consent conditions reviewed with some modifications – alignment of monitoring with best practice (benthic, reef and water quality), simplification of compliance process, feed discharge staging requirements removed, and allowance for therapeutants. The removal of feed discharge staging gives NZKS earlier access to an additional 3,500MT of potentially 1 usable feed discharge down the Tory Channel. • Therapeutants: with the change in some consent conditions, therapeutants (e.g. antibiotics) are now able to be administered to our fish at 6 of our 8 active marine sites. This would only be undertaken with the direction and supervision of our inhouse licensed veterinarian. Processing & Sales • Investments in processing capabilities that will enable NZKS to extract more value from harvested biomass • Investment into the Regal brand in the China market. The early results are promising with limited supply being the biggest constraint (reduced harvest). This is encouraging as we position this market for future growth. 171HY25 (SEPT) INVESTOR PRESENTATION Ruakākā trial pens Regal Brand in China 1. Additional feed discharge still needs to be in line with the environmental conditions of the consents
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EXECUTING GROWTH Executing Growth With fish for the Blue Endeavour Pilot Farm now at sea and due to be transferred to the Blue Endeavor site later this year NZK continue to look for ways to accelerate and/or de-risk the growth profile. The focus is on investing in the right things, in the right order and at the right time. Aquaculture • The SFF Fund (now called the Primary Sector Growth Fund) Future Farming project is progressing well: - Blue Endeavour pilot farm continues to proceed as planned, with fish and pens being relocated to the BE site in the coming months - Pilot RAS continues to track to plan • The lease of a well boat is being investigated (earlier than originally planned) to unlock operational opportunities at the inshore farms. Processing & Sales • Cloudy Bay site acquired and design work underway for a new processing facility (Whole fish & filleting) • Market development – geographies and customers Corporate • Continued investment in capability – to execute on the growth opportunities (including Blue Endeavour) NZK continues to make investments in capability 181HY25 (SEPT) INVESTOR PRESENTATION Well-boat Blue Endeavour pens
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1HY25 (SEPT) INVESTOR PRESENTATION 19 A well-boat (live fish transportation vessel) is required to operate Blue Endeavour at scale. NZKS is currently investigating the opportunity to bring forward the timing of this lease. A well-boat has the potential to unlock the following benefits for NZKS: • Supports inshore volume increases by providing the ability to access underutilised feed discharge, thus increasing the farming capacity for inshore sites. An example of this would be transferring smolt to the Tory channel and relocating these fish to the Pelorus over colder months to utilise the available feed discharge • Enables farming improvements through fallowing of sites, grading of fish (during lifecycle) and single-year class which are expected to yield improvements in both quality and fish performance • Eliminates manual towing risk (reduce risk of mortality and degradation in fish performance) The Board and Management are still working through these options and plans WELL- BOAT – A TRANSFORMATIONAL SHIFT
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BLUE ENDEAVOUR - PILOT UPDATE 201HY25 (SEPT) INVESTOR PRESENTATION Today 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’ en route from Vietnam – ETA October
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APPENDICES
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HIGH FLOW CONSENT CONDITIONS REVIEWED AND RENEWED Farms Region Expiry date Status Feed Staging Change *1 Ruakākā Queen Charlotte 2044 Active No Change Ōtānerau Queen Charlotte 2044 Active No Change Forsyth Bay Pelorus 2044 Fallow No Change Waihinau Pelorus 2044 Active No Change Crail Bay Pelorus 2044 Fallow No Change Clay Point Tory Channel 2050 Active +1,500MT Te Pangu Tory Channel 2050 Active +500MT Waitātā Pelorus 2050 Active +2,000MT Ngāmahau Tory Channel 2050 Active +1,500MT Kopāua Pelorus 2050 Fallow +2,500MT Blue Endeavour Cook Strait 2057 Active No 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 to 3,000MT of potentially usable feed discharge at Ngāmahau and Clay Point. There was also an increase in feed discharge at Waitātā (2000MT) and Kopāua (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 use therapeutants 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 well under consented levels to maintain consent/environmental compliance 221HY25 (SEPT) INVESTOR PRESENTATION
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1HY25 (SEPT) RECONCILIATION BETWEEN GAAP AND PRO- FORMA FINANCIALS 231HY25 (SEPT) INVESTOR PRESENTATION NZD 000s Statutory Financial Statements Depreciation Fair Value Adjustments Early FX Close-outs Pro-Forma Operating Financial Information Revenue 94,471 94,471 Cost of goods sold (89,986) 3,896 14,007 (72,083) Fair value gain / (loss) on biological transformation (17,199) 17,199 - Gross profit/(loss) (12,714) 3,896 31,206 - 22,388 Other operating income 588 (405) 183 Overheads Selling and distribution expenses (8,404) 195 (8,209) Corporate expenses (8,235) 438 (7,797) Other expenses (829) (829) Add: Depreciation 4,529 (4,529) - EBITDA (25,065) - 31,206 (405) 5,736 Deduct: Depreciation and amortisation (4,529) (4,529) EBIT (29,594) 31,206 (405) 1,207 Finance income 833 833 Finance costs (334) (334) Net finance costs 499 - - 499 Profit /(loss) before Tax (29,095) 31,206 (405) 1,706 Income tax (expense) / credit 8,250 (8,738) 113 (375) Net profit/(loss) after tax (20,845) 22,468 (292) 1,331
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1HY25 (JAN)1 RECONCILIATION BETWEEN GAAP AND PRO-FORMA FINANCIALS 1 1HY25 (JAN) GAAP Gross Profit/(loss) has been restated due to a change in presentation in the financial statements at the end of FY25 (12 months to 31 Jan 25) (Depreciation associated with growing and processing salmon is now included in ‘Cost of goods sold). There is no change to reported EBITDA or NPAT on a GAAP or Pro-Forma basis. 241HY25 (SEPT) INVESTOR PRESENTATION NZD 000s Statutory Financial Statements Depreciation Fair Value Adjustments Early FX Close-outs Pro-Forma Operating Financial Information Revenue 101,735 101,735 Cost of goods sold (114,118) 3,105 37,642 (73,371) Fair value gain / (loss) on biological transformation 33,984 (33,984) - Gross profit/(loss) 21,601 3,105 3,658 - 28,364 Other operating income 3,001 (2,623) 378 Overheads Selling and distribution expenses (8,431) 74 (8,357) Corporate expenses (7,359) 546 (6,813) Other expenses (56) (56) Add: Depreciation 3,725 (3,725) - EBITDA 12,481 - 3,658 (2,623) 13,516 Deduct Depreciation and amortisation (3,725) (3,725) EBIT 8,756 - 3,658 (2,623) 9,791 Finance income 644 644 Finance costs (250) (250) Net finance costs 394 - - 394 Profit /(loss) before Tax 9,150 - 3,658 (2,623) 10,185 Income tax (expense) / credit (3,144) - (1,024) 734 (3,434) Net profit/(loss) after tax 6,006 - 2,634 (1,889) 6,751
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APPENDIX – GLOSSARY OF TERMS FY27 Financial results for the 12 months from 1 October 2026 to 30 September 2027 FY26 Financial 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 FY24 Financial results for the 12 months from 1 February 2023 to 31 January 2024 FY23 Financial results for the 12 months from 1 February 2022 to 31 January 2023 FY22 Financial 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 1HY24 Financial results for the 6 months from 1 February 2023 to 31 July 2023 1HY23 Financial results for the 6 months from 1 February 2022 to 31 July 2022 1HY22 Financial results for the 6 months from 1 February 2022 to 31 July 2021 EBITDA Earnings before interest, tax, depreciation and amortisation FCR Feed Conversion Ratio – the amount of feed (in kilograms) required to grow 1 kilogram of fish weight G&G Gilled and gutted. Note that all volumetric information presented is on a gilled and gutted basis unless otherwise stated GAAP Generally Accepted Accounting Practice MT Metric tonnes NPAT Net profit after tax, also reported as net profit for the period in our published financial results NZKS New 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 this document. Pro-Forma Operating EBITDA is a non-GAAP profit measure that NZKS provides market guidance against RAS Recirculating Aquaculture System 251HY25 (SEPT) INVESTOR PRESENTATION
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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. 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. 261HY25 (SEPT) INVESTOR PRESENTATION