2020 Interim Results announcement

Scales Corporation Limited
Head Office: 52 Cashel Street | Christchurch 8013 | New Zealand
Postal: PO Box 1590 | Christchurch 8140 | New Zealand
Phone: +64 3 379 7720
scalescorporation.co.nz




NZX & Media Release

26 August 2020

SCALES CORPORATION DELIVERS STRONG RESULT DURING GLOBAL PANDEMIC

Highlights – 6 months to 30 June 2020 (1H20)

• Privileged that all divisions were deemed essential businesses throughout the lockdown alert
levels.
• Continued to run the business across all sites during times of peak harvest and production.
• Underlying NPAT
1
of $29.2 million (1H19: $30.1 million).
• Underlying EBITDA
2
of $44.4 million (1H19: $47.3 million).
• Record Mr Apple export volumes of 3.9 million TCEs
3
.
• Food Ingredients benefitted from increased pet food demand during lockdown.

Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its 1H20 results.
NPAT for the Group was $27.8 million (1H19: $121.8 million), a solid result during the midst of a
global pandemic.

Scales Corporation Chair Tim Goodacre noted: “Trading throughout the COVID-19 lockdown was not
without its challenges. However, the continuity of the business and the ensuing results were made
possible by strong leadership together with the courage and hard work of team members.”

“Whilst the divisional mix of our earnings differs from prior years, the diversified geographical and
operational nature of our business, together with our vertically integrated business structure,
undoubtedly assisted us to achieve the returns noted.”

Divisions

The Horticulture division delivered an Underlying EBITDA of $32.4 million (1H19: $41.3 million),
together with a record-equalling crop of 5.1 million TCEs and record export volumes of 3.9 million
TCEs. Managing Director Andy Borland commented: “COVID-19 lockdowns occurred during the peak

1
Net Profit After Tax
2
Earnings Before Interest, Tax, Depreciation and Amortisation
3
Tray Carton Equivalents

harvest and production period for the Horticulture division. Whilst we maintained strong sales into our
European markets, sales to Asia and near markets were unfortunately adversely affected by changes
in logistics and customer purchasing patterns. As a result, a lower percentage of crop was sold by 30
June 2020 compared to previous years and we experienced price pressure in Asia markets in
particular. However, we believe our strategy to operate in diversified geographical markets with a
range of both premium and traditional apple varieties provided us with a strong base to deliver the
current period result.”

The Food Ingredients division delivered an excellent first half result with Underlying EBITDA of $11.0
million (1H19: $5.1 million). Mr Borland said: “A change in customer purchasing behaviour due to
COVID-19 brought orders forward in the first six months of the year, with a resulting 14 per cent
increase in volumes sold compared to 1H19. In particular, Shelby was able to take advantage of
trading opportunities in the USA, supporting our strategy of geographical and protein diversification.”

Logistics traded in line with 1H19, with an Underlying EBITDA of $3.2 million (1H19: $3.1 million).
The division benefitted from exposure to the agribusiness sector.

Outlook

Mr Goodacre noted “We continue to anticipate that our full year Underlying Net Profit will be at the
bottom end of our previously advised guidance range of between $30.0 million and $36.0 million
4
,
taking into account the impact that COVID-19 has had, and continues to have, on each of our
businesses. However, our balance sheet remains strong and we continue to seek appropriate
investment opportunities.”

Scales dividend policy is for interim and final dividends to be split approximately evenly and paid in
January and July. Scales remains committed to its current annual dividend level of no less than
19 cents cash per share whilst the company holds Net Cash.

About Scales Corporation
Scales Corporation is a diversified agribusiness portfolio. It comprises three operating divisions:
Horticulture, Food Ingredients and Logistics. The company’s diverse spread of activities gives Scales
broad exposure to the agribusiness sector. Scales Corporation was founded in 1897 as a shipping
business by George Herbert Scales. Today it has operations across New Zealand, Australia and the
USA. Find out more at www.scalescorporation.co.nz.

Contact
Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021 975 999, email:
andy.borland@scalescorporation.co.nz

4
Before the deduction of Non-Controlling Interests

---

HalfYearResults
For the six months ended 30 June 2020
26 August 2020
Scales Corporation Limited
Growing Your Diversified Agribusiness
Half Year Results
For the Six Months Ended 30 June 2020
26 August 2020

2
Scales Corporation Limited –2020 Half Year Results
1. COVID-19 Update
2. Financial and Operating Summary
3. Sustainability
4. Group Results
5. Divisional Performance
6. FY20 Outlook
Appendices:
I. NZ IFRS Reconciliation
II. Disclaimer
Agenda

COVID-19 Update

4
Built to Weather a Pandemic Storm
Scales Corporation Limited –2020 Half Year Results
Strong business foundations served us well
Courageous, hard-working and inspirational team
Diversified geographical and operational businesses
Essential businesses, supplying the world with nutritious food and petfood
Full vertical integration 
Strong financial position
People-first safety culture, optimising health and safety outcomes for our teams

5
COVID-19 – Focused on Safety
•Priority on minimising risk to, and supporting, team members:
Ensured safe working environment.
Staff worked from home where possible.
Full salaries and wages retained, without use of government subsidies.
Financial impact on cost and productivity.
•Active involvement at government level to assist vital Recognised Seasonal Employer (RSE) workers:
Assisted with ongoing work and overall welfare until repatriated.
Future quota for, and sustainability of, the scheme.
Scales Corporation Limited –2020 Half Year Results
Our people were our first priority

6
COVID-19 – Trading Through the Alert Levels
•Business continuity made possible by outstanding leadership effort and teamwork of all staff:
Lockdown occurred during crucial apple harvest period, requiring quick reaction.
Confident and decisive strategic decisions made.
•Implemented protocols quickly, including compliance with MPI best practice.
•Rapid and effective adjustment to new market conditions, aided by:
Diversified nature of businesses and markets.
Sufficient available resource.
Scales Corporation Limited –2020 Half Year Results
Scales’ businesses occupied the privileged position of being ‘essential’

7
Proactive Response to COVID-19
•Uncertainty in global markets over the impact and duration of COVID-19.
•All businesses continue to maintain elevated hygiene practices.
•Pandemic preparedness policies updated to allow a smooth and immediate transition to lockdown, if
required.
•Working closely with MPI and government around continuity of RSE scheme for 2021 season.
•Taking a proactive, but cautious, approach to potential investment opportunities.
•Notwithstanding the current COVID-19 outbreak in Auckland, all businesses continue to operate within
their ‘new normal’ practices.
Operating in a ‘new normal’
Scales Corporation Limited –2020 Half Year Results

Financial and
Operating Summary

9
Financial and Operating Summary
•Reported NPAT of $27.8m (1H19: $121.8m).
•Underlying
*
NPAT of $29.2m (1H19: $30.1m), down 3.2% on 2019.
•Underlying
*
EBITDA of $44.4m(1H19: $47.3m), a strong result during a global pandemic.
•Divisional earnings mix differs from prior years.
•Record export volumes for Mr Apple, with 3.9 million TCEsexported:
Due to later season packout performance, export packout rate approximately 76%.
Sufficient resource available for harvest, packing, cool storage and shipping.
Timing and impact of COVID-19 has disrupted normal supply and demand rates for Asia and near markets in particular.
Diversified markets and varieties helped to mitigate effects.
•Food Ingredients global demand remained strong:
Benefitted from increased pet food demand during lockdown.
* Underlying Results exclude some New Zealand International Financial Report Standards (NZ IFRS) non-cash and other adjustments. Management and the Board believe that Underlying Results more
accurately demonstrate the change in operational performance of the Group. Underlying Results are shown before the deductionofshare of NPAT for Non-Controlling Interests (Fern Ridge and Shelby) of
$2.4m (1H20) vs $1.7m (1H19). Underlying Results for 2019 include only 50% of earnings from Meateor’s NZ business and operations from 1 April 2019. A reconciliation of Underlying to Reported
Measures is provided in Appendix I.
Scales Corporation Limited –2020 Half Year Results

Sustainability

11
Sustainability Update
COVID-19
•Continued to run the business effectively across all sites during times of peak harvest and production.
•Wages and salaries maintained.
•Ongoing supply of fresh apples into national foodbank networks.
Our environment
•Continued focus at Mr Apple on reducing fuel, electricity, waste to landfill, and paper use.
•Large gains in reducing waste to landfill:
New initiatives found for recycling or diverting waste, e.g. balers purchased for packhouses to bundle black plastic wrap which is now collected
and recycled.
Scales Logistics measuring waste to landfill and maximising recycling opportunities with local providers.
•Climate change adaptation project underway:
4% reduction already in Mr Apple’s carbon emissions (first two years).
Introduction of Task Force on Climate-related Financial Disclosures (TCFD) disclosures into future annual reports.
Operating in a COVID-19 environment
Scales Corporation Limited –2020 Half Year Results
•We continue to carefully manage, monitor and protect our valuable water right resources,
which remain adequate for the business.

12
People and Governance
More than ever, it’s all about our people
Scales Corporation Limited –2020 Half Year Results
Health and safety
•Focus for 2020/2021 on critical risks, with ongoing awareness training and a continual improvement focus
throughout all sites.
•3 year health and safety strategy developed for Mr Apple and Scales Logistics:
All on track to achieve quarterly milestones.
Governance and compliance
•Various policies updated:
Anti-fraud, bribery & corruption; travel & expenses; gifts, entertainment & hospitality.
Privacy / sensitive information, in relation to the new Privacy Act, to be updated in 2H20.
•Pay equality review being completed throughout all business units.
•Report it Now whistle-blower line well-known throughout the business and included in all staff inductions.
•Imminent launch of intranet for the Board and Senior Management, to allow easier access to all policies and
governance requirements.

Group Results

14
Group Financial Performance
•Solid Underlying NPATof $29.2m (1H19: $30.1m) and EBITDA of $44.4m (1H19: $47.3m).
Solid Underlying earnings
Scales Corporation Limited –2020 Half Year Results
Income Statement
NPATEBITDA
$m1HY20 1HY19% chg.1HY20 1HY19% chg.
Underlying29.2 30.1-3.2%44.4 47.3-6.3%
NZ IFRS & other adjustments:
Gain on sale of Polarcold - 73.0 - -
Fair value gain on recognition of investment in joint venture - 10.1 - 10.1
Gain on disposal of Meateor New Zealand business - 10.1 - 10.1
NZ IFRS 16 Leases(0.3) (0.4)5.0 5.0
Other NZ IFRS adjustments(1.1) (1.2)(1.0) (1.4)
Reported27.8 121.8 -77.2% 48.4 71.1 -31.9%
Notes:
1. %'s are calculated based on non-rounded figures, figures may not sum due to rounding.
2. Earnings are shown before the deduction of share of NPAT for Non-Controlling Interests (Fern Ridge and Shelby) of $2.4m (1H20) vs $1.7m (1H19).

15
Divisional Overview
•Horticulture –record export crop, with strong sales into Europe. Sales patterns in Asia and near markets
adversely affected by COVID-19 lockdowns.
NZ IAS 41 Agriculturerequires unsold agricultural produce to be measured at fair value less costs to sell. This means that the
expected profit on our unsold fruit is recognisedin our interim result, giving rise to seasonality in profitability as shown below.
•Food Ingredients –strong 1H20 demand as customers brought forward orders to shore-up supply lines.
•Logistics –trading in line with prior period.
Divisional earnings impacted by COVID-19
Scales Corporation Limited –2020 Half Year Results
Divisional Performance
% chg.
$m1H20 1H19 2H19 FY19 1H20 v 1H19
Horticulture32.4 41.3 (1.6) 39.7-21.5%
Food Ingredients11.05.1 8.4 13.5116.4%
Logistics3.23.1 0.3 3.34.6%
Corporate(2.2) (2.1) (1.7) (3.7)6.9%
Underlying EBITDA44.4 47.3 5.4 52.7-6.3%
Underlying NPAT29.2 30.1 6.3 36.4-3.2%
Notes:
1. Prepared on an Underlying basis. A reconciliation to NZ IFRS is provided in the Appendices.
2. %'s are calculated based on non-rounded figures, figures may not sum due to rounding.

16
Balance Sheet
•Net Cash of $54.8m at 30 June 2020 vs $59.0m at 30 June
2019.
•Increase in agricultural produce due to unsold fruit at 30
June 2020:
As at 30 June 2020, 51% of crop sold (30 June 2019: 59%).
As of today, approximately 20% of crop unsold.
•Dividends will continue to be paid at current levels whilst
Scales holds net cash.
Well capitalised financial position
Scales Corporation Limited –2020 Half Year Results
Balance Sheet
$mJun-20 Jun-19 Dec-19
Current assets excluding cash
Trade & other receivables86.6 94.9 20.6
Inventories26.4 34.0 26.4
Agricultural produce75.8 59.1 21.6
Other9.5 8.3 8.2
Current Assets 198.3 196.3 76.9
Current liabilities excluding overdraft,
borrowings, and dividends declared
Trade & other payables(72.5) (63.4) (19.8)
Lease liability(9.5) (9.2) (9.4)
Other(20.2) (23.6) (7.2)
Current Liabilities(102.2) (96.3) (36.5)
Net Working Capital96.1 100.0 40.4
Non-current assets
Property, plant & equipment167.4 146.7 165.7
Other non-current assets83.0 75.0 76.7
Right of use asset77.5 80.5 78.8
Non-Current Assets327.9 302.1 321.2
Capital Employed424.0 402.2 361.6
Non-current and other liabilities
Deferred tax liabilities(14.4) (10.5) (19.4)
Other financial liabilities(5.1) (5.5) (4.0)
Dividends declared(13.4) (13.3) (13.3)
Lease liability(69.8) (71.7) (70.7)
Non-current and other liabilities(102.6) (101.1) (107.4)
Net cash
Cash less overdraft112.0 123.8 159.4
Borrowings(57.2) (64.8) (54.6)
Net cash54.8 59.0 104.9
Total Equity376.2 360.1 359.0

Divisional Performance

18
Horticulture – Volumes
•Record Mr Apple total own grown export volumes of 3.9m TCEs:
Export packout of approximately 76% (2019: 79%).
•6% increase in Premium Variety volumes:
Significant increases in Dazzle
TM
and Posy
TM
sales.
2020 volumes ahead of forecast, markets mixed
Scales Corporation Limited –2020 Half Year Results
Mr Apple Own Export Volumes (TCE 000s)
Growth in Premium Volumes (TCE 000s)
741
1,059
1,036
1,454
1,656
1,616
1,887
2,095
2,211
1,404
1,773
1,716
1,701
1,890
1,929
1,975
1,727
1,693
2,144
2,833
2,752
3,155
3,546 3,545
3,862
3,822
3,905
2012 2013 2014 2015 2016 2017 2018 2019 2020F
Premium VarietiesTraditional Varieties
134
214
343
406
455
538
534
185
245
245
282
301
253
359
378
401
393
585
574
831
866
809
961
987
1,008
147
148
112
192
268
741
1,059
1,036
1,454
1,656
1,616
1,887
2,095
2,211
2012 2013 2014 2015 2016 2017 2018 2019 2020F
NZ QueenPink LadyHigh Colour Fuji and Royal GalaOther

19
Horticulture – Markets
Benefited from geographical and channel diversification
Scales Corporation Limited –2020 Half Year Results
* Charts above refer to Mr Apple export volumes only. Actual sales by region will not finally be known until all fruit is sold.
Sales to Asia and Middle East are predominantly in USD, North American sales are in CAD and USD, UK and Europe sales predominantly in their respective currencies.
Sales by Region (TCEs) FY19Sales by Region (TCEs) FY18Sales by Region (TCEs) FY20F*
•Sales to date approximately 80% of packed export volume.
•European and UK market providing positive returns:
Increased throughput of produce.
Demand strong for some traditional varieties.
•Impact on volumes and prices in Asia and Middle East (in particular China) due to:
Timing of lockdowns and resultant impact on logistics and purchasing patterns.
Delay in release of produce from coolstores during lockdown.
Economic impact of COVID-19 on consumers.
•Fern Ridge Fresh continues to perform well, providing alternative export channels for apple, pear and
kiwifruit growers.
Europe
34%
North
America
4%
UK
9%
Asia &
Middle East
53%
Europe
21%
North
America
2%
UK
11%
Asia &
Middle East
66%
Europe
24%
North
America
3%
UK
13%
Asia &
Middle East
60%

20
Horticulture – Margin Analysis
•Comprehensiveinternal review of profit margins performed:
The Horticulture industry has experienced margin compression in recent years.
Mr Apple has measured a 4% EBIT margin decline over the 2015 –2019 period.
This decline reflects an increase in costs (predominantly labour), marginally offset
by orchard gate returns (sales price adjusted for FX rates and shipping costs).
Increases in labour cost and compliance account for the majority of expense
growth.
•The company acknowledges headwinds in margins and is focused
on initiatives to maintain current margins:
>140 ha of orchards have been planted / redeveloped between 2018 and 2020,
predominantly in Dazzle. Better yield per hectare and higher premium prices for
these apples is expected to lift margins as these orchards approach maturity
(2023 onwards).
New planting techniques, adopted in recent years, significantly change orchard
management. The new ‘2-dimensional’ structure will be more efficient to prune,
thin, and pick from maturity (2023 onwards).
The new Whakatucoolstorewill improve logistics and operating efficiencies when
it is operational (expected for the 2021 season).
A comprehensive orchard and varietal review will see a number of
underperforming varieties replaced in the near term by higher value and better
yielding varieties.
Analysis undertaken of recent margin trends
Scales Corporation Limited –2020 Half Year Results
Traditional planting techniques -greater spacing
(~800 trees / ha), ‘3-dimensional’ surface
Newer planting techniques –planted closer
(~2,500 trees / ha), ‘2-dimensional’ surface

21
Horticulture – Margin Analysis (Continued)
•FY20 EBIT margins will below recent years predominantly due to price pressures in Asian markets.
•We expect these factors to be temporary and for margins to return to normal levels in FY21. These
dynamics together with margin initiatives explained on the previous page see margins broadly remaining
at FY19 levels through our forecast period:
FY20 margins impacted by short-term industry factors before returning to normal levels
Scales Corporation Limited –2020 Half Year Results
Mr Apple EBIT Margins* through time
* Historical results have been adjusted to remove hail insurance proceeds in 2015.
0%
5%
10%
15%
20%
25%
2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F

22
Food Ingredients - Performance
•Excellent first half trading, Underlying EBITDA $11.0m (1H19: $5.1m):
14% increase in volumes sold compared to 1H19.
Change in customer purchasing behaviour due to COVID-19, orders brought forward.
Advantage taken of trading opportunities, particularly in the USA.
•COVID-19 impact on the industry remains uncertain, but will likely
include / be influenced by:
Supply chain changes.
Move from retail to e-commerce distribution channels.
Increased levels of pet adoption and fostering immediately prior to global lockdowns
*
.
•Actively reviewing opportunities to expand product range:
Added-value and functional petfoods.
Other protein and by-product opportunities in the USA.
Strong global petfood demand
Scales Corporation Limited –2020 Half Year Results
Meateor Group – Total Volumes Sold (MT 000s)
12.0
12.9
16.0
56.1
63.7
1H161H171H181H191H20
•Profruit fruit benefited from high fruit brix and
exceptional yields:
Sales ahead of 1H19 and expectations.
* https://www.cnbc.com/2020/04/11/coronavirus-increased-pet-adoptions-now-rescuers-face-
new-challenges.html

23
Logistics - Performance
•Freight volumes benefitted from exposure to agribusiness customers:
•Air freight capacity and pricing affected by COVID-19:
Valuable support by Government and industry should ensure capacity available for upcoming seasonal shipments.
•Combined sea and air freight business to be rebranded together as ‘Scales Logistics’.
Steady performance by logistics businesses
Scales Corporation Limited –2020 Half Year Results
Scales Logistics Underlying EBITDA ($m)
2.3
2.5
2.9
3.1
3.2
1H161H171H181H191H20

FY20 Outlook

25
•Full year Underlying Net Profit
*
expected at the bottom end of previously advised guidance of between $30.0m
and $36.0m.
•Horticulture:
Ongoing disruption in global markets, with approximately 20% remaining to be sold and final wash-up payments to be determined.
•Food Ingredients:
Full year performance projected to be ahead of expectations, with a good portion of 1H20 over-performance retained.
•Logistics:
Full year results in line with expectations due to positive volumes from agribusiness customers to date.
•Initiatives in relation to investment opportunities hampered by inability to travel.
Full Year Outlook for 2020
Uncertainty remains for full year result
Scales Corporation Limited –2020 Half Year Results
*
Prior to Non-Controlling Interests.

Appendices

27
Appendix I – NZ IFRS Reconciliation
Scales Corporation Limited –2020 Half Year Results
Reconciliation of Divisional Underlying Profitability to Reported Profitability
$m1H20 1H191H20 1H191H20 1H191H20 1H191H20 1H19
Underlying / Reported Revenue253.3 278.0 136.3 159.584.1 80.750.3 54.8(17.4) (17.1)
EBITDA Reconciliation
Underlying EBITDA44.4 47.332.4 41.311.05.13.23.1(2.2) (2.1)
NZ IFRS & other adjustments:
Fair value gain on recognition of investment in joint venture - 10.1 - - - 10.1 - - - -
Gain on disposal of Meateor New Zealand business - 10.1 - - - 10.1 - - - -
NZ IFRS 16
Leases
5.05.04.64.50.00.00.40.40.00.0
Change in fair value gain on apple inventory(0.4) (0.7)(0.4) (0.7) - - - - - -
Change in gross liability for non-controlling interests(0.1) - - - (0.1) - - - - -
Share based payments - (0.0) - - - - - - - (0.0)
Equity settled employee benefits(0.3) (0.4) - - - - - - (0.3) (0.4)
Transaction costs(0.2) (0.3) - - - - - - (0.2) (0.3)
Intercompany transactions with discontinued operations - 0.0 - 0.3 - 0.2 - - - (0.5)
Reported EBITDA48.4 71.136.6 45.410.9 25.63.63.4(2.6) (3.3)
EBIT Reconciliation
Underlying EBIT38.9 42.327.7 36.910.54.52.92.9(2.2) (2.1)
NZ IFRS & other adjustments:
Fair value gain on recognition of investment in joint venture - 10.1 - - - 10.1 - - - -
Gain on disposal of Meateor New Zealand business - 10.1 - - - 10.1 - - - -
NZ IFRS 16
Leases
1.11.01.00.90.00.00.10.10.00.0
Change in fair value gain on apple inventory(0.4) (0.7)(0.4) (0.7) - - - - - -
Change in gross liability for non-controlling interests(0.1) - - - (0.1) - - - - -
Share based payments - (0.0) - - - - - - - (0.0)
Equity settled employee benefits(0.3) (0.4) - - - - - - (0.3) (0.4)
Transaction costs(0.2) (0.3) - - - - - - (0.2) (0.3)
Intercompany transactions with discontinued operations - 0.0 - 0.3 - 0.2 - - - (0.5)
Reported EBIT39.0 62.128.3 37.510.3 25.03.13.0(2.7) (3.4)
NPAT Reconciliation
Underlying NPAT29.2 30.119.6 26.58.74.12.12.1(1.3) (2.6)
NZ IFRS & other adjustments:
Gain on sale - Polarcold - 73.0 - - - - - - - 73.0
Fair value gain on recognition of investment in joint venture - 10.1 - - - 10.1 - - - -
Gain on disposal of Meateor New Zealand business - 10.1 - - - 10.1 - - - -
NZ IFRS 16 Leases(0.3) (0.4)(0.3) (0.3)(0.0) (0.0)(0.0) (0.0)(0.0) (0.0)
Change in fair value gain on apple inventory(0.4) (0.7)(0.4) (0.7) - - - - - -
Change in gross liability for non-controlling interests(0.1) - - - (0.1) - - - - -
Share based payments - (0.0) - - - - - - - (0.0)
Equity settled employee benefits(0.3) (0.4) - - - - - - (0.3) (0.4)
Transaction costs(0.2) (0.3) - - - - - - (0.2) (0.3)
Intercompany transactions with discontinued operations - 0.0 - 0.3 - 0.2 - - - (0.5)
Tax effect of other NZ IFRS adjustments(0.1) 0.20.10.2(0.2) - - - 0.00.0
Reported NPAT27.8 121.819.1 26.08.4 24.62.12.1(1.8) 69.1
GroupHorticultureFood IngredientsLogisticsCorporate & Eliminations

28
Appendix II - 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 (including, without limitation, arising from any fault or
negligence) arising from this presentation or any information supplied in connection with it.
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. 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 Scales Corporation 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 charges / (revenue), and taxation expense to net earnings / (loss) from
continuing operations.
•EBIT. We calculate EBIT by adding back (or deducting) finance charges / (revenue), and taxation expense to net earnings / (loss)from continuing operations.
•Underlying EBITDA and EBIT are calculated by adding back (or deducting) certain non-cash NZ IFRS and other adjustments.
•Underlying Net Profit is calculated by adding back or (or deducting) the after-tax effect of certain non-cash NZ IFRS and other adjustments.
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position or returns,
but that they should not 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.
Forward-looking statements are subject to any material adverse events, significant one-off expenses or other unforeseeable circumstances.
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.
Scales Corporation Limited –2020 Half Year Results

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Results announcement




Results for announcement to the market
Name of issuer Scales Corporation Limited
Reporting Period 6 months to 30 June 2020
Previous Reporting Period 6 months to 30 June 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$253,292 -9%
Total Revenue $253,292 -9%
Net profit/(loss) from
continuing operations
$27,773 -43%
Total net profit/(loss) $27,773 -77%
Interim/Final Dividend
Amount per Quoted Equity
Security
N/A
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.33 $2.23
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the attached reports for commentary and
unaudited condensed consolidated interim financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Steve Kennelly
Contact person for this
announcement
Steve Kennelly
Contact phone number +64 3 3712263
Contact email address steve.kennelly@scalescorporation.co.nz
Date of release through MAP

26/08/2020

Unaudited financial statements accompany this announcement.