NZK lifts FY17 earnings guidance, reconfirms FY18 guidance

New Zealand King Salmon lifts FY2017 earnings guidance and reconfirms FY2018 guidance Due to strong ongoing market demand and continued positive fish performance, the directors of New Zealand King Salmon Investments Limited (New Zealand King Salmon, NZX and ASX:NZK) advise that Pro-Forma Operating EBITDA1 for the full financial year to 30 June 2017 is now forecast to be between $20.5m and $21.0m, an increase to the $19.2m forecast for the period in the Product Disclosure Statement registered for New Zealand King Salmon's initial public offering in September 2016 (PDS). Forecast FY2017 Pro-Forma Operating EBITDA excludes: o The $1.8m one-off supplier settlement gain (advised to the market in May 2017); o Costs of approximately $0.8m incurred to date in relation to the Ministry for Primary Industries' proposed salmon farm relocation process currently being worked through (as detailed in New Zealand King Salmon's FY2017 half year results presentation, these costs are being incurred on behalf of all stakeholders and are excluded from New Zealand King Salmon's Pro-Forma Operating results); and o One-off costs of $2.0m incurred by New Zealand King Salmon for its initial public offering completed in October 2016 (as detailed in New Zealand King Salmon's FY2017 half year results presentation and disclosed in the PDS). Following finalisation of the New Zealand King Salmon Group's 2018 budgets the directors confirm that, based on current market demand and fish performance expectations, New Zealand King Salmon continues to expect to meet the FY2018 forecast in the PDS, being Pro-Forma Operating EBITDA of $22.4m and NPAT of $14.1m for the year ending 30 June 2018. New Zealand King Salmon expects to release its results for the year ending 30 June 2017 prior to market open on 25 August 2017. Contacts: Grant Rosewarne, Managing Director and CEO, New Zealand King Salmon Investments Ltd email: grant.rosewarne@kingsalmon.co.nz About New Zealand King Salmon New Zealand King Salmon is the world's largest aquaculture producer of the premium King salmon species. We operate under our four key brands: Ora King, Regal, Southern Ocean, and Omega Plus, as well as the New Zealand King Salmon label. We have been growing and selling salmon to consumers for more than 30 years. Today we employ more than 400 people. More information can be found at www.kingsalmon.co.nz 1 Pro-Forma Operating EBITDA is a non-GAAP profit measure used by New Zealand King Salmon. In addition to the adjustments outlined above, Pro-Forma Operating EBITDA reverses out fair value gains associated with the revaluation of livestock pursuant to NZ IAS 41-Agriculture and NZ IAS 2-Inventory. The application of NZ IAS 41-Agriculture, and NZ IAS 2-Inventory effectively results in the New Zealand King Salmon Group recognising expected profits from the sale of livestock prior to sale. Other international listed salmon companies will typically present 'Operating' results which remove the impact of these gains or losses. New Zealand King Salmon therefore believes that Operating results enable a better comparison of financial performance between its peers and between periods. End CA:00303065 For:NZK Type:MKTUPDTE Time:2017-06-26 08:30:10