New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Scales’ (SCL) first-time FY26 guidance was exactly what we were looking for to support our positive investment thesis: (1) Shelby (SCL’s US pet food ingredients business, which is ~50% of group FY26 NPAT and its highest multiple-earnings stream) PBT growth is expected to be ~+16% vs FY25, which highlights the ramping up of SCL’s recent projects and essentially squashes the bear case that Shelby has struggled to grow over recent years; and (2) the solid Horticulture performance appears set to continue.</li><li>EBITDA guidance is NZ$129m–NZ$136m (FB prior of ~NZ$128m) and NPAT attributable to shareholders is NZ$50m–NZ$55m (FB prior of NZ$53.6m).</li><li>Consistent with history, we expect guidance is relatively conservative (the top end is essentially the midpoint).</li></ul>

Scales’ (SCL) first-time FY26 guidance was exactly what we were looking for to support our positive investment thesis: (1) Shelby (SCL’s US pet food ingredients business, which is ~50% of group FY26 NPAT and its highest multiple-earnings stream) PBT growth is expected to be ~+16% vs FY25, which highlights the ramping up of SCL’s recent projects and essentially squashes the bear case that Shelby has struggled to grow over recent years; and (2) the solid Horticulture performance appears set to continue.EBITDA guidance is NZ$129m–NZ$136m (FB prior of ~NZ$128m) and NPAT attributable to shareholders is NZ$50m–NZ$55m (FB prior of NZ$53.6m).Consistent with history, we expect guidance is relatively conservative (the top end is essentially the midpoint).

Scales Corp Ltd

Scales Consistent Delivery