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) fifth earnings guidance upgrade in eight months reflects ongoing solid Horticulture pricing and fruit quality (previous assumptions were for moderation in both).</li><li>The upgrade has not materially changed our FY26+ earnings view, but the Horticulture strength highlights the upside potential in good years (we do not expect SCL to match FY25 Horticulture EBITDA until FY32) and points to further near-term upside.</li><li>We remain attracted to SCL’s: (1) earnings growth (FY26–FY28 EPS CAGR of ~+9%); (2) robust dividend (~5% gross yield); (3) near-term Horticulture upside; (4) long-term Global Proteins growth (organic and inorganic, given low single-digit market share); and (5) reasonable valuation at ~15x 12-month forward PE.</li></ul>

Scales’ (SCL) fifth earnings guidance upgrade in eight months reflects ongoing solid Horticulture pricing and fruit quality (previous assumptions were for moderation in both).The upgrade has not materially changed our FY26+ earnings view, but the Horticulture strength highlights the upside potential in good years (we do not expect SCL to match FY25 Horticulture EBITDA until FY32) and points to further near-term upside.We remain attracted to SCL’s: (1) earnings growth (FY26–FY28 EPS CAGR of ~+9%); (2) robust dividend (~5% gross yield); (3) near-term Horticulture upside; (4) long-term Global Proteins growth (organic and inorganic, given low single-digit market share); and (5) reasonable valuation at ~15x 12-month forward PE.

Scales Corp Ltd

Scales Core Strength