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>Visible Alpha has recently commenced consensus coverage of Scales (SCL).</li><li>The output reinforces our positive investment view, with our underlying NPAT forecasts ~+5%–7% ahead of consensus beyond FY25.</li><li>Our higher forecasts relative to consensus are almost purely driven by Horticulture margins. We remain attracted to SCL's: (1) solid EPS growth outlook (FY25–FY27 CAGR of ~+14%), (2) robust balance sheet, which provides Global Proteins M&amp;A optionality, (3) improving and solid returns on capital profile (~12% in FY24 to ~16% in FY27), which is aided by the capital light Global Proteins expansion, and (4) relatively undemanding valuation.</li></ul>

Visible Alpha has recently commenced consensus coverage of Scales (SCL).The output reinforces our positive investment view, with our underlying NPAT forecasts ~+5%–7% ahead of consensus beyond FY25.Our higher forecasts relative to consensus are almost purely driven by Horticulture margins. We remain attracted to SCL's: (1) solid EPS growth outlook (FY25–FY27 CAGR of ~+14%), (2) robust balance sheet, which provides Global Proteins M&amp;A optionality, (3) improving and solid returns on capital profile (~12% in FY24 to ~16% in FY27), which is aided by the capital light Global Proteins expansion, and (4) relatively undemanding valuation.

Scales Corp Ltd

Scales - Juiced Up