Scales : 2016 Annual Shareholders Meeting addresses

Annual Shareholders' Meeting8 June 2016

SCALES CORPORATION - 2016 ANNUAL SHAREHOLDERS' MEETING

The attached presentation will be given at Scales Corporation Limited's Annual Shareholders' Meeting starting at 4.30pm today in the Savoy West Room, Rydges Latimer Christchurch, 30 Latimer Square, Christchurch

1. 2016 Scales Corporation Limited Annual Shareholders' Meeting - Chair and Managing Director's Address
2. 2016 Scales Corporation Limited Annual Shareholders' Meeting - Presentation

ENDS

Contacts

Andy Borland, Managing Director, Scales Corporation Limited, Mob: [phone], email:[e-mail]

About Scales Corporation

Scales Corporation is a diversified agribusiness group. It currently comprises three operating divisions: Horticulture, Storage & Logistics and Food Ingredients. The company's diverse spread of activities gives Scales broad exposure to New Zealand's agribusiness sector. Scales Corporation was founded in 1897 as a shipping business by George Herbert Scales. Today it employs more than 500 staff New Zealand wide. Find out more atwww.scalescorporation.co.nz.

Annual Shareholders' Meeting8 June 2016

Address by the Chair: Jon Mayson [SLIDE 2: AGENDA]

Good afternoon, my name is Jon Mayson. I'm Chairman of Scales and it's my pleasure to welcome you all to this, the one hundred & fourth annual meeting of the company and the second annual meeting since Scales became a publicly listed company in July 2014.

Some housekeeping matters before we start. Firstly, I would like to remind you, as a matter of courtesy, to turn your mobile phones to silent. If there is an emergency and we need to leave the venue please do so through the marked exits. Hotel staff will be available to help us. The assembly point is the carpark.

I am pleased to confirm that we have a quorum and therefore declare the 2016 Annual Shareholders' Meeting of Scales Corporation Limited open.

The items of business for this meeting and the resolutions to be considered by shareholders are contained in the Notice of Meeting which was sent to shareholders on 19 May.

The order of proceedings today is that I will briefly comment on the highlights of the last 12 months followed by an address by Andy Borland, our CEO and Managing Director. We will then attend to the resolutions. While voting is taking place there will be an opportunity for you to ask questions. We will conclude with an opportunity for you to raise any matters of a general nature.

In terms of the formal business, we will cover each resolution in turn and invite questions specific to those items. It will

then be time to vote on the resolutions. that point in the agenda.

I will outline the process for the discussion an

voting on the resolutions at

At the close of the meeting we hope you will join us for afternoon tea.

I would like to introduce my fellow Directors - they are:

• Andy Borland, Managing Director;
• Tim Goodacre, an independent director;
• Nick Harris, also an independent director;
• Mark Hutton, Chair of Scales' Nominations and Remuneration Committee and and

• lso an independent director;

• Alan Isaac, Chair of Scales' Audit and Risk Management Committee and also an independent director

I would also like to note that members of Scales management and staff are in attendance as well as our external auditors, Deloitte, and our lawyers, Anthony Harper.

No apologies have been received to date. Do any shareholders have any apologies that they would like to have recorded?

[SLIDE 3: CHAIRMAN'S REVIEW]Last year was a landmark year for Scales with a number of highlights.

I would like to begin by acknowledging and welcoming China Resources as a significant minority shareholder in the company.

We are extremely pleased to have China Resources as a shareholder in Scales and today with us we have Mr Weiyong Wang, CEO of the company. They bring a wealth of experience across a broad range of industries, as well as bringing strong networks and connections to mainland China. We believe this to be an extremely positive development for the long-term success of Scales. In recognition of their shareholding, China Resources will be invited to appoint a Director to the Board and my fellow Directors and I look forward to their contribution. We will ask Wang to briefly introduce China Resources shortly.

At the same time we farewell Direct Capital as a shareholder. Direct Capital made a considerable contribution to the development of Scales during the period of their ownership. Whilst Direct Capital are no longer shareholders in Scales, we are extremely privileged to have Mark Hutton's ongoing contribution as a member of the Scales Board.

During 2015, Scales produced a record financial result that was materially up on previous results and on our IPO forecasts. This result was made possible by the tireless effort of the entire team and I would like to take this opportunity to acknowledge the contribution from all Scales team members in helping to deliver this outcome.

We have made a number of developments to progress the strategies within each division, and during 2015 we recorded growth in all three divisions of the company.

We take best-practice corporate governance very seriously at Scales. We continually think about Board composition, governance, and succession planning. With regard to this I would like to give notice that I will be standing down as Scales' Chairman at next year's Annual Meeting. In light of this Tim Goodacre has recently been appointed as Scales' Deputy Chairman. Tim brings a wealth of experience to Scales, and Chaired the Mr Apple Board prior to his appointment to the full Scales Corporation Board.

Also, this year we have embarked upon a number of initiatives to improve and evolve our governance, including:

• Participation in the Institute of Directors' Better Boards evaluation programme.
• Participation in the Institute of Directors' Future Director programme. Regarding to this programme we have recently appointed Liz Muller as our first Future Director.
• We have commenced the preparation of a Board skills matrix.

• Finally, I would like to acknowledge the commitment of the team to delivering on excellent shareholder communication. As a Board we are focused on providing comprehensive, transparent, and timely communications to our shareholders. To this end, we were extremely proud to be recognised as one of three finalists in the INFINZ Emerging Leaders Best Corporate Communicator of the Year award for 2015.We are now going to show a brief video introducing China Resources.[SLIDE 4: INTRODUCTION TO CHINA RESOURCES] - [video]I'd now like to invite Mr Weiyong Wang, CEO of China Resources Enterprise, to give a brief presentation on China Resources.Address by Mr Wang, China Resources[SLIDES 5-16: INTRODUCTION TO CHINA RESOURCES][Introductory comments from Mr Wang]Address by the Chair: Jon MaysonThank you Wang.I'll now invite Andy Borland to address you. At the conclusion of Andy's presentation we will move to the formal business of the meeting. While voting is taking place you will have an opportunity to ask questions. We please ask that if you have a question you save it for this time.Address by the Managing Director: Andy Borland[SLIDE 17: MANAGING DIRECTOR'S REVIEW]Thank you Jon, and good afternoon ladies & gentlemen. In this section of today's presentation, I will be covering:

• Key highlights from our 2015 year.
• Insight into the people of Scales and various Company initiatives.
• An update on our strategy.
• An update on Year to Date trading.
• And conclude by examining investor returns.

• [SLIDE 18: YEAR IN REVIEW]In this section we provide an update on the financial and operational highlights of the 2015 financial year.[SLIDE 19: OPERATIONAL HIGHLIGHTS]2015 marked a number of material operational highlights for the company. Some of these highlights include:

• A 19% increase in our coldstorage capacity to more than 720,000 cubic metres of temperature controlled warehousing space.
• Mr Apple's own grown export apple volumes were up 15% to 3.15 million cartons. This marked the achievement of a production target we had set down for 2018 three years ahead of schedule.
• Our own-grown premium apple volumes recorded a strong 40% growth to 1.45 million cartons, reflecting our historic investment in orchard redevelopment and ongoing investment in industry leading growing techniques.
• Our bulk liquid storage operation, Liqueo, secured a new long-term edible oil storage contract at Timaru for the next 20 years.
• Also in Liqueo, we completed the acquisition of an inland bulk liquid processing terminal at Napier - driving complementary revenues and cost savings in this company.