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) current share price suggests investors have a free option on horticulture recovery.</li><li>The likelihood of material permanent (Cyclone Gabrielle) damage to orchard trees has reduced relative to our previous expectations, and tailwinds in the pet industry should partially offset most margin pressures.</li><li>Operating drivers have become more complicated with new ventures and the highly discrete nature of contracts in the global proteins space, and this is likely to continue as SCL has dry powder for further acquisitions.</li></ul>

Scales' (SCL) current share price suggests investors have a free option on horticulture recovery.The likelihood of material permanent (Cyclone Gabrielle) damage to orchard trees has reduced relative to our previous expectations, and tailwinds in the pet industry should partially offset most margin pressures.Operating drivers have become more complicated with new ventures and the highly discrete nature of contracts in the global proteins space, and this is likely to continue as SCL has dry powder for further acquisitions.

Scales Corp Ltd

Scales: An Ap-Peeling Option