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) has provided an underlying FY23 NPAT guidance range of NZ$14m-NZ$19m after previously withdrawing guidance (NZ$23.5m-NZ$28.5m) following the impact of Cyclone Gabrielle.</li><li>This is broadly in line with our current FY23 forecast of ~NZ$18m.</li><li>The announcement appears broadly positive, with a lower than expected proportion of trees requiring replacement (~2.5% of total planted area) which should be met within the company’s existing capex budget.</li></ul>

Scales (SCL) has provided an underlying FY23 NPAT guidance range of NZ$14m-NZ$19m after previously withdrawing guidance (NZ$23.5m-NZ$28.5m) following the impact of Cyclone Gabrielle.This is broadly in line with our current FY23 forecast of ~NZ$18m.The announcement appears broadly positive, with a lower than expected proportion of trees requiring replacement (~2.5% of total planted area) which should be met within the company’s existing capex budget.

Scales (SCL): Market Update and FY23 Revised Guidance

Scales Corp Ltd

Scales (SCL): Market Update and FY23 Revised Guidance