BEGA CHEESE LIMITED — AGM Information 2012

Oct 30, 2012

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Bega Cheese Limited
AGM - 2012
Co-Manager
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2012 Annual General Meeting

Executive Chairman Barry Irvin AM

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• 2012 Annual Report

– Executive Chairman’s Report

– Chief Executive Officer’s Report

• Questions

• Approval of Remuneration Report

• Election of Directors

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• Shareholders

• Suppliers

• Pricewaterhouse Coopers

• Addisons

• Bega Cheese Staff

• Apologies

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2012 Annual Report

Executive Chairman’s Report Barry Irvin AM

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• Successful ASX listing of Bega Cheese

• Tatura Milk merger completed

• Long term supply partnership with Coles for Australian origin cheese products

• Creation of new management team

• Maintaining existing knowledge and experience

o Adding new skills and approach

• Solid financial outcomes

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2012 Results Highlights*

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• EBITDA increase 9% to $57m

• PBT increase 23% to $27m

• EPS down 18% - reflects issues of new share capital and changed tax status of TMI

• Final dividend of 3.5 cents per share fully franked (Total dividend attributable to 2012 6.5cps)

• Increase in total production of 9% to 203,765t

• Milk intake increase 23% to 638m litres

*Comparison to prior corresponding period

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BEGA CHEESE LIMITED 2012 ANNUAL GENERAL MEETING| PAGE 8

Group Balance Sheet Extract

	2012	2011
	$ m	$ m
Trade and other receivables	95.8	83.3
Inventories	162.7	104.6
Investments	30.9	37.0
Property, plant & equipment	204.6	197.9
Total Assets	516.0	462.1
Trade and other payables	130.9	117.9
Borrowings *	114.8	116.3
Total Liabilities	269.5	256.6
Net Assets	246.4	205.5

*Net debt 2012 actual $108.8m (2011 - $95.7m)

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Bega Tatura Strathmerton Coburg

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Market Profile

Asian infant formula demand

Asian cream cheese demand (tonnes)

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Tonnes
1,000,000
500,000
0
2008 2009 2010 2011
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Tonnes
105,000
100,000
95,000
90,000
85,000
2008 2009 2010 2011
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Source: Euromonitor International 2011
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Source: Proteus Insight Ltd./Dairy Australia

International private label developments

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Source: Dairy Australia
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Global dairy demand

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BEGA CHEESE LIMITED 2012 ANNUAL GENERAL MEETING| PAGE 13

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• Maximise utilisation of current asset base and customer opportunity

• Optimise value of milk components

• Protect and improve pre-eminent position in packaging of Australian retail cheese

• Increase global presence in cream cheese and dairy nutritionals

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BEGA CHEESE LIMITED 2012 ANNUAL GENERAL MEETING| PAGE 15

2012 Annual Report

Chief Executive Officer’s Report

Aidan Coleman

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	2012 $ m	2011 $ m	%
Sales Revenue	927	932		0.5
EBITDA	57	52		9.0
EBIT	36	31		15.0
NPBT	27.1	22.1		23.0
Tax	(0.4)	(6.7)
NPAT	20.4	21.7		6.0

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Direct supplier intake	2011/2012 million litres
Bega & Southern NSW	161
Gippsland & Western VIC	120
Tatura & Northern VIC	357
Total	638

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Group Cash Flows

	2012 $ m 2011 $ m
Receipts from customers	945.6 980.2
Payments to suppliers	(944.3) (893.9)
	1.3 86.3
Interest and other costs of financing paid	(8.8) (8.9)
Income taxes paid	(3.0) (3.6)
Operating activities	(10.5) 73.8
Investing activities	(30.1) (46.2)
Financing activities	23.0 (25.2)
Net (decrease)/increase in cash and cash equivalents	(17.7) 2.4

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Best Workplace Health and Safety Management System at the 2012 New South Wales Worksafe Awards

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Pictured with the Award from left to right are, Matthew Mason -Cox, Parliamentary Secretary for Treasury and Finance; John Gardner, Health and Safety Manager, David McKinnon, General Manager Human Resources, Claire Tandy, OHS Co-ordinator; Wendy Abraham, OHS Support Officer; and John Watson, General Manager Work Health and Safety, Workcover NSW.

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BEGA CHEESE LIMITED 2012 ANNUAL GENERAL MEETING| PAGE 25

Thank You

Chief Executive Officer’s Report

Aidan Coleman

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Formalities and Voting Barry Irvin AM

Executive Chairman

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• Pages 18 – 28 of Annual Report

• Board, Executive and key management personnel

• Market data and external advisors

• No change to Director’s fees

Resolution

Adopt remuneration report for the year ended 30 June 2012

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Proxies

• Total votes – 27,508,472 (18.11%)

• For – 24,061,045 (87.47%)

• Open – 3,198,894 (11.63%)

• Against – 248,533 (0.9%)

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• Barry Irvin

• Rick Cross

• Jeff Odgers

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Barry Irvin

• Total votes – 28,195,775 (18.57%)

• For – 25,029,143 (88.77%)

• Open – 2,851,321 (10.11%)

• Against – 315,311 (1.12%)

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Rick Cross

• Total votes – 28,181,003 (18.56%)

• For – 24,733,696 (87.77%)

• Open – 3,321,807 (11.79%)

• Against – 125,500 (0.45%)

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Jeff Odgers

• Total votes – 28,195,275 (18.57%)

• For – 24,656,287 (87.45%)

• Open – 3,321,557 (11.78%)

• Against – 217,431 (0.77%)

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Thank you

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Bega Cheese Limited advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside of Bega Cheese and its related entities.

No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based.

Actual future events may vary from these forward looking statements and you are cautioned not to place undue reliance on any forward looking statement.

Unless otherwise indicated, all references to estimates, targets and forecasts and derivations of the same in this material are references to estimates, targets and forecasts by Bega Cheese. Management estimates, targets and forecasts are based on views held only at the date of this material, and actual events and results may be materially different from them. Bega Cheese does not undertake to review the material to reflect any future events or circumstances.

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