INGHAMS GROUP LIMITED

Inghams Group Limited (ACN: 162 709 506) and its controlled entities

Appendix 4D for the half year; 26 weeks ended 26 December 2020 (1H FY2021)

Results for announcement to the market

	1HFY21	1HFY20	Variance	Variance
	$'000	$'000	$'000	%
Revenue from ordinaryactivities	1,363,000	1,303,500	59,500	4.6%
Profit for the period after tax from ordinary activities
attributable to members	35,300	26,200	9,100	34.7%

Dividends

The directors have determined that subsequent to the half year end, a fully franked interim dividend of 7.5 cents per share totalling $27.9m will be paid on 8 April 2021. The dividend was not declared at 26 December 2020 and as such no provision has been recognised. The record date for this interim dividend will be 18 March 2021.

A fully franked final dividend in respect of FY20 of 6.7 cents per share was declared and paid in the period. Inghams Group Limited does not have a dividend reinvestment plan in operation.

Net tangible assets backing

At 26 December 2020, the net tangible asset backing per ordinary share was $0.39 per share, (28 December 2019: $0.41 per share).

Entities where control has been gained or lost

There were no entities acquired or disposed of during the current period. Harvey Farms (NZ) Pty Limited was deregistered in the previous corresponding period.

Associates

The Group has a 50% (1HFY20: 50%) investment in AFB International Pty Limited. The Group’s share of the results of this entity is not material to the Group’s results for the period or for the previous corresponding period.

This Appendix 4D should be read in conjunction with the Inghams Group Limited Interim Financial Report for the half year ended 26 December 2020.

Inghams Group Limited | Appendix 4D

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Inghams Group Limited ACN 162 709 506 Interim Financial Report For the half year ended 26 December 2020

Interim Financial Report for the half year ended 26 December 2020

Contents
Directors’report	4
Lead Auditors’Independence Declaration	6
Financial Statements	7
Consolidated income statement	7
Consolidated statement of comprehensive income	8
Consolidated statement of financial position	9
Consolidated statement of changes in equity	10
Consolidated statement of cash flows	11
Notes to the interim financial report	12
1 General	12
2 Segment information	13
3 Right-of-use assets	14
4 Assets classified as held for sale	14
5 Equity	14
6 Dividends	14
7 Contingent liabilities	15
8 Earnings per share	15
9 Trade and other payables	15
10 Borrowings	16
11 Events after the reporting period	16
Directors’declaration	17
Independent Auditor's report to the members	18

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Directors’ report

The directors of ASX-listed Inghams Group Limited (Ingham's or Company) and its controlled entities (the Group), present their report together with the consolidated interim financial report for the half year ended 26 December 2020 (1HFY21).

Principal activities

The principal activities of the Group during the year consisted of the production and sale of chicken and turkey products across its vertically integrated primary, free range, value enhanced, further processed and byproduct categories. Additionally, stockfeed is produced primarily for internal use but also for the poultry, pig and dairy industries.

Directors

The following persons were Directors of Inghams Group Limited during the period and until the date of this report:

Name	Role	Date of appointment
Peter Bush	Chairman	7 October 2016
Rob Gordon	Non-Executive Director	11 April 2019
Mike Ihlein	Non-Executive Director	16 April 2020
Jim Leighton	CEO & Managing Director	7 January 2019
Jackie McArthur	Non-Executive Director	18 September 2017
Helen Nash	Non-Executive Director	16 May 2017
Linda Bardo Nicholls AO	Non-Executive Director	7 October 2016
Andrew Reeves	Non-Executive Director	14 January2019

Operating and financial review

Financial information in the Operating and Financial Review is based on the consolidated interim financial statements.

1H FY21 net profit after tax (NPAT) of $35.3M was $9.1M higher than 1H FY20. The increase in NPAT was due to an improvement in underlying NPAT pre-AASB 16 (trading performance) of $4.5M, a reduction in the AASB 16 impact of $3.8M predominantly from a lower interest charge and a reduction in restructuring, impairment and loss on sale of assets on NPAT of $0.8M.

The trading performance in the half was supported by growth in core poultry of 4.0% v 1H FY20 and 5.6% v 2H FY20 reflecting the strengthening demand across most channels throughout the period following COVID-19 impacts. The business continued to cycle high grain prices as reflected in total poultry revenue which was up 6.1% from a 4.8% growth in total poultry volume, while external feed revenue was down 10.3% from a 13.3% decline in volume as external feed customers navigated COVID-19 challenges.

COVID-19 related panic buying and resilient market conditions enabled good progress to be made reducing the excess frozen poultry inventory by $42.3M, and as a result $3.7M was released from the obsolete stock provision. Operational efficiencies from continuous improvement initiatives further supported the 1H financial performance.

COVID-19 and Avian Influenza

Inghams operated as an ‘essential’ service provider during the COVID-19 lockdown periods, maintaining supply to our customer base and meeting the surges in demand that followed lockdown announcements. In the half, the Thomastown Further Processing facility in Victoria was affected by a COVID-19 shutdown, that closed the facility for 12 days from 22 July 2020 to 3 August 2020, which did not have a material impact to the 1H financial performance.

The Australian export market was partially closed in the 1H FY21 due to a series of outbreaks of Avian Influenza in Victoria. These were not at Inghams operated farms and the impact to the financials in the half was not material as export products have been diverted to other channels domestically.

Significant changes in the state of affairs

There were no significant changes in the nature of the Group's activities during the period.

Dividends

A fully franked final dividend in respect of FY20 of 6.7 cents per share was declared and paid in the period.

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Directors’ report (continued)

Significant events after the balance date

The directors of the Company are not aware of any other matter or circumstance not otherwise dealt within the financial report that significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs in the period subsequent to the half year ended 26 December 2020.

Lead auditor's independence declaration

The lead auditor's independence declaration required under section 307C of the Corporation Act 2001 is included on page 6.

Rounding of amounts

The amounts contained in this report and in the financial statements have been rounded to the nearest hundred thousand dollars unless otherwise indicated under the option available to the Group under ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 .

Signed in accordance with a resolution of the directors made pursuant to s298(2) of the Corporations Act 2001 .

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Peter Bush Chairman

Michael Ihlein Non-Executive Director

Sydney 19 February 2021

Inghams Group Limited

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Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Inghams Group Limited

I declare that, to the best of my knowledge and belief, in relation to the review of Inghams Group Limited for the half-year ended 26 December 2020 there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
ii. no contraventions of any applicable code of professional conduct in relation to the review.

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KPMG

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Julie Cleary

Partner

Sydney 19 February 2021

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation

Interim Financial Report for the half year ended 26 December 2020

Financial Statements

Consolidated income statement

For the half year ended 26 December 2020

26 December 2020 28 December 2019 *Notes* $000 $000	26 December 2020 28 December 2019 *Notes* $000 $000
	1,303,500 (600) (1,084,100) (78,300) (66,400)
Revenue 2 1,363,000 Other income/(loss) 100 Expenses Cost of sales (1,123,500) Distribution (83,300) Administration and selling (73,300)
Operating profit 83,000 Finance income and costs Finance income 200 Finance costs (33,500)	74,100 400 (37,900)
Net finance costs (33,300) Share of netprofit of associate 200	(37,500) 200
Profit before income tax 49,900 Income tax expense (14,600)	36,800 (10,600)
Profit for theperiod attributable to: Owners of Inghams Group Limited 35,300	26,200
Basic EPS (cents per share) 8 9.50 Diluted EPS(centsper share) 8 9.49	7.05 7.03

The above consolidated income statement should be read in conjunction with the accompanying notes.

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Financial Statements

Consolidated statement of comprehensive income

For the half year ended 26 December 2020

26 December 2020 28 December 2019 $000 $000	26 December 2020 28 December 2019 $000 $000
	26,200
Profit for theperiod 35,300
Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 200 Changes in the fair value of cash flow hedges 400 Tax on changes in fair value of cash flow hedges (100)	(700) (900) 300
Total items that may subsequently be reclassified toprofit or loss 500	(1,300)
Items that will not be reclassified to profit or loss Revaluation of land and buildings (1,600)	(900)
Total items that will not be reclassified toprofit or loss (1,600)	(900)
Total comprehensive income is attributable to: Owners of Inghams Group Limited 34,200	24,000

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Financial Statements

Consolidated statement of financial position

As at 26 December 2020

26 December 2020 27 June 2020 *Notes* $000 $000	26 December 2020 27 June 2020 *Notes* $000 $000
	134,200 202,600 120,700 217,000 12,300 3,700
ASSETS Current assets Cash and cash equivalents 90,500 Trade and other receivables 266,000 Biological assets 117,500 Inventories 191,000 Assets classified as held for sale 4 11,300 Current tax receivable –
Total current assets 676,300	690,500
Non-current assets Property, plant and equipment 454,300 Investments accounted for using the equity method 1,900 Receivables – Right-of-use assets 3 1,368,800	450,300 1,900 300 1,429,200
Total non-current assets 1,825,000	1,881,700
Total assets 2,501,300	2,572,200
LIABILITIES Current liabilities Trade and other payables 9 400,900 Current tax liability 2,300 Provisions 80,100 Derivative financial instruments 3,500 Lease liabilities 168,900	402,900 – 79,600 4,000 185,200
Total current liabilities 655,700	671,700
Non-current liabilities Trade and other payables 9 3,800 Borrowings 10 418,000 Provisions 26,400 Derivative financial instruments 4,300 Deferred tax liabilities 2,900 Lease liabilities 1,250,400	3,500 448,900 23,900 3,600 4,400 1,287,100
Total non-current liabilities 1,705,800	1,771,400
Total liabilities 2,361,500	2,443,100
Net assets 139,800	129,100
Equity Contributed equity 5 109,200 Reserves 26,000 Retained earnings/(accumulated losses) 4,600	109,200 25,700 (5,800)
Total equity 139,800	129,100

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Inghams Group Limited 9

Interim Financial Report for the half year ended 26 December 2020

Financial Statements

Consolidated statement of changes in equity

For the half year ended 26 December 2020

Attributable to owners of Inghams Group Limited	Attributable to owners of Inghams Group Limited	Attributable to owners of Inghams Group Limited	Attributable to owners of Inghams Group Limited	Attributable to owners of Inghams Group Limited
Retained Earnings Asset Contributed /(Accumulated revaluation Other Equity losses) reserve reserves Total Equity $000 $000 $000 $000 $000

Balance at 28 June 2020 109,200	(5,800)	10,500	15,200	129,100
Profit for the period – Other comprehensive income – Transfer to retained earnings –
	35,300	–	–	35,300
	–	–	500	500
	–	(1,600)	–	(1,600)
Total comprehensive income – Transactions with owners of the Company Dividends provided for or paid – Share based payment expense – Settlement of shareplan –	35,300	(1,600)	500	34,200


	(24,900)	–	–	(24,900)
	–	–	1,900	1,900
	–	–	(500)	(500)
– Balance at 26 December 2020 109,200	(24,900)	–	1,400	(23,500)
	4,600	8,900	17,100	139,800

Balance at 30 June 2019 109,100 20,300 11,400 23,700 164,500 Profit for the period – 26,200 – – 26,200 Other comprehensive income – – – (1,300) (1,300) Transfer to retained earnings – – (900) – (900)
Total comprehensive income – 26,200 (900) (1,300) 24,000 Transactions with owners of the Company Dividends provided for or paid – (39,100) – – (39,100) Share based payment expense – – – (1,100) (1,100) Amountspaid for shares – – – (3,400) (3,400)
– (39,100) – (4,500) (43,600) Balance at 28 December 2019 109,100 7,400 10,500 17,900 144,900

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Inghams Group Limited 10

Interim Financial Report for the half year ended 26 December 2020

Financial Statements

Consolidated statement of cash flows

For the half year ended 26 December 2020

26 December 2020 28 December 2019 $000 $000	26 December 2020 28 December 2019 $000 $000
	1,234,900 (1,064,500)
Cash flows from operating activities Receipts from customers (inclusive of GST) 1,310,000 Payments to suppliers and employees(inclusive of GST) (1,128,100)
181,900 Interest received 200 Income taxespaid (10,000)	170,400 400 (29,500)
Net cashprovided by operating activities 172,100	141,300
Cash flows from investing activities Capital expenditure (31,500) Proceeds from sale of assets held for sale/deposits received 1,100 Dividends received from investments 200	(40,500) 7,400 200
Net cash used in investing activities (30,200)	(32,900)
Cash flows from financing activities Repayment of borrowings (30,000) Dividends paid (24,900) Lease payments - principal (97,100) Lease payments - interest (25,900) Interest and finance charges paid (7,200) Proceeds from issue of shares – Amountspaid for shares (500)	– (39,000) (87,200) (30,600) (7,500) 100 (3,400)
Net cash used in financing activities (185,600)	(167,600)
Net decrease in cash and cash equivalents (43,700) Cash and cash equivalents at the beginning of the financial year 134,200 Effects of exchange rate changes on cash and cash equivalents –	(59,200) 134,500 (100)
Cash and cash equivalents at end ofperiod 90,500	75,200

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Inghams Group Limited 11

Interim Financial Report for the half year ended 26 December 2020

Notes to the interim financial report

1 General

(a) Basis of preparation and statement of compliance

This is the interim financial report for Inghams Group Limited (Ingham's or Company) and its controlled entities (the Group) and the Group's interest in equity accounted investments, for the 26 week period ended 26 December 2020 (the half year).

This interim financial report is:

to be read in conjunction with the annual report of the Group for the year ended 27 June 2020 and any public announcements made by the Company during the half year in accordance with the continuous disclosure requirements of the Corporations Act 2001 , and the Australian Securities Exchange listing rules;
a general purpose financial report;
prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting ;
prepared under the historical cost convention except for the following:
Financial assets and liabilities (including derivative instruments) and certain classes of property, plant and equipment measured at fair value; and
Assets held for sale - measured at the lower of cost and fair value less cost of disposal;
presented in Australian dollars, which is the functional currency of Ingham's, with all values rounded to the nearest hundred thousand dollars unless otherwise stated, in accordance with ASIC Corporations Instrument 2016/191 dated 1 April 2016.

The accounting policies adopted are consistent with those of the previous financial year.

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Notes to the interim financial report (continued)

2 Segment information

Description of segments

The Group's operations are all conducted in the poultry industry in Australia and New Zealand.

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the senior leadership team (the chief operating decision maker) in assessing performance and in determining the allocation of resources.

The Group’s operations in Australia and New Zealand are each treated as individual operating segments. The Chief Executive Officer and the senior leadership team monitor the operating results of its business units separately, for the purpose of making decisions about resource allocation and performance assessment.

Segment performance is evaluated based on earnings before interest, tax, depreciation and amortisation (“EBITDA”) and significant items. Inter-segment pricing is determined on an arm’s length basis and inter-segment revenue is generated from a royalty charge for the services provided by the Australian operation.

Allocation of assets and liabilities are not separately identified in internal reporting so are not disclosed in the note.

Australia New Zealand Consolidated 26 Dec 2020 26 Dec 2020 26 Dec 2020 $000 $000 $000	Australia New Zealand Consolidated 26 Dec 2020 26 Dec 2020 26 Dec 2020 $000 $000 $000	Australia New Zealand Consolidated 26 Dec 2020 26 Dec 2020 26 Dec 2020 $000 $000 $000
Poultry 1,090,200 Feed 69,800	166,000	1,256,200
	37,000	106,800
Total revenue from contracts with customers 1,160,000 Other income/(loss) 100 Inter segment revenue/expense 8,000	203,000	1,363,000
	–	100
	(8,000)	–
1,168,100 Adjusted operating expenses* (985,500) Share of netprofit of associate 200	195,000	1,363,100
	(162,200)	(1,147,700)
	–	200
EBITDA 182,800 Depreciation and amortisation	32,800	215,600
		(132,400)
EBIT Net finance costs		83,200
		(33,300)
Profit before tax		49,900

Adjusted operating expenses include cost of sales, distribution, selling and administration, excluding depreciation and amortisation.

	Australia	New Zealand	Consolidated
	28 Dec 2019	28 Dec 2019	28 Dec 2019
	$000	$000	$000
Poultry	1,023,500	161,000	1,184,500
Feed	79,500	39,500	119,000
Total revenue from contracts with customers	1,103,000	200,500	1,303,500
Other income/(loss)	(600)	–	(600)
Inter segment revenue/expense	8,900	(8,900)	–
	1,111,300	191,600	1,302,900
Adjusted operating expenses*	(937,100)	(160,700)	(1,097,800)
Share of netprofit of associate	200	–	200
EBITDA	174,400	30,900	205,300
Depreciation and amortisation			(131,000)
EBIT			74,300
Net finance costs			(37,500)
Profit before tax			36,800

Adjusted operating expenses include cost of sales, distribution, selling and administration, excluding depreciation and amortisation.

Inghams Group Limited 13

Interim Financial Report for the half year ended 26 December 2020

Notes to the interim financial report (continued)

3 Right-of-use assets

3 Right-of-use assets	3 Right-of-use assets	3 Right-of-use assets	3 Right-of-use assets
Land and Contract Equipment and Building Growers Motor Vehicle Total $000 $000 $000 $000
Balance at 27 June 2020 814,600 Additions – Re-measurements 12,200 Depreciation (34,700) Modification* 10,900 Net foreign currencymovement 100	601,600	13,000	1,429,200
	9,000	–	9,000
	11,800	100	24,100
	(66,100)	(3,900)	(104,700)
	–	–	10,900
	200	–	300
Balance at 26 December 2020 803,100	556,500	9,200	1,368,800

CPI increases to underlying lease payments during 1HFY21.

** A change in the scope of the lease that was not part of the original terms and conditions of the agreement.

4 Assets classified as held for sale

26 Dec 2020 27 Jun 2020 $000 $000	26 Dec 2020 27 Jun 2020 $000 $000
Assets classified as held for sale 11,300	12,300

The carrying amount represents a property currently marketed for sale by the Group. The Group has entered into a contract to sell this property in the second half of FY2021. The resulting Income Statement impact is yet to be finalised and is not expected to be material to the Group.

5 Equity

(a) Share capital

(a) Share capital	(a) Share capital	(a) Share capital	(a) Share capital
26 Dec 2020 27 Jun 2020 26 Dec 2020 27 Jun 2020 Shares Shares $000 $000
Ordinaryshares issued 371,679,601	371,679,601	109,200	109,200
(b) Movements in ordinary shares
Shares $000
Balance at 29 June 2019 371,679,601 109,200
Balance at 28 December 2019 371,679,601 109,200
Balance at 27 June 2020 371,679,601
			109,200
Balance at 26 December 2020 371,679,601			109,200

6 Dividends

(a) Ordinary shares

A fully franked final dividend in respect of FY20 of 6.7 cents per share was declared and paid in the period.

(b) Franking credits

(b) Franking credits	(b) Franking credits
26 Dec 2020 28 Dec 2019 $000 $000
Amount of Australian franking credits available for subsequent periods to the shareholders of Inghams GroupLimited 31,200	35,500

The ability to utilise the franking credits is dependent upon the ability to declare dividends in the future included in the above line. Franking credits of $16.0m (December 2019: $16.0m) are only available to be used under very limited and specific circumstances.

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Notes to the interim financial report (continued)

7 Contingent liabilities

Employee benefits

Certain recent court decisions, not involving Inghams, regarding the correct application of various employee entitlements may have a financial impact on the Group. The Group does not consider the majority of the principles relating to these Court decisions directly apply to the Group’s employment arrangements. No provision has therefore been recognised in relation to these matters at 26 December 2020.

Inghams is committed to ensuring its people are paid in accordance with their employment arrangements and the law and continues to monitor its practices, systems and processes.

Workers Compensation

State WorkCover authorities also require guarantees against workers' compensation self-insurance liabilities. The guarantee is based on independent actuarial advice of the outstanding liability. Workers' compensation guarantees held at each reporting date do not equal the liability at these dates due to the timing of issuing the guarantees.

The probability of having to make a payment under these guarantees is considered remote.

No provision has been made in the consolidated financial statements in respect of these contingencies, however provisions for selfinsured risks, which includes liabilities relating to workers' compensation claims, have been recognised in the Consolidated Statement of Financial Position at the reporting date.

8 Earnings per share

Basic EPS is calculated by dividing profit for the year attributable to ordinary equity holders of the Parent by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the Parent (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

The following table reflects the income and share data used in the basic and diluted EPS computations:

The following table reflects the income and share data used in the basic and diluted EPS computations:	The following table reflects the income and share data used in the basic and diluted EPS computations:
26 Dec 2020 28 Dec 2019 $000 $000
Earnings Profit attributable to ordinaryequityholders for calculatingbasic and diluted EPS calculations 35,300	26,200
Number of shares Number of ordinary shares '000 '000
Weighted average number of ordinary shares used in the calculation of basic EPS 371,500 Dilutive effect of share options 400	371,500 1,400
Weighted average number of ordinaryshares for diluted EPS 371,900	372,900
Basic EPS (cents per share) 9.50 Diluted EPS(centsper share) 9.49	7.05 7.03

9 Trade and other payables

9 Trade and other payables	9 Trade and other payables	9 Trade and other payables	9 Trade and other payables
26 Dec 2020 27 Jun 2020 Current Non-Current Total Current Non-Current Total $000 $000 $000 $000 $000 $000
Trade payables 247,200 Inventory procurement trade payable 123,900 Otherpayables 29,800	3,800	251,000	257,600 3,500 261,100 121,700 – 121,700 23,600 – 23,600
	–	123,900
	–	29,800
Trade and otherpayables 400,900	3,800	404,700	402,900 3,500 406,400

The Group has an inventory procurement trade payable with a third party financial institution, which is interest bearing. Trade bills of exchange are paid by the financial institution direct to the supplier and the Group settles the payable on extended payment terms. The amount utilised and recorded within trade and other payables at 26 December 2020 was $123.9m (27 June 2020: $121.7m).

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Notes to the interim financial report (continued)

10 Borrowings

Interest bearing loans

Interest bearing loans	Interest bearing loans	Interest bearing loans
Carrying amount Principal amount drawn Interest rate Maturity 26 Dec 2020 27 Jun 2020 26 Dec 2020 27 Jun 2020 $000 $000 $000 $000
Unsecured liabilities		200,000 Floating November 2021 200,000 Floating November 2022 50,000 Floating November 2021 – Floating November 2023 – Floating November 2024 – Floating November 2023
Tranche A – Tranche B – Tranche C – Tranche A 199,100 Tranche B 198,900 Tranche C 20,000	199,500 – 199,400 – 50,000 – – 200,000 – 200,000 – 20,000
Borrowings 418,000	448,900 420,000	450,000

Floating rates are at Bank Bill Swap Rate plus a predetermined margin.

An extension of the debt facility was completed during the period, which has resulted in the term of the facility being increased by 2 years.

Fair value

For external borrowings, the fair values are not materially different to their carrying amounts, since the interest payable on the borrowings is either close to current market rates or the borrowings are of a short-term nature. The Group has entered into interest rate swaps in relation to the interest payable.

11 Events after the reporting period

The directors of the Group are not aware of any other matter or circumstance not otherwise dealt within the financial report that significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs in the period subsequent to the half year ended 26 December 2020.

Inghams Group Limited

Interim Financial Report for the half year ended 26 December 2020

Directors’ declaration

In the opinion of the directors of Inghams Group Limited (the Company):
(a) The consolidated financial statements and notes set out on pages 7 to 16 are in accordance with the Corporations Act 2001 , including:
- (i) giving a true and fair view of the Group's financial position as at 26 December 2020 and of its performance for the financial half-year ended on that date, and
- (ii) complying with Australian Accounting Standard AASB134 Interim Financial reporting and the Corporations Regulations 2001 .
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

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Peter Bush Chairman

Michael Ihlein Non-Executive Director

Sydney 19 February 2021

Inghams Group Limited

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Independent Auditor’s Review Report

To the Shareholders of Inghams Group Limited

Conclusion

We have reviewed the accompanying Interim Financial Report of Inghams Group Limited.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the Interim Financial Report of Inghams Group Limited does not comply with the Corporations Act 2001 , including:

giving a true and fair view of the Group’s financial position as at 26 December 2020 and of its performance for the half-year ended on that date; and
complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

The Interim Financial Report comprises:

Consolidated statement of financial position as at 26 December 2020;
Consolidated income statement, Consolidated statement of comprehensive income, Consolidated statement of changes in equity and Consolidated statement of cash flows for the halfyear ended on that date;
Notes comprising a summary of significant accounting policies and other explanatory information; and
The Directors’ Declaration.

The Group comprises Inghams Group Limited (the Company) and the entities it controlled at the half year’s end or from time to time during the half-year.

The Interim Period is the 6 months ended on 26 December 2020.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation

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Responsibilities of the Directors for the Interim Financial Report

The Directors of the Company are responsible for:

the preparation of the Interim Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
such internal control as the Directors determine is necessary to enable the preparation of the Interim Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Review of the Interim Financial Report

Our responsibility is to express a conclusion on the Interim Financial Report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the Interim Financial Report does not comply with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 26 December 2020 and its performance for the Interim Period ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a Interim Financial Report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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KPMG

Julie Cleary

Partner

Sydney

19 February 2021

AI assistant

INGHAMS GROUP LIMITED — Interim / Quarterly Report 2021

65128_rns_2021-02-18_f3b4263f-970c-4844-93bc-87fda2966919.pdf