INGHAMS GROUP LIMITED — Investor Presentation 2021

Aug 19, 2021

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INGHAMS GROUP LIMITED 2021 Annual Results Presentation 20 AUGUST 2021

Important notice and disclaimer

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The material in this presentation is general background information about the activities of Inghams Group Limited (Ingham’s) and its subsidiaries (Ingham’s Group), and is current at the date of this presentation, unless otherwise noted.

It is information given in summary form and does not purport to be complete. It should be read in conjunction with the Ingham’s Group other periodic and continuous disclosure announcements lodged with the Australian Stock Exchange, which are available at www.asx.com.au. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate.

This presentation includes non-IFRS information including EBITDA, Underlying and Pre AASB 16 Leases, which Ingham’s considers useful for users of this presentation to reflect the underlying performance of the business. Definitions are included in the Appendix defining the non-IFRS information used. Non-IFRS measures have not been subject to audit. This presentation may contain certain “forward-looking statements” and comments about future events, including Ingham’s expectations about the performance of its businesses. Such forward–looking statements may include forecast financial information about Ingham’s, statements about industry and market trends, statements about future regulatory developments and the progress of current developments and statements about Ingham’s strategies and the likely outcomes of those strategies. Forward-looking statements can be identified by the use of forward-looking terminology, including, without limitation, the terms “believes”, “estimates”, “anticipates” “expects”, “predicts”, “outlook”, “guidance”, “plans”, “intends”, “should”, “could”, “may”, “will”, “would” and other similar expressions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and are provided as a general guide only, should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Ingham’s. Actual results, performance or achievements could be significantly different from those expressed in or implied by any forward-looking statements. There can be no assurance that actual outcomes will not differ materially from forward-looking statements.

This presentation has not been audited in accordance with Australian Auditing Standards.

Nothing contained in this presentation is, or should be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Ingham’s. Ingham’s does not undertake any obligation to update or review any forward-looking statements or any other information contained in this presentation. This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities and nor is it intended to be used for the purpose of or in connection with offers or invitations to sell or subscribe for or buy or otherwise deal in securities.

No representation of warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Ingham’s and its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability from fault or negligence.

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PRESENTATION OF FINANCIAL INFORMATION

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Financial information is provided on a post AASB 16 basis unless otherwise stated

On 5 November 2020 Ingham’s announced that it will report its underlying results inclusive of the new leases standard AASB 16.

The underlying results in this document include the impact of AASB 16 unless otherwise stated.

To support understanding of the impact of AASB 16 Ingham’s has also provided additional information for FY21 in the Appendix to this presentation (or as stated elsewhere in this document).

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GROUP PERFORMANCE HIGHLIGHTS

Andrew Reeves CEO & Managing Director

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GROUP HIGHLIGHTS

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Strong results, delivering on Optimising the Core strategy

Strong financial results	§ Statutory EBITDA of $443.9M up 14.5%, Statutory NPAT of $83.3M § Underlying EBITDA of $448.7M up 9.6%, Underlying NPAT $86.7M § Underlying EBITDA pre AASB 16 of $209.6M up 16.6%, Underlying NPAT pre AASB 16 of $101.2M § Total dividends of 16.5 cps, up 17.9% § Cash generation resulted in leverage improving to 1.2x from 1.8x at June 2020 § Group core poultry volume growth of 4.2% § Strengthened demand across most channels and overall trading volumes well ahead of pre COVID-19 levels § A dedicated team focused on process improvement and waste elimination, with 320 improvement project opportunities identified for FY22 § Revenue growth of 4.4% § Launching our targets and committing to reducing our impact on the planet § Providing greater transparency on our progress against our ESG commitments § Delivering operational momentum and underpinning financial results
Underpinned by solid poultry volume growth
Focusing on revenue growth and continuous improvement benefits
Advancing our ESG agenda
Strategy delivering positive results

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FY21 FINANCIAL HIGHLIGHTS

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Growth in key earnings metrics backed by a strong balance sheet

	FY21	FY20	Variance	%	§	Growth in core poultry volume of +4.2% reflects
Group Core Poultry Volume (kt)	446.9	428.7	18.2	4.2		the resilience of poultry
Statutory EBITDA ($M)	443.9	387.8	56.1	14.5		- Overall trading volume now ahead of COVID-19
						trading levels
Statutory NPAT ($M)	83.3	40.1	43.2	107.7	§	Volume and revenue growth, combined with
Underlying EBITDA ($M)	448.7	409.3	39.4	9.6		continued operational efficiencies, net feed cost
Underlying NPAT ($M)	86.7	55.1	31.6	57.4		benefit and frozen poultry inventory reduction
Underlying EBITDA pre AASB 16 ($M)	209.6	179.7	29.9	16.6		driving earnings improvement
Underlying NPAT pre AASB 16 ($M)	101.2	78.8	22.4	28.4	§	Total fully franked dividends of 16.5 cps,
						reflecting a payout ratio of 71% of Underlying
Dividend (fully franked) (cps)	16.5	14.0	2.5	17.9		NPAT, an increase of +17.9%
	FY21	FY20	Variance	%	§	Leverage at 1.2x, a reduction from 1.8x at June 2020
Leverage (underlying pre AASB 16)	1.2	1.8	▴ 0.6 33.3		§	Net debt of $240.2 million, down 23.7% on
Net Debt ($M)	240.2	314.7	▴ 74.5 23.7			June 2020 due to strong cash generation

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OBSERVATIONS ACROSS OUR CHANNELS

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RETAIL
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QSR
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FOOD
SERVICE
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WHOLESALE
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EXPORT
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• Performing well despite COVID-19 effects

• Following strong growth in 1H, Australian demand in 2H moderated versus the prior corresponding period (pcp) due to elevated demand arising from mid-2020 COVID-19 restrictions

• NZ demand lower due to reduced tourism as a result of border closures

• Ongoing shift in customer demand to tray pack

• Good performance post COVID-19 lockdowns earlier in the year with stronger 2H performance

• In Australia, volume growth continued in the second half with multiple successful promotions run by major QSR operators

• In NZ, stronger volume growth was also experienced, driven by promotions, Limited Time Offers and new products

• Trialing new products with key customers

• Volume growth improved in 2H with the easing of restrictions seeing demand returning to pre COVID-19 levels

• In Australia, increased local travel due to closed borders saw a strong improvement in demand in regional areas

• Impact from international tourism restrictions in Australia and New Zealand still being felt

• Volume grew strongly in the second half versus prior year, following slower growth in 1H, driven by securing of new business and expansion of coverage

• Broadening customer relationships

• Australian export volumes were lower versus pcp due to partial export market closures impacted by Bird Flu outbreak in some farms outside Ingham’s network

• Anticipate volumes to slowly grow as export markets re-open

• NZ export volumes recorded strong growth due to reduction of surplus inventory built during the national lockdown of Q4 prior year

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PROGRESS ON OUR STRATEGY

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Key focus on embedding strong foundations to support future growth opportunities

• STRATEGIC PILLARS ACHIEVEMENTS IN DELIVERY OF STRATEGY § Continuous improvement culture delivering improved effectiveness and capacity to lower costs, enhance yield, deliver a better product mix and reduce waste

• § Continuing to transform our strong organisational culture into a constructive culture to drive workforce

• OPTIMISE engagement, efficiency and innovation

• THE CORE § Integrated Business Planning delivering product optimisation and aligning production with customer requirements

• § Sale of non-core Hamilton NZ feed mill and associated NZ dairy feed supply business for NZ$11.45M

• § Construction of HatchTech hatcheries in Victoria and Western Australia to further improve animal welfare and drive lower costs of production. The Victorian facility now operational and Western Australia expected

• TRANSFORM FOR to commence around mid year FY22 TOMORROW § Redland Bay research farm operational, with a focus on optimising feed and raising the bar on animal welfare standards

• § Enhanced focus on the premium market through branded and private label product innovation

• § Free Ranger, launched in April 2020, continues to grow and now in over 300 stores

• § Supercrunch range outperforming expectations, new SKU’s added and excellent consumer feedback

CREATE THE NEW

• § Ongoing success of plant-based products introduced into retail and QSR in Australia and NZ

• § Innovation such as the McSpicy burger launched into McDonalds

• § New packaging delivered Ingham's masterbrand into Freezer that has a premium look, has higher appetite appeal and delivers on the brand promise of ‘Always Good’

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FINANCIAL RESULTS

Gary Mallett Chief Financial Officer

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PROFIT & LOSS

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Improved financial results achieved in a challenging operating environment

§	Volume: Core poultry volume +4.2% despite reduction in	$M	FY21	FY20	Variance	%
	external feed volumes, challenging market conditions	Core Poultry volumes (kt)	446.9	428.7	18.2	4.2
	including intermittent lockdowns, closed international borders	Total Poultry volumes (kt)	556.1	532.6	23.5	4.4
	and export market disruptions	External Feed volumes (kt)	368.9	406.0	(37.1)	(9.1)
§	Revenue: Revenue +4.4% as positive net selling prices were reflected across most channels	Revenue	2,668.8	2,555.3	113.5	4.4
§	Gross Margin %: +1.0pp to 27.0% due to a combination of	Gross Profit	720.2	663.5	56.7	8.5
	volume and revenue growth, improved operational	Gross Profit % Revenue	27.0	26.0	1.0	3.9
	performance, the realisation of continuous improvement	EBITDA	443.9	387.8	56.1	14.5
	initiatives and the change in the obsolete stock provision
	$13.6M	EBITDA % Revenue	16.6	15.2	1.4	9.2
§	Distribution: +3.1% due to volume and CPI increases partly	Depreciation & Amortisation	(265.3)	(263.4)	(1.9)	0.7
	offset by improved route optimisation	EBIT	178.6	124.4	54.2	43.6
§	SGA: +11.6% cost increase due to higher insurance and	Net finance expense	(65.6)	(68.3)	2.7	(4.0)
§	legal settlements AASB 16: +$9.2M NPAT improved due to non-recurring	Tax expense	(29.7)	(16.0)	(13.7)	85.6
	adjustments of $6.3M on adoption and the reduction in AASB	NPAT	83.3	40.1	43.2	107.7
	16 interest of $4.0M related to a reduced lease liability	Underlying EBITDA	448.7	409.3	39.4	9.6
§	Tax: Effective tax rate 26.4% is down 2.5pp due to the	Underlying NPAT	86.7	55.1	31.6	57.4
	receipt of an R&D tax credit of $8.5M for a prior year claim partially offset by a provision under IFRIC 23 for an uncertain	Underlying (pre AASB 16) EBITDA	209.6	179.7	29.9	16.6
	tax matter	Underlying (pre AASB 16) NPAT	101.2	78.8	22.4	28.3

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BALANCE SHEET

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Strong balance sheet provides a platform for future growth

§	Inventories:Reduced $24.0M due to selling down of excess frozen	$M	Jun-21	Jun-20	Variance
	processed poultry inventory built up in FY20 due to COVID-19,	Inventories/Biologicals*	328.5	352.5	(24.0)
	offset by increased value of feed on hand	Receivables*	224.7	205.2	19.5
§	Receivables:Increased $19.5M, in line with significantly higher	Payables	(400.6)	(406.4)	5.8
	sales in June 21 compared to the PCP which were impacted by	Working Capital	152.6	151.3	1.3
	COVID-19 lockdowns	Provisions	(131.7)	(120.6)	(11.1)
§	Payables:Trade payables flat on prior period, with the inventory	Working Capital & Provisions	20.9	30.7	(9.8)
	procurement trade payable facility reducing $11.7M to $110.0M	PP&E	457.9	450.3	7.6
§	Provisions:due to higher employee, legal and makegood	Right-of-use Assets	1,374.9	1,429.2	(54.3)
§	Right-of-use Assets:Reduced by $54.3M due to amortisation	Other Assets	5.8	14.2	(8.4)
	offset by CPI increases, additions and lease extensions	Lease Liabilities	(1,432.3)	(1,472.3)	40.0
§	Lease Liabilities:Decreased $40.0M due to lease payments offset	Other Liabilities	(3.3)	(7.6)	4.3
	by additions, CPI increases and extensions	Capital employed	423.9	444.5	(20.6)
§	Net Debt:improved due to strong trading cash generation and lower capital spend	Net Debt Net Tax balances	(240.2) (20.1)	(314.7) (0.7)	74.5 (19.4)
§	Tax Balances:Movement due to higher income tax payable at
	year-end	Net Assets	163.6	129.1	34.5

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• Note: Provisions within Inventories and Trade Receivables have been reclassed to ‘Provisions’

CASH FLOW

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Improved cash conversion through operating cash generation and prudent capital management

§	Cash conversion:Higher cash conversion, with a 340 basis point improvement from solid trading and working	$M Statutory EBITDA	Jun-21 443.9	Jun-20 387.8	Variance 56.1
§	capital management Capital Investment:COVID-19 lockdowns and border	Non-cash items EBITDA excluding non-cash items Changes in operating working capital	(3.3) 440.6 (1.3)	6.8 394.6 (9.3)	(10.1) 46.0 8.0
	closures disrupted some access to sites to complete	Changes in operating provisions	11.1	4.5	6.6
	projects, reducing spend $20.4M on PCP. Key projects	Cash flow from operations	450.4	389.8	60.6
	during the year included two hatcheries at $33.6M and	Capital expenditure	(66.3)	(86.7)	20.4
	the $9.8M FP “fully cooked” line in Auckland	Proceeds from sale of assets	10.7	9.5	1.2
§	Proceeds from Sale of Assets:Relates to the sale of	Other payments / receipts	0.2	0.2	0.0
	Hamilton Feedmill in New Zealand	Net cashflow before financing & tax	395.0	312.8	82.2
§	Tax paid:The reduction in tax paid of $35.2M in FY21 is	Dividends paid	(52.8)	(66.1)	13.3
	due to non-recurrence of the residual tax payment on the sale of Mitavite in FY20 and the receipt of a $8.5M	Shares purchased / sale share Interest paid / received Interest & principal – AASB 16 Leases	(1.7) (12.5) (243.1)	(3.4) (14.1) (232.5)	1.7 1.6 (10.6)
	prior year R&D tax credit in FY21	Net cashflow before tax	84.9	(3.3)	88.2
		Tax paid	(10.9)	(46.1)	35.2
		Amortisation borrowings / forex	0.5	(1.5)	2.0
		Net(increase) / decrease net debt	74.5	(50.9)	125.4
		Cash Conversion Ratio	102.2%	98.8%	▲340 bps

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CAPITAL MANAGEMENT OUTCOMES

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Cashflow from operations less lease payments of $207.2M. Cashflow from Cashflow from strategic Cashflow from interest and Cash conversion ratio of 102.2% due to working capital operations activities tax management and improved trading results Strong cash generation Expenditure spend of $22.9M (40% of depreciation), was Sustaining capital[1] below the target range due to COVID-19 disruptions and Annual spend range of approximately 75-90% of depreciation pre AASB 16 prudent capital management Maintaining a strong balance sheet Strong balance sheet, with leverage of 1.2 times Target leverage[2] (underlying pre AASB 16) of 1.0x to 2.0x Reliable dividends to shareholders Dividend of 16.5 cps, reflecting a payout ratio of 70.8% of Dividend payout ratio 60-80% of Underlying NPAT Underlying NPAT Growth and major project capex of $33.6M spent on new Investing in growth opportunities & major projects HatchTech hatcheries in VIC and WA and $9.8M Where aligned with strategy and expected to deliver returns in excess of specified hurdles investment in Auckland FP facility Additional returns to shareholders . Capital returns / special dividends / share buybacks Maximise shareholder value ROIC of 22.4% up +4.0pp on June 2020

Maximise shareholder value Over time the objective is to deliver a return on invested capital in excess of WACC[3]

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1. Sustaining capital includes maintenance, replacement, regulatory and stay-in-business capital 2. Leverage = Net Debt / LTM Underlying EBITDA pre AASB 16, Net Debt comprises of borrowing facilities less cash and cash equivalents

2. Weighted Average Cost of Capital

EXTERNAL FEED MARKET OBSERVATIONS

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Wheat pricing holding firm in 2H FY21 while soymeal prices have eased slightly but remain above historical levels

• Delivered feed cost contains cereal grains, protein meals, vitamins and minerals. Feed cost also includes transport and milling cost

• Grain imported into New Zealand operations is purchased from the international market

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Spot wheat price [1] (as observed by Ingham’s) Spot CME [2] Soymeal futures Slight easting in 2H FY21
$A per metric tonne however still above historical
$US per Short Tonne levels
$A per Metric Tonne
650
450
400 600
350 550
300 500
250
450
200
400
150
Prices flat in 2H FY21 with
350
100 volatility driven by global
markets
300
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0
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CY17 CY17 CY17 CY17 CY18 CY18 CY18 CY18 CY19 CY19 CY19 CY19 CY20 CY20 CY20 CY20 CY21 CY21
CY17 CY17 CY17 CY17 CY18 CY18 CY18 CY18 CY19 CY19 CY19 CY19 CY20 CY20 CY20 CY20 CY21 CY21
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
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• § Bumper wheat harvest in late 2020 of over 30m MT, reflected in wheat prices easing during 2H FY21 from historical highs for the current crop

• § 2H wheat prices firmed due to strong international demand, with investor flows and physical commodity demand pushing some offshore grain markets higher during the second half of FY21

• § Higher than expected export in 1H CY21 have reduced stocks domestically in some regions, creating some domestic price volatility

• § Soymeal pricing has started to ease from the highs in Q1 CY21

• § In FY21, the net impact of lower feed prices was realised as expected

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1. Spot prices shown above are for illustrative purposes only. Ingham’s actual consumption prices will differ due to the purchase of delivered grain/soymeal as well as level of forward cover of between 3 – 9 months. 2. Chicago Mercantile Exchange

SEGMENT PERFORMANCE

Andrew Reeves CEO & Managing Director

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AUSTRALIA

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Growth in revenue combined with operational efficiencies drive performance

$M	FY21	FY20	Var	%	Highlights:	Highlights:
Core Poultry volumes (kt)	380.7	366.4	14.3	3.9	§	Revenue growth of 4.8% delivered against a backdrop of intermittent
Total Poultry volumes (kt)	477.5	457.0	20.5	4.5		COVID-19 lockdowns and a challenging trading environment
Feed volumes (kt)	258.4	277.8	(19.4)	(7.0)	§	Core poultry volume growth of 3.9% driven by recovery and growth in QSR and Foodservice channels and greater coverage of wholesale
					§	Improvement in margin driven by the realisation of operational cost
Revenue	2,275.2	2,170.1	105.1	4.8		efficiencies, procurement savings and the year-on-year benefit in
Statutory EBITDA	371.8	327.8	44.0	13.4		stock obsolescence of $11.9M, offset by higher insurance and legal
						costs
EBITDA (% Rev)	16.3	15.6	0.7	4.8
Underlying EBITDA	375.9	348.8	27.1	7.8	§	Retail:2H trading moderated compared to the prior period, which was elevated due to COVID-19
Underlying EBITDA (% Rev)	16.5	16.1	0.4	2.5	§	QSR:Volume growth supported by successful QSR promotions and a
						favourable product mix
Underlying – pre AASB 16					§	Food Service:Volume growth supported by easing of restrictions in
Underlying EBITDA	171.8	151.1	20.7	13.7		2H and increased local tourism driving regional demand
Underlying EBITDA (% Rev)	7.6	7.1	0.5	7.0	§	Wholesale:Stronger performance the result of new business wins and expansion of coverage
Underlying Gross Profit	416.4	384.9	31.5	8.2	§	Export Poultry, By Products & External Feed:Export core poultry
Underlying Gross Profit (% Rev)	18.3	17.7	0.6	3.4		headwinds due to partial market export market closures. External feed
						and By Products performed better than prior year due to domestic
						demand

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NEW ZEALAND

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NZ growth supported by strong volumes and efficiencies in a challenged market

$M	FY21	FY20	Var	%	Highlights:	Highlights:
Core Poultry volumes (kt)	66.2	62.3	3.9	6.3	§	Core poultry volumes grew 6.3%, driven by a recovering wholesale
Total Poultry volumes (kt)	78.6	75.6	3.0	4.0		and foodservice channel, continued strength in QSR and lapping the disruption in Q4 of prior year during the full national lockdown
Feed volumes (kt)	110.5	128.2	(17.7)	(13.8)	§	Total revenue growth of 2.2%, feed revenue (-10.6%) mainly impacted
						in 2H due to the sale of the Hamilton Feed Mill. Poultry revenue grew
Revenue	393.6	385.2	8.4	2.2		by 5.3%
Statutory EBITDA	72.1	60.0	12.1	20.2	§	Good progress during year with reducing surplus inventory, with levels now back to pre COVID-19 levels
EBITDA (% Rev)	18.3	15.9	2.4	15.1	§	Underlying EBITDA pre AASB 16 up by $9.2M with improving
Underlying EBITDA	72.8	60.5	12.3	20.3		demand, further operational efficiencies and cost control. Royalty
Underlying EBITDA (% Rev)	18.5	15.7	2.8	17.8		charge from NZ to Australia was reduced by $6.0M for FY21, with a neutral outcome for the Group
					§	Retail:Retailers reporting softer trade due to impact of border
Underlying – pre AASB 16						closures on traffic numbers
Underlying EBITDA	37.8	28.6	9.2	32.2	§	QSR:Stronger demand across the board
Underlying EBITDA (% Rev)	9.6	7.4	2.2	29.7	§	Food Service: Demand is recovering but not yet back to pre COVID-
Underlying Gross Profit	92.0	75.5	16.5	21.9		19 levels. Tourist areas severely impacted by the border closure
Underlying Gross Profit (% Rev)	23.4	19.6	3.8	19.4	§	Wholesale: Growth in home meal delivery kits
					§	Export: Strong volumes during the year to assist with reducing surplus
						inventory built during the national lockdown of Q4 prior year

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STRATEGY IN ACTION

Andrew Reeves CEO & Managing Director

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PAKENHAM HATCHERY, VICTORIA

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First of its kind in Australia/New Zealand

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• § The hatchery takes eggs from our Breeder farms, hatches the chicks, and sends them out to broiler farms

• § Automated technology system called ‘HatchCare’ that provides a more spacious environment, and immediate access to light, feed and water for the chicks

• § One of only 7 facilities installed globally

• § Capacity to hatch approximately 850,000 eggs every week

• § Substantial animal welfare and performance benefits including:

• Feed and water to chicks upon hatching

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• Chicks have ~40% more living space

• Improved hatch rates

• Improved average live weight

• Improved Feed Conversion Ratio

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AUCKLAND PLANT

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Investing in the plant to improve capability, capacity and efficiency

• § Investing NZ $17 million in the Auckland processing facility

• Project to complete in 1H FY22

• § Increased overall network capacity to meet forecast growth in demand. Provides improved processing capability

• § Strong customer interest and supports bringing new products to market

• § Key benefits

• Ability to provide fully cooked product, at scale

• Supports creation and delivery of new product options to market

• Improved operational efficiencies, offsetting annual cost pressures

• New production line enables increased volume through-put in less time

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OPTIMISING THE CORE

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Installed new Spin Chiller at Osborne Park

Lyndhurst Distribution Centre

• § Spin Chiller at Osborne Park, Western Australia, installed in 2H

• § Spend of around $8 million

• § The Spin Chiller is the largest single piece of equipment in a processing facility

• Used to reduce the internal temperature of chickens to sub-4 degrees Celsius within a few hours

• § Installing the new Spin Chiller allows us to achieve a number of important outcomes:

• Provides a safer working environment

• Improve the shelf life of our products through the rapid lowering of product temperatures

• Significant reduction in water usage

• Can support a significant increase in total production, currently around 360,000 birds per week

• § Investing in the network to ensure ongoing business efficiency into the future

• § The current distribution centre is nearing its lease expiry and was deemed too small and outdated for projected Victorian demand growth

• § Planning has commenced for the move of our Lyndhurst Distribution Centre (DC) to new premises, and we have entered into a long-term lease with a developer/owner for new facility

• § The new facility can support an increase in processing of approximately 35% to meet future freezing and holding capacity requirements

• § Significant financial benefits over time

• Approximately $1 million in annual rent savings

• Significant savings in transport costs and labour efficiency gains

• § Similar projects planned for South Australia and WA

• § Expecting to take occupation in late FY22

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SUSTAINABILITY Andrew Reeves CEO & Managing Director

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SUSTAINABILITY

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Core to our strategy and underpins our future initiatives

• § This year we set our 2030 Planet targets including our commitment to set Science Based Targets (SBT)

• § Our 2030 Planet targets include a commitment to set Science Based Targets for Scope 1 and Scope 2 GHG emissions based on the 1.5°C Pathway. By 2030, we will reduce:

• Scope 1 and Scope 2 absolute GHG emissions by 43% against a 2019 baseline

• Water intensity (kL/T) needed to process our products by 20% against a 2019 baseline

• Waste to landfill intensity (kg/T) by 20% against a 2020 baseline

• § Ingham’s first TCFD (Taskforce on Climate-Related Financial Disclosures) report will be published in the 2021 Company Annual Report, including a disclosure pathway

• § Released our Modern Slavery Statement during the year

• § Launched our 2025 Packaging targets in line with the Australian Packaging Covenant

• § Our plan is to set concrete actions to deliver on our targets, whilst increasing our transparency with improved reporting on progress with our initiatives

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SUSTAINABILITY

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Key focus areas across our operations showing good progress

• § Despite the disruptions caused by COVID-19, we made good progress in FY21

• § Our measures of GHG emissions, water usage and landfill waste generation have all improved year on year

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4.4% reduction in absolute GHG emissions against previous year

• 4.6% reduction in Water intensity against previous year

5.4% reduction in Landfill Waste intensity against previous year

Key Animal Welfare Indicators developed in line with AssureWel and Bristol University standards

GivING program Foodbank partnership, where food destined for waste now is redirected, contributing to 844,950 meals.

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• 24% improvement in LTIFR[1] to 2.9

25% improvement in TRIFR[2] to 6.1

170 employees attended ‘GROW’ leadership development program

• 2% improvement in our senior leadership female representation

Launched paid pandemic & vaccination leave policy for our frontline people

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1. LTIFR refers to Lost Time Injury Frequency Rate. 2. TRIFR refers to Total Recordable Injury Frequency Rate.

STRATEGIC EVOLUTION & SUMMARY

Andrew Reeves CEO & Managing Director

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EVOLVING OUR STRATEGY

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Elevating our focus on brand, product and customer

• § Undertaking a review of the strategic priorities

• Identify opportunities to leverage and evolve current activities

• Optimise the Core delivering significant benefits with a meaningful pipeline of projects that will benefit FY22 and beyond

• Drive category growth and secure new growth opportunities

• Product differentiation and value add

• § Three key active workstreams have been launched across the business

• Brand architecture program to develop a meaningful, long-term suite of brands that we will support with investment

• Product portfolio program to identify opportunities and pathways to increase our share of branded products, and to develop clear strategies across white label, Ingham’s, and our value-add/specialty brands

• Delivering a Growth roadmap for poultry, supported by strong and deep customer engagement, thought leadership and insights

• § Assess appropriate external opportunities, aligned to core business or adjacencies, to expand existing operations

• § Progressing our ESG agenda, including target setting and disclosure

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SUMMARY

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• § Solid financial results achieved in FY21 and strong balance sheet position

• § Seamless CEO transition

• Comprehensive review of Ingham’s operations over the past five months

• Review of strategic priorities to be undertaken in 1H FY22

• § Ingham’s and Woolworths have agreed in principle to an ongoing supply agreement for poultry products on broadly similar terms

• § Embedding sustainability practices across the business focused on enhancing our Sustainability reporting

• § Securing growth opportunities with existing customers and product innovation

• § Consumer behaviour affected in the near-term by current lockdowns and restrictions

• § Volumes expected to show continued growth with new business across various channels

• § Feed costs have stabilised, however volatility in international commodity markets has led to domestic pricing holding firmer. We continue to hold between 3-9 months forward cover

• § Optimise the Core program will continue to deliver meaningful benefits in excess of inflationary cost increases through operational efficiencies implemented across the business

• § Investing in our network through projects including the WA hatchery, NZ FP plant expansion, Murarrie red area replacement, a new breeder triangle servicing Queensland, a new waste-water treatment plant at Osborne Park and commencing a systems modernisation project

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APPENDIX

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AASB 16 LEASE IMPACT

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AASB 16 impact reduced with NPAT benefiting by $9.2M

• § Land and Buildings: Ingham’s has a large leased property portfolio. Right-of-use assets increased due to lease extensions and contractual rent increases, this had a corresponding increase in the lease liability

• § Contract Growers: are classified as a Right-of-use assets due to the fixed and capital component of the fee structure

• § EBITDA: improved +$9.5M due to the increase in payments related to CPI remeasurements and additions and non-recurring adjustments to inventory of $6.3M on adoption of the standard in the pcp

• § Interest: declined $4.0M due to the unwinding of the lease liabilities

• § NPAT: impact in FY21 was $14.5M which is expected to improve around $3M in FY22

• § Land & Buildings: increased on average 0.3 years to the due extension of leases with options

• § Growers: decreased on average 0.7 years due to contracts expiring and moving to performance based contracts

Balance Sheet $M	FY21	AU	NZ	FY20
Land & Buildings	852.0	738.8	113.2	814.6
Growers	515.6	426.0	89.6	601.6
Equipment	7.3	5.5	1.8	13.0
Right-of-use Assets	1,374.9	1,170.3	204.6	1,429.2
Lease Liability	(1,432.3)	(1,222.4)	(209.9)	(1,472.3)
Capital Employed	(57.4)	(52.1)	(5.3)	(43.1)
Tax	20.5	19.1	1.4	10.0
Net assets	(36.9)	(33.2)	(3.9)	(33.1)
P&L Impact $M	FY21	AU	NZ	FY20
EBITDA Depreciation	239.1 (208.9)	203.9 (177.4)	35.2 (31.5)	229.6 (208.5)
EBIT Net finance expense	30.2 (50.8)	26.5 (44.9)	3.7 (5.9)	21.1 (54.8)
Tax expense	6.1	5.5	0.7	10.0
NPAT	(14.5)	(12.9)	(1.5)	(23.7)
Ave. Term (years)	FY21	AU	NZ	FY20
Land & Buildings	12.7	12.4	14.6	12.4
Growers	3.4	3.3	3.9	4.1
Equipment	1.2	0.9	1.5	1.5

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PROFIT & LOSS RECONCILIATION

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Profit & Loss $M	FY21 Statutory	Excluded from underlying	FY21 Underlying	AASB 16 Leases	FY21 Underlying (Pre AASB 16) (Reported)	FY20 Underlying (Pre AASB 16) (Reported)
Core Poultry volume (kt)	446.9		446.9		446.9	428.7
By-Products volume (kt)	109.2		109.2		109.2	103.9
Total Poultry volume (kt)	556.1		556.1		556.1	532.6
Feed Volume (kt)	368.9		368.9		368.9	406.0
Core Poultry Revenue	2,415.4		2,415.4		2,415.4	2,284.5
By-Products Revenue	48.7		48.7		48.7	47.6
Total Poultry Revenue	2,464.1		2,464.1		2,464.1	2,332.1
Feed Revenue	204.7		204.7		204.7	223.2
Revenue	2,668.8		2,668.8		2,668.8	2,555.3
Cost of sales	(1,948.6)		(1,948.6)	(211.8)	(2,160.4)	(2,094.9)
Gross profit	720.2		720.2	(211.8)	508.4	460.4
Gross profit %	27.0		27.0		19.1	18.0
Distribution expense	(142.2)		(142.2)	(20.1)	(162.3)	(157.4)
Sales & admin	(134.5)	4.8	(129.7)	(7.2)	(136.9)	(123.6)
JV	0.4		0.4		0.4	0.3
EBITDA	443.9	4.8	448.7	(239.1)	209.6	179.7
EBITDA %	16.6		16.8		7.9	7.0
Depreciation	(265.3)		(265.3)	208.9	(56.4)	(54.9)
Interest	(65.6)		(65.6)	50.8	(14.8)	(13.6)
PBT	113.0	4.8	117.8	20.7	138.5	111.2
Tax	(29.7)	(1.4)	(31.1)	(6.1)	(37.2)	(32.4)
NPAT	83.3	3.4	86.7	14.5	101.2	78.8

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1. Reclassification of export costs from Cost of sales to Distribution expense and staff shop costs from Sales & admin to Cost of sales

EBITDA & NPAT RECONCILIATION

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$M	FY21	FY20	Var	%	§	(Profit)/Loss on sale of assets:relates to the loss on sale of
Statutory EBITDA	443.9	387.8	56.2	14.5		Hamilton mill and sale of surplus farms in the prior year
(Profit) / Loss on sale of assets	0.5	(0.4)	0.9	(225.0)	§	Impairments of assets:in the prior year relates to impairment
Impairment of assets Restructuring	0.0 4.3	20.3 1.6	(20.3) 2.7	(100.0) 168.8		of Cleveland (QLD) further processing site lease $10.7M; the
Excluded from Underlying	4.8	21.5	(16.7)	(77.7)		Wacol (QLD) feed mill site carrying value $6.7M and Muchea
Underlying EBITDA	448.7	409.3	39.4	9.6		(WA) Feedmill site impaired $0.8M upon termination of
AASB 16 adjustments	(239.1)	(229.6)	(9.5)	4.1		acquisition
Underlying EBITDA pre AASB 16	209.6	179.7	29.9	16.6	§	Restructuring:costs relate to redundancy payments arising
$M	FY21	FY20	Var	%		from structural changes 1H and a legal settlement relating to
Statutory NPAT	83.3	40.1	43.2	107.7		Mitavite 2H
(Profit) / Loss on sale of assets	0.3	(0.3)	0.7	(233.3)	§	AASB 16 leases EBITDA impact:Included in EBITDA
Impairment of assets	0.0	14.2	(14.2)	(100.0)		($239.1M) is cost of sales ($211.8M), distribution ($20.1M) and
Restructuring	3.1	1.1	1.9	172.7		sales & admin ($7.2M)
Excluded from Underlying	3.4	15.0	(11.6)	(77.3)
Underlying NPAT	86.7	55.1	31.6	57.4
AASB 16 adjustments	14.5	23.7	(9.2)	(38.8)
Underlying NPAT pre AASB 16	101.2	78.8	22.4	28.4

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SEGMENT RECONCILIATION

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	Group	Group		Australia	Australia		NZ	NZ
$M	FY21	FY20	Var	FY21	FY20	Var	FY21	FY20	Var
Statutory EBITDA	443.9	387.8	56.1	371.8	327.8	44.0	72.1	60.0	12.1
(Profit) / Loss on sale of assets	0.5	(0.4)	0.9	0.0	(0.4)	0.4	0.5	0.0	0.5
Impairment of assets	0.0	20.3	(20.3)	0.0	20.3	(20.3)	0.0	0.0	0.0
Restructuring	4.3	1.6	2.7	4.1	1.1	3.0	0.2	0.5	(0.3)
Underlying EBITDA	448.7	409.3	39.4	375.9	348.8	27.1	72.8	60.5	12.3
AASB 16 adjustments	(239.1)	(229.6)	(9.5)	(204.1)	(197.7)	(6.4)	(35.0)	(31.9)	(3.1)
Underlying EBITDA pre AASB 16	209.6	179.7	29.9	171.8	151.1	20.7	37.8	28.6	9.2

• § Group restructuring costs in FY21 due to redundancy payments arising from structural changes and a legal settlement relating to Mitavite

• § FY21 loss on sale relates to Hamilton Mill in NZ

• § Australia: AASB 16 adjustments increased in FY21 due to:

• Land & Buildings – lease extensions and contracted CPI rental increases

• Growers – contracted price increases and agreement modifications

• § New Zealand: AASB 16 adjustments increased in FY21 due to:

• Land & Buildings – lease extensions and contracted CPI rental increases

• Growers – the addition of a new grower during the period

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RETURN ON INVESTED CAPITAL (ROIC)

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Achieved a ROIC of 22.4% for FY21

• § Achieved a ROIC of 22.4% for the year, up from 18.4% in pcp

• § Measure introduced as part of our capital management framework

• § ROIC defined as:

• Underlying NOPAT pre AASB 16 divided by Average capital invested pre AASB 16

$M	FY21	FY20
Return On Invested Capital (ROIC)
Underlying NPAT pre AASB 16	101.2	78.8
Interest – net of tax	10.4	9.5
Net Operating Profit After Tax	111.6	88.3
Average Capital Invested pre AASB 16	497.3	478.9
ROIC %	22.4%	18.4%

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FY20 AASB 16 IMPACT

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Profit & Loss $M	FY20 Underlying (Reported)	Less: Reclass(1)	FY20 Underlying (Revised)	AASB 16 impact $M	FY20 Reported	Less: Reclass(1)	FY20 Revised
Revenue	2,555.3		2,555.3	Revenue	-		-
Cost of sales	(1,912.8)	21.0	(1,891.8)	Cost of sales	(224.1)	21.0	(203.1)
Gross profit	642.5	21.0	663.5	Gross profit	(224.1)	21.0	(203.1)
Distribution expense	(117.4)	(20.5)	(137.9)	Distribution expense	0.0	(20.5)	(20.5)
Sales & admin	(116.1)	(0.5)	(116.6)	Sales & admin	(5.5)	(0.5)	(6.0)
JV	0.3		0.3	JV	-		-
EBITDA	409.3	-	409.3	EBITDA	(229.6)	-	(229.6)
Depreciation	(263.4)		(263.4)	D&A	208.5		208.5
EBIT	145.9		145.9	EBIT	(21.1)		(21.1)
Interest	(68.4)		(68.4)	Interest	54.8		54.8
PBT	77.5		77.5	PBT	33.7		33.7
Tax	(22.4)		(22.4)	Tax	(10.0)		(10.0)
NPAT	55.1	-	55.1	NPAT	23.7	-	23.7

1. Reclassification of costs from Cost of Sales to Distribution expense and Sales & Admin to Cost of Sales to reflect the back out of rental payments within EBITDA by correct cost category

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DEFINITIONS

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Certain non-IFRS information is referred to in this presentation and are defined below

• § EBITDA: Earnings before Interest, Tax, Depreciation and Amortisation

• § EBIT: Earnings before Interest and Tax

• § Gross Profit: Revenue less cost of sales

• § Underlying Gross Profit pre AASB 16: Underlying Gross Profit excluding AASB 16 leasing impacts

• § Underlying EBITDA: Underlying EBITDA excluding any profit or loss on sale of assets, restructuring expenses, impairments and trading results for business sold as a going concern, inclusive of AASB 16 Leases

• § Underlying EBITDA pre AASB 16: Underlying EBITDA excluding AASB 16 leasing impacts

• § Underlying NPAT: Net Profit After Tax excluding any profit or loss on sale of assets, restructuring expenses, impairments and trading results for business sold as a going concern after being tax effected, inclusive of AASB 16 Leases

• § Underlying NPAT pre AASB 16: Underlying NPAT excluding AASB 16 leasing impacts after being tax effected

• § Earnings Per Share (EPS): NPAT divided by the weighted average shares outstanding during the period

• § Net Debt: Debt less cash and cash equivalents

• § LTM : Last twelve months

• § PCP: Prior corresponding period

• § Total Poultry: includes core chicken and turkey products and by products

• § Core Poultry: refers to chicken and turkey products for human consumption, excluding by-products

• § Cash Conversion ratio: Cash Flow from Operations divided by EBITDA excluding non-cash items

• § Working Capital (Operating): Working capital adjusted for non-operating items including but not limited to interest accruals and proceeds from sale of assets

• § ROIC : Return on Invested Capital

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