WINGARA AG LTD — Interim / Quarterly Report 2017

Apr 27, 2017

Wingara AG Limited ACN 009 087 469 Suite 1/1233 High Street Armadale, Victoria 3143

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Attachment to Appendix 4C

Summary of period 1 January 2017 to 31 March 2017

Wingara Ag Ltd (ASX:WNR) is pleased to present the Company’s Appendix 4C for the 1 January 2017 to 31 March 2017 quarter.

March Quarter Review

• First full quarter sales on the back of the 2016 harvest have been encouraging with processed volume increasing by 25% compared to similar period last year

• Continued capital investment to improve efficiency to deliver up to 35,000T production in calendar year 2017

• Developing new markets with good result on the back of available hay quality in the region

• Continued to consolidate cash position to meet future capital requirements

Friday 28[TH] April 2017

Wingara Ag’s activities during the quarter resulted in encouraging progress on the development of new markets as well as improvement in processed volumes. The resulting cash flow position from the quarter established a good platform to implement our growth strategy in the next 12 to 18 months.

Wingara is able to secure a sufficient quantity of export grade hay at different quality levels for this calendar year and is looking to work with existing suppliers to secure volume for the 2018 calendar year as the sowing season is about to start. Management is focusing on processing up to 35,000T of export hay in 2017 and is on target.

During the quarter, the Company received funding of $1.46 million to secure the purchase of inventory and key equipment purchases as reported in the December quarter Appendix 4C.

The Company continues to pursue the existing transaction with Horsham City Council as announced to the market on 11[th] October 2016. The discussion with PHPC is ongoing while working through various commercial issues to develop an alternative acquisition structure that can be considered by end of June.

The Appendix 4C follows.

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

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Wingara AG Limited
ACN Quarter ended (“current quarter”)
009 087 469 31 March 2017
Consolidated statement of cash flows Current quarter Year to date
$A’000
(9 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers 2,837 8,776
1.2 Payments for
- -
(a) research and development
(b) product manufacturing and operating
costs (683) (1,774)
hay Purchases (1,154) (4,805)
(c) advertising and marketing (9) (20)
(d) leased assets (22) (57)
(e) staff costs (455) (1,178)
(f) administration and corporate costs (277) (670)
1.3 Dividends received (see note 3) - -
1.4 Interest received 19 36
1.5 Interest and other costs of finance paid (113) (184)
1.6 Income taxes paid - (145)
1.7 Government grants and tax incentives - -
1.8 Other (provide details if material) - (5)
1.9 Net cash from / (used in) operating
activities 144 (27)
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• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

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Consolidated statement of cash flows Current quarter Year to date
$A’000
(9 months)
$A’000
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (168) (662)
- -
(b) businesses (see item 10)
- -
(c) investments
- -
(d) intellectual property
-
(e) other non-current assets (20)
2.2 Proceeds from disposal of:
- -
(a) property, plant and equipment
- -
(b) businesses (see item 10)
- -
(c) investments
- -
(d) intellectual property
- -
(e) other non-current assets
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing
activities (168) (682)
3. Cash flows from financing activities
-
3.1 Proceeds from issues of shares 2,863
3.2 Proceeds from issue of convertible notes -
2,000
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of
-
shares, convertible notes or options (266)
3.5 Proceeds from borrowings 1,460 1,940
3.6 Repayment of borrowings (107) (1,359)
3.7 Transaction costs related to loans and
borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing
activities 1,353 5,178
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• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

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Consolidated statement of cash flows Current quarter Year to date
$A’000
(9 months)
$A’000
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
quarter/year to date 5,296 2,145
4.2 Net cash from / (used in) operating
activities (item 1.9 above) 144 (27)
4.3 Net cash from / (used in) investing activities
(item 2.6 above) (168) (682)
4.4 Net cash from / (used in) financing activities
(item 3.10 above) 1,353 5,178
4.5 Effect of movement in exchange rates on
cash held - 11
4.6 Cash and cash equivalents at end of
6,625 6,625
quarter
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 3,125 1,282
5.2 Call deposits 3,500 4,013
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of
6,625 5,296
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 55
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
The amount at 6.1 includes payment of directors’ fees and payments to a director related entity
excluding reimbursement for administrative expenses and travel expenses.
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• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000 - -

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

N/A

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 5,192 3,969 - - - -

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Item 8.1 includes the following facilities with the ANZ Banking Group:

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Facility Credit limit Interest rate
(A$'000) (%p.a.)
ANZ Tailored Commercial Facility 800 BBR + 1.3
Overdraft Facility 800 BBR + 1.8
Asset Finance Facility 850 -
Stand by Leter of Credit or Guarantee Facility 80 -
Loan Facility - Daily rate 2,500 BBR + 1.3
Loan Facility - Daily rate 137 BBR + 1.1
Commercial Card Facility 25 -
5,192
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All of the above facilities are secured.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

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9. Estimated cash outflows for next quarter $A’000
9.1 Research and development -
9.2 Product manufacturing and operating costs (2,000)
9.3 Advertising and marketing -
9.4 Leased assets (22)
9.5 Staff costs (376)
9.6 Administration and corporate costs (290)
9.7 Other (provide details if material) -
9.8 Total estimated cash outflows (2,688)
10. Acquisitions and disposals of Acquisitions Disposals
business entities
(items 2.1(b) and 2.2(b) above)
10.1 Name of entity - -
10.2 Place of incorporation or - -
registration
10.3 Consideration for acquisition or - -
disposal
10.4 Total net assets - -
10.5 Nature of business - -
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Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: Date: 28 April 2017 Company secretary Print name: Phillip Hains

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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