WINGARA AG LTD — Interim / Quarterly Report 2019

Jul 15, 2018

Wingara AG Limited ACN 009 087 469 5-7 Leslie Road Laverton North, Victoria 3026

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Attachment to Appendix 4C

Highlights of period 1 April 2018 to 30 June 2018

Wingara Ag Ltd (ASX:WNR) is pleased to present the Company’s Appendix 4C for the 1 April 2018 to 30 June 2018 quarter.

Q1, Financial Year 2019 Highlights

• 152% increase in Customer receipts, $6.059m (Previous Qtr $2.406m)

• 354% increase in Operating cash surplus, $1.035m (Previous Qtr -$0.409m)

• Construction of the Raywood facility is ahead of schedule and close to completion

• Production expected to commence in the September 2018 quarter

16 July 2018

Operations

The Epsom site incurred additional overheads in the June 2018 quarter with significant investment in staff training and development in preparation to deploy readily-trained staff to the Raywood facility once operations commence. In addition, approximately $0.5m one off expenses were incurred in the June 2018 quarter in relation to the project development activities. While undertaking our expansion program we have also been actively managing our capital structure by reducing $2.36m debt.

Capital expenditure

Capital expenditure for the March 2018 quarter totalled $18.650m for the settlement of Austco Polar and the hay business. Civil and construction works are ahead of schedule with the inventory and processing sheds completed for Raywood. Commissioning is expected in late August 2018 with initial production expected to commence in the September 2018 quarter. Wingara remains on track to achieve its production forecast of 70,000MT by 31[st] March 2019.

Austco acquisition

On 16 April 2018, Wingara completed the acquisition of Austco Polar Cold Storage. The acquisition represents a new stable income stream which will diversify the Group’s earnings base, significantly enhance the Group’s exposure to the ever increasing export of high-quality Australian meat products. The integration of the acquisition is complete and Austco has already started to generate positive cashflows for the Group. Wingara Group has established a proven track record of executing strategic expansion and product diversification while delivering increasing income returns.

The Appendix 4C follows.

Contact:

Roger Prezens Director of Investor Relations and Investment Ph: +61 (0) 408 520 008

Wingara AG Limited ACN 009 087 469 5-7 Leslie Road Laverton North, Victoria 3026

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About Wingara Ag Limited:

Wingara Ag Limited aims to be the leader in the sale of agricultural products to the domestic and international markets, particularly focusing on the export of hay products to Asia. By adhering to the highest standards of production we ensure a reliable source of hay to our clients, enabling them to meet their business demands confident in the quality of our product.

We are also dedicated to supporting local producers and our commitment to providing an equitable relationship with Australian farmers allows us to source the best product available. Wingara is committed to ensuring we uphold the highest standards of integrity throughout the organisation, ensuring that we create an environment in which individuals continue to strive to meet our goals.

Forward-Looking Statements:

Certain statements made in this release are forward-looking statements and are based on Wingara Ag’s current expectations, estimates and projections. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “guidance” and similar expressions are intended to identify forward-looking statements. Although Wingara Ag believes the forward-looking statements are based on reasonable assumptions, they are subject to certain risks and uncertainties, some of which are beyond Wingara Ag’s control, including those risks or uncertainties inherent in the process of both developing and commercialising technology. As a result, actual results could materially differ from those expressed or forecasted in the forward-looking statements. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Wingara Ag will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this release except as required by law or by any appropriate regulatory authority.

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

Wingara AG Ltd

ABN 58 009 087 469	Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
	30 June 2018
Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs hay purchases (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes (paid)/refunded 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	6,059 - (1,486) (1,322) (43) (9) (1,273) (786) - 11 (244) 123 - 5	6,059 - (1,486) (1,322) (43) (9) (1,273) (786) - 11 (244) 123 - 5
	1,035	1,035
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets	(440) (16,329) - - (1,881)	(440) (16,329) - - (1,881)

• See chapter 19 for defined terms

1 September 2016

Page 1

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
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	- - - - - - - -	- - - - - - - -
	(18,650)	(18,650)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 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	- - - - 15,233 (2,360) - - -	- - - - 15,233 (2,360) - - -
	12,873	12,873
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 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	8,702 1,035 (18,650) 12,873 85	8,702 1,035 (18,650) 12,873 85
	4,045	4,045

• 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

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	4,045 - 600 -	8,702 - 600 -
	4,645	9,302
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 92 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
		Current quarter $A'000
		92
		-

7.	Payments to related entities of the entity and their associates	Current quarter
		$A'000
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
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

• 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

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	24,934	22,097
8.2	Credit standby arrangements	80	80
8.3	Other (please specify)	-	-
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.

	Facility	Facility Limit	Drawndown	Interest
		($,000)	($,000)	Rate
	Inventory Loan Facility	2,500	1,500	BBSY + 1.5
	Asset finance facility	1,330	1,247
	Bank overdraft	600	600	BBSY + 1.8
	Asset finance facility (Additional)	3,470	3,123
	Standby Letter of Credit or Guarantee Facility	80	80
	AssetLoan FacilityDailyRate	34	7	BBSY+1.5
	ANZ tailored Commercial Facility (1)	2,000	1,920	BBSY + 1.5
	ANZ tailored Commercial Facility (2)	15,000	13,700	BBSY + 1.5
	Totals	25,014	22,177

9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	$A’000	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows		- (4,135) - - (1,836) (215) -
		(6,186)
10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions $A’000		Disposals $A’000
10.1 Name of entity	Austco Polar Cold Storage		-
10.2 Place of incorporation or registration	Victoria		-
10.3 Consideration for acquisition or disposal	18,500		-
10.4 Total net assets	5,179		-
10.5 Nature of business	Cold Storage/Export Facility		-

• 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

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.

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Sign here: ............................................................ Date: 16 July 2018

Print name: Phillip Hains

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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