WINGARA AG LTD — Interim / Quarterly Report 2018

Jan 30, 2018

Wingara AG Limited ACN 009 087 469 Level 3, 62 Lygon Street Carlton, Victoria 3053

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Attachment to Appendix 4C

Summary of period 1 October 2017 to 31 December 2017

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

Quarter ended 31 December 2017 Review

• We had a very successful harvest period having contracted sufficient volume for the coming season according to offshore market appetite. Our hay purchase and delivery for the quarter was completed within our expectation.

• Working with our key clients, we completed the planned plant upgrade with a new manufacturing process to deliver improved efficiency, flexibility and product presentation. This process also enabled us to systematically remove implementation risk for Raywood project and continuously fine-tune cost-efficiency measures.

• Continue to invest in the development of Raywood and Horsham sites. Construction for Raywood site started in mid December 2017, and we have completed the first storage shed with capacity of 10,000t as of 30[th] January 2018. This is ahead of the construction schedule and we are on target to produce 70,000T by 31 March 2019 to meet customers’ demand.

Wednesday 31[st] January 2018

WNR was able to deliver an operating cash surplus during the December quarter even after allowing for the implementation of various capital and operational improvement programs to support its target of 70,000T by 31 March 2019. Actual production achieved during the December quarter was 5,439T compared to 5,867T in the same quarter in December 2016. This number achieved is after a planned 4 week shutdown to complete upgrade of existing machine to deliver an improved finished product and operational efficiencies at Epsom. The learnings from the upgrade has also enabled us to systematically remove implementation risk for the Raywood project.

WNR had a very successful harvest period and contracted sufficient volume for the coming season according to offshore market appetite. Our hay purchase and delivery for the quarter was completed within our expectation.

At the moment, WNR is meeting only a fraction of the customers’ demand and the capital improvements in Epsom combined with the new Raywood Facility will help deliver the increased supply. We are exploring sub-contracting options to meet our customers’ demand until we have sufficient production capacity.

Capital expenditure in December 2017 quarter reflects the construction activity at our Raywood site and investment in production facilities at Epsom.

Wingara AG Limited ACN 009 087 469 Level 3, 62 Lygon Street Carlton, Victoria 3053

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The Appendix 4C follows.

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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

~~Qu~~ arterly 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

Name of entity	Name of entity	Name of entity
Wingara AG Limited
ACN 009 087 469	Quarter ended (“current quarter”)
	31 December 2017
Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 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 1.7 Government grants and tax incentives 1.8 Other (provide details if material) - GST refund 1.9 Net cash from / (used in) operating activities	2,253 - (528) (1,065) (82) (12) (352) (132) - 4 (52) - - -	8,626 - (2,166) (4,275) (160) (35) (1,327) (457) - 47 (211) (57) - 361
	33	406

• 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

	Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
	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 assets 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	(71) - - - (2,614) - - - - - - - -	(634) - - - (3,292) - - - - - - - -
		(2,685)	(3,926)
	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	- - - - 910 (479) - - -	- - - - 3,879 (4,252) - - -
		432	(373)

• 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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (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 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	4,951 33 (2,685) 432 (14)	6,625 406 (3,926) (373) (14)
	2,717	2,717
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)	2.717 - - -	4,951 - - -
	2.717	4,951
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 52 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
		52
		-
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.

• 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
	7,514	3,585
	-	-
	-	-

• 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:

Facility	Credit limit	Interest rate
	(A$'000)	(%p.a.)
ANZ Tailored Commercial Facility	1,015	BBR+1.3
OverdraftFacility	600	BBR+1.8
AssetFinanceFacility	1,330	-
AssetFinanceFacility (additional)	1,870
Stand by Letter of Credit or Guarantee Facility	80	-
InventoryLoan Facility- Dailyrate	2,500	BBR+1.3
AssetLoan Facility- Dailyrate	69	BBSY+1.1
Commercial Card Facility	50	-
	7,514

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

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		- (1,888) - (12) (376) (228) -
		(2,504)
10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions		Disposals
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	-		-

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: Company secretary

Date: 31 January 2018

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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