WINGARA AG LTD — Interim / Quarterly Report 2019

Apr 29, 2019

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

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ASX Announcement

30 April 2019

WINGARA FY19 RESULTS

Wingara AG Limited (“Wingara” or “the Company”) is pleased to provide their Appendix 4C together with unaudited results for FY19.

Over the past 12 months, Wingara has significantly improved its sales, operational and financial position. Wingara has extensively built out its agriculture infrastructure platform, as well as been responsive to its customer base, demand trends and product pricing.

	FY17			FY18			FY19
	(Actual)			(Actual)			(Unaudited)
Revenue	$8.7m		25%	$10.9m		166%	$29m
EBITDA	$0.61m		80%	$1.1m		336%	$4.8m
Assets	$13.6m		71%	$23.3m		101_%_	$47m

Following the trading update in February, Wingara is pleased to announce it has met guidance in each of its key financial benchmarks. The following activities have led to a significant improvement to the overall the financial position of Wingara across the key metrics of Revenue, EBITDA and Assets from FY18 to FY19.

• Expansion of fodder accumulation and storage capacity: The successful accumulation of fodder during the 2019 season puts the Company is in good position to capitalise on strong demand over the next six months.

• Demand for Austco Polar blast freezing and logistic services at a historically high level: Significant demand has led to the implementation of efficiency and capacity improvement programs completed in December 2018. These efficiencies lead to an improvement in underlying EBITDA from Austco Polar when compared to last year.

• Increasing supply capability to meet demand: Phase 1 development of the Raywood facility is now complete. Wingara will have the ability to deliver throughput of up to 110,000 metric tonnes of fodder products per annum to meet increased demand when Phase 2 and 3 are fully completed and operational.

• Export market penetration: Wingara has continued to increase its business profile, partnerships and contracts in Japan, South Korea, China and Taiwan.

“We have made considerable progress over the last year. The acquisition of Austco Polar to the Wingara platform means we have the distribution capability to supply both high quality protein and fodder to meet the increasing demand from Japan, South Korea, China and Taiwan. This is reflected in our financial result with Revenue and EBITDA multiplying for FY19. This provides the ideal platform for further improvements and growth in FY20.”

Gavin Xing, Chairman, Wingara AG Limited

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

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For further information contact:

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

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”)
	31 March 2019
Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 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	6,692 - (1,936) (5,226) (52) (12) (1,784) (360) - 1 (468) - - (56)	29,983 - (7,016) (13,564) (159) (44) (6,639) (2,354) - 21 (1,603) 123 - 2
	(3,201)	(1,250)
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	(442) - - - -	(4,644) (16,329) - - (4,647)

• 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 (12 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	- - - - - - - -	- - - - - - - -
	(442)	(25,620)
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	- - - - 28,412 (26,025) (180) - -	50 - - - 48,283 (29,405) (180) - -
	2,207	18,748
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	2,115 (3,201) (442) 2,207 (15)	8,702 (1,250) (25,620) 18,748 84
	664	664

• 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(Amount excludes bank overdraft of $573k which is shown as current liability)	664 - - -	2,115 - - -
	664	2,115
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 1.2 126 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
		126
		-

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	27,332.5	27,239.5
8.2	Credit standby arrangements	97.5	97.5
8.3	Other (ePay/Corporate Card)	40	-
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	Drawdown	Interest
		($,000)	($,000)	Rate
	Inventory Loan Facility–Elect Performance	5,000	5,000	BBSY + 1.73
	Asset finance facility	1,586	1,560	4.94%
	Bank overdraft	600	573	7.39%
	Standby Letter of Credit or Guarantee Facility	97.5	97.5
	Bank Bill Facility-Austco Polar	13,250	13,250	BBSY + 1.73
	WestpacFacility- ElectPerformance	6,759	6,759	BBSY+1.73
	Corporate Card	40	-
	Totals	27,332.5	27,239.5

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		- (2,000) - - (1,820) (420) -
		(4,240)
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	-		-
10.2 Place of incorporation or registration	-		-
10.3 Consideration for acquisition or disposal	-		-
10.4 Total net assets	-		-
10.5 Nature of business	-		-

• 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.

Sign here: Zane Banson Date: ....30 April 2019............

Print name: Zane Banson Director

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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