WINGARA AG LTD — Interim / Quarterly Report 2020

Jan 30, 2020

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

==> picture [98 x 30] intentionally omitted <==

ASX Announcement

31 January 2020

WINGARA 4C COMMENTARY Q3, FY20 Highlights

Wingara AG Limited (“Wingara” or “the Company”) owns and operates value-add, mid-stream assets specialising in the processing, storage and marketing of agriculture produce for export markets through two business: JC Tanloden (JCT), and Austco Polar Cold Storage (APCS). Wingara is pleased to provide its 4C report demonstrating a continued organic growth trajectory.

	Q1 FY19	Q2 FY19	Q3 FY19	Q4 FY19	Q1 FY20	Q2 FY20	Q3 FY20
	30 Jun 18	30 Sep 18	31 Dec 18	31 Mar 19	30 Jun 19	30 Sep 19	31 Dec 19
Receipts from customers	$6.05m	$8.78m	$8.45m	$6.69m	$7.63m	$8.13m	$9.34m
Net cash from Operating activities	$1.03m	$2.02m	($1.10m)	($3.20m)	$1.93m	$1.09m	($1.13m)
Hay volumes MT (JCT)	10,421	18,695	10,257	6,895	8,175	9,125	10,449
Blast cartons (Austco)	448,435	334,044	471,237	562,648	488,852	412,492	712,118

In summary, the following key highlights have contributed to an overall improvement to the Company’s results:

• Receipts from customer: Continued growth in customer receipts driven by both the JCT and APCS businesses. We expect a similar trend in the 4[th] quarter.

• APCS: Significant increase in blast cartons driven by client demand due to timing of Christmas and Lunar New Year. We project volumes in excess of 450k cartons in the next quarter based on the same period in the previous year.

• JCT: The Wingara grower catchment area has experienced favourable weather conditions this season with above average volumes and consistent export quality. Delivery of new season hay inventory commenced during Q3 with Epsom and Raywood sites having received in excess of 26k MT. Both export and domestic demand continues to remain strong with 2.5k MT, 3.7k MT, and 4.3k MT processed during October, November and December respectively.

• Capital expenditure: Continued investment in the business through capital expenditure during the quarter has seen significant improvements in APCS blast freezing efficiency; and further enhancement to our hay press machinery.

Wingara continues its growth strategy to build a sustainable platform for processing and marketing agricultural products. The primary focus being the dairy and meat sectors. Wingara differentiates itself through a reputation for high-quality service to both our primary producers and Asian importer endcustomers.

The Appendix 4C continues

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

==> picture [98 x 30] intentionally omitted <==

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

Name of entity
Wingara AG Ltd
ABN	Quarter ended (“current quarter”)
58 009 087 469	31 December 2019

Consolidated statement of cash flows	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	9,340	25,096
1.2	Payments for
	(a) research and development	-	-
	(b) product manufacturing and operating	(2,819)	(6,989)
	costs
	Hay purchases	(3,510)	(5,768)
	(c) advertising and marketing	(22)	(76)
	(d) leased assets	(673)	(1,276)
	(e) staff costs	(3,080)	(7,664)
	(f) administration and corporate costs	(242)	(643)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	5	5
1.5	Interest and other costs of finance paid	(116)	(785)
1.6	Income taxes paid	(5)	(5)
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	(4)	(1)
1.9	Net cash from / (used in) operating	(1,126)	1,894
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(620)	(1,392)
	(b) businesses (see item 10)	-	-

• 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	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(9 months)
			$A’000
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a) property, plant and equipment	-	21,028
	(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)	(50)	(50)
2.6	Net cash from / (used in) investing	(670)	19,586
	activities
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	(40)	(40)
	shares, convertible notes or options
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(410)	(19,694)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	(110)	(205)
3.10	Net cash from / (used in) financing	(560)	(19,939)
	activities
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	4,556	664
4.2	Net cash from / (used in) operating	(1,126)	1,894
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(670)	19,586
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	(560)	(19,939)
	(item 3.10 above)

• See chapter 19 for defined terms

1 September 2016

Page 2

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(9 months)
			$A’000
4.5	Effect of movement in exchange rates on	(9)	(14)
	cash held
4.6	Cash and cash equivalents at end of	2,191	2,191
	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	2,191	4,556
5.2	Call deposits
5.3	Bank overdrafts*
5.4	Other (provide details)
5.5	Cash and cash equivalents at end of	2,191	4,556
	quarter(*Amount excludes bank overdraft of $13k
	which is shown as current liability)
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		162
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

==> picture [430 x 46] intentionally omitted <==

7.	Payments to related entities of the entity and their	Current quarter
	associates	$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

==> picture [430 x 47] intentionally omitted <==

• See chapter 19 for defined terms 1 September 2016

Page 3

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

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities 9,623 8,870 8.2 Credit standby arrangements 80 80 8.3 Other (please specify) 40 - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. Facility Facility Limit ($,000) Drawndown ($,000) Interest Rate Inventory Loan Facility 5,000 5,000 BBSY+1.46 Assetfinancefacility 1,414 1,247 4.94% Bank overdraft 600 13 6.84% Standby Letter of Credit or Guarantee Facility 80 80 Westpac Facility-Elect Performance Group 2,610 2,610 BBSY+1.80 Corporate Card 40 - Totals 9,743 8,950	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities 9,623 8,870 8.2 Credit standby arrangements 80 80 8.3 Other (please specify) 40 - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. Facility Facility Limit ($,000) Drawndown ($,000) Interest Rate Inventory Loan Facility 5,000 5,000 BBSY+1.46 Assetfinancefacility 1,414 1,247 4.94% Bank overdraft 600 13 6.84% Standby Letter of Credit or Guarantee Facility 80 80 Westpac Facility-Elect Performance Group 2,610 2,610 BBSY+1.80 Corporate Card 40 - Totals 9,743 8,950	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities 9,623 8,870 8.2 Credit standby arrangements 80 80 8.3 Other (please specify) 40 - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. Facility Facility Limit ($,000) Drawndown ($,000) Interest Rate Inventory Loan Facility 5,000 5,000 BBSY+1.46 Assetfinancefacility 1,414 1,247 4.94% Bank overdraft 600 13 6.84% Standby Letter of Credit or Guarantee Facility 80 80 Westpac Facility-Elect Performance Group 2,610 2,610 BBSY+1.80 Corporate Card 40 - Totals 9,743 8,950	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities 9,623 8,870 8.2 Credit standby arrangements 80 80 8.3 Other (please specify) 40 - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. Facility Facility Limit ($,000) Drawndown ($,000) Interest Rate Inventory Loan Facility 5,000 5,000 BBSY+1.46 Assetfinancefacility 1,414 1,247 4.94% Bank overdraft 600 13 6.84% Standby Letter of Credit or Guarantee Facility 80 80 Westpac Facility-Elect Performance Group 2,610 2,610 BBSY+1.80 Corporate Card 40 - Totals 9,743 8,950
	Facility	Facility Limit ($,000)	Drawndown ($,000)	Interest Rate
	Inventory Loan Facility	5,000	5,000	BBSY+1.46
	Assetfinancefacility	1,414	1,247	4.94%
	Bank overdraft	600	13	6.84%
	Standby Letter of Credit or Guarantee Facility	80	80
	Westpac Facility-Elect Performance Group	2,610	2,610	BBSY+1.80
	Corporate Card	40	-
	Totals	9,743	8,950

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development
9.2	Product manufacturing and operating costs		(4,000)
9.3	Advertising and marketing		(50)
9.4	Leased assets		(600)
9.5	Staff costs		(2,400)
9.6	Administration and corporate costs		(500)
9.7	Other (provide details if material)
9.8	Total estimated cash outflows		(7,550)

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

• See chapter 19 for defined terms 1 September 2016

Page 4

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: (Director)

Date: 31/01/2020...

Print name: Zane Banson......................................

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

Page 5