Slide 1: 1H25 Financial Results Presentation
1H25 FINANCIAL RESULTS PRESENTATION 21 FEBRUARY 2025 Bostock Brothers farm, Hawke’s Bay, New Zealand
Slide 2: 1H25 Results Webcast
1H25 RESULTS WEBCAST This presentation accompanies the live webcast, to be hosted by Andrew Reeves (CEO & MD) and Gary Mallett (CFO), scheduled for 10.00am AEDT on 21 February 2025. To register and join the webcast, please use the following link: ➢ https://meetings.lumiconnect.com/300-256-852-872 We
Slide 3: Disclaimer
DISCLAIMER Important notice The material in this presentation is general background information about the activities of Inghams Group Limited (Inghams) and its subsidiaries (Inghams Group), and is current at the date of this presentation, unless otherwise noted. The content is information given in s
Slide 4: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY We respectfully acknowledge the traditional owners both past and present, as custodians of this land we are meeting on today. 1H25 Results Presentation | 21 February 2025 Artist: Kelly Taylor www.ktaboriginalfineart.store 4
Slide 5: 1H25 Highlights
1H25 HIGHLIGHTS Andrew Reeves Chief Executive Officer & Managing Director Broiler farm, Queensland
Slide 6: Strong 1H25 Financial Results and FY25 Guidance Reaffirmed
STRONG 1H25 FINANCIAL RESULTS AND FY25 GUIDANCE REAFFIRMED ➢ 1H25 EBITDA pre AASB 16 is the 2nd highest first half earnings result since listing 1H EBITDA PRE-AASB 16 SINCE FY19 ($M) • Feed costs moderated during 1H25 • Strong cost management outcomes substantially offset inflation 138.4 • Revenue d
Slide 7: 1H25 Key Performance Indicators
1H25 KEY PERFORMANCE INDICATORS Group Australia New Zealand Core Poultry volume (kt) 234.2 196.4 37.8 Change on PCP (%) (2.7) (4.1) 5.0 1 Core poultry net selling price ($/kg) 6.34 6.42 6.53 Change on PCP (%) 1.0 1.6 0.6 EBITDA (Underlying pre AASB 16) ($M) 124.0 100.6 23.4 Change on PCP (%) (10.4)
Slide 8: Core Poultry Volume
CORE POULTRY VOLUME ▪ 1H25 core poultry volume declined 2.7% versus PCP - Australian volume declined primarily due to a temporary reduction in bird CORE POULTRY VOLUME (KT) processing versus PCP to manage both inventory levels in 2H24 and the transition to the new Woolworths supply agreement 1H24 2H
Slide 9: Observations Across Our Channels
OBSERVATIONS ACROSS OUR CHANNELS Group core poultry volume declined 2.7% versus PCP; increased 3.2% on 2H241 CHANGE IN CORE POULTRY VOLUME (KT) VS PCP COMMENTS2 Australia New Zealand • In Australia, the Retail channel growth reflects the shift toward in-home 2.5 KT dining in response to cost-of-livi
Slide 10: Core Poultry Net Selling Prices ($/Kg) (NSP)
CORE POULTRY NET SELLING PRICES ($/KG) (NSP) 1H25 NSP change in channel mix, with growth in Retail partially offset by lower Wholesale pricing GROUP CORE POULTRY NET SELLING PRICES ($/KG) ▪ Group core poultry NSP increased 1.0% versus PCP to $6.34 ‐ Contribution to Group NSP from the acquisition of
Slide 11: Financial Results
FINANCIAL RESULTS Gary Mallett Chief Financial Officer Broiler farm, Queensland
Slide 12: Profit & Loss
PROFIT & LOSS ▪ Core Poultry volume declined 2.7% versus PCP, with Australia -4.1% and New Zealand +5.0% ‒ 1H25 volumes increased 3.2% versus normalised 2H24 1 levels ($M) 1H25 1H24 Variance % ▪ Revenue declined 1.9%, due to a reduction in core poultry volume, partially offset by an increase (+1.0%)
Slide 13: Balance Sheet
BALANCE SHEET $M Dec-24 Jun-24 Variance ▪ Inventories/Biologicals declined $27.5M, including: Inventories/Biologicals 383.7 411.2 (27.5) ‒ Seasonal reduction in Turkey inventory (-$12.0M) Receivables 295.5 237.7 57.8 ‒ Benefit from inventory management initiatives implemented to Payables (451.0) (42
Slide 14: Cash Flow
CASH FLOW ($M) 1H25 1H24 Variance ▪ Cash conversion ratio improved 5.4pp versus PCP to 94.5% from EBITDA 210.4 253.7 (43.3) reduced inventory levels and lower feed prices Non-cash items (4.6) (2.5) (2.1) Changes in operating working capital1 (11.6) (30.6) 19.0 ▪ Capital expenditure and Acquisitions
Slide 15: Capital Expenditure
CAPITAL EXPENDITURE ▪ Sustaining capex Stay-in-Business capex spend of $26.9M, 91% of depreciation pre AASB 16 ($29.7M), includes Osborne Park water treatment plant and live bird holding, Sorell carbon neutral expansion, primary processing equipment updates ▪ Investing capex Core & High growth proje
Slide 16: Net Debt and Leverage
NET DEBT AND LEVERAGE Leverage comfortably within target range with refinancing providing future funding flexibility Group Net Debt and Leverage Debt maturity profile ($M) (Underlying; pre AASB 16) 600 2.5 2.0x 500 1.7x 1.8x 1.8x 2.0 1.5x 400 1.3x 1.4x 1.2x 1.5 300 0.7x 1.0 200 0.5 100 298.0 145.0 2
Slide 17: Capital Management Outcomes
CAPITAL MANAGEMENT OUTCOMES NET INTEREST, TAX AND CASHFLOW FROM OPERATIONS CASHFLOW FOR INVESTING ACTIVITIES LEASE PAYMENTS 1H25 Cash realisation Investing & dividends Service obligations outcomes SUSTAINING CAPITAL1 Annual spend of 75-90% of depreciation (pre AASB 16) on stay-in-business requiremen
Slide 18: Feed Market Observations
FEED MARKET OBSERVATIONS Pricing of key feed inputs has continued to moderate during 1H25 LONG TERM WHEAT & SOYMEAL EXTERNAL MARKET PRICING1 ($A PER METRIC TONNE) 800 Internal feed cost mostly contains cereal grains, 1 protein meals, vitamins and minerals 700 Wheat ($A) CME Soy ($A) 600 Inghams feed
Slide 19: Segment Performance
SEGMENT PERFORMANCE Andrew Reeves Chief Executive Officer & Managing Director Broiler farm, New Zealand
Slide 20: Australia
AUSTRALIA ($M) 1H25 1H24 Variance % ▪ Core Poultry volume declined 4.1% versus PCP – Retail channel growth more than offset by declines across Core Poultry volume (kt) 196.4 204.8 (8.4) (4.1) QSR, Wholesale and Export Total Poultry volume (kt) 250.6 252.7 (2.1) (0.8) ▪ External Feed volume increased
Slide 21: New Zealand
NEW ZEALAND ▪ Core Poultry volume increased 5.0% versus PCP, driven by growth in ($M) 1H25 1H24 Variance % Retail and Export channels, supported by the BBL acquisition which Core Poultry volume (kt) 37.8 36.0 1.8 5.0 contributed 2.9 percentage points to NZ growth ▪ External Feed volumes declined 5.1
Slide 22: Bostock Brothers (NZ) Integration Update
BOSTOCK BROTHERS (NZ) INTEGRATION UPDATE Strategic alignment Acquisition of BBL aligns with Inghams’ strategy to establish the Company as the leading premium operator in the New Zealand market: ▪ Strong brand recognition and a premium organic product range ▪ Vertically integrated supply chain enhanc
Slide 23: Outlook
OUTLOOK Andrew Reeves Chief Executive Officer & Managing Director Essington Distribution Centre, South Australia
Slide 24: Guidance & Outlook
GUIDANCE & OUTLOOK Reaffirming guidance1 for FY25 - Underlying EBITDA (pre AASB 16) in the range of $236 - $250 million, representing flat to ~6% growth on normalised FY24 (52- week) result - Core poultry volume change of -1% to -3% on FY24 (normalised3) ▪ FY25 core poultry volume outlook reflects t
Slide 25: Compelling Investment Proposition
COMPELLING INVESTMENT PROPOSITION Inghams provides investors with a robust and attractive earnings profile Operates at scale in an Affordable, healthy, Decades long Grow category attractive market with versatile and widely partnerships with major attractiveness by positive outlook for favoured prote
Slide 26: Thank You
Slide 27: Appendix
APPENDIX Free range broiler farm, Waikato region, New Zealand
Slide 28: Appendix: AASB Lease Impact
APPENDIX: AASB 16 LEASE IMPACT Balance Sheet: Balance Sheet $M 1H25 AU NZ 1H24 ▪ Land and Buildings: Inghams has a large leased property portfolio. Land & Buildings 749.9 622.8 127.1 778.6 Average term remaining on the portfolio is 11.0 years Growers 101.5 90.8 10.7 410.8 Equipment 12.3 10.2 2.1 17.
Slide 29: Appendix: AASB Profile
APPENDIX: AASB 16 PROFILE Right-of-use Assets $M Grower Lease Liability $M Grower L&B/Other L&B/Other 602 501 487 516 476 445 462 446 259 240 972 945 928 923 828 859 858 830 792 880 FY20A FY21A FY22A FY23A FY24A FY25F FY26F FY27F FY28F FY29F FY20A FY21A FY22A FY23A FY24A FY25F FY26F FY27F FY28F FY29
Slide 30: Appendix: Profit & Loss Reconciliation
APPENDIX: PROFIT & LOSS RECONCILIATION Excluded from 1H25 AASB 16 1H25 Underlying 1H24 Underlying Profit & Loss $M 1H25 underlying Underlying Leases (pre AASB 16) (pre AASB 16) Core Poultry volume (kt) 234.2 234.2 234.2 240.8 By-Products volume (kt) 60.2 60.2 60.2 55.0 Total Poultry volume (kt) 294.
Slide 31: Appendix: Segment EBITDA Reconciliation
APPENDIX: SEGMENT EBITDA RECONCILIATION Group Australia New Zealand $M 1H25 1H24 Var 1H25 1H24 Var 1H25 1H24 Var Core Poultry volume (kt) 234.2 240.8 (6.6) 196.4 204.8 (8.4) 37.8 36.0 1.8 Total Poultry volume (kt) 294.4 295.8 (1.4) 250.6 252.7 (2.1) 43.8 43.1 0.7 Core Poultry Revenue 1,485.6 1,511.3
Slide 32: Appendix: NPAT Reconciliation
APPENDIX: NPAT RECONCILIATION $M 1H25 1H24 Var % NPAT 51.5 63.4 (11.9) (18.8) Property reassignment 0.0 (1.5) 1.5 (100.0) Business acquisitions & integration 1.8 0.4 1.4 350.0 costs Legal settlement 2.0 0.0 2.0 - Restructuring 0.7 0.0 0.7 - Excluded from Underlying 4.5 (1.1) 5.6 (509.1) Underlying N
Slide 33: Definitions
DEFINITIONS NON-IFRS INFORMATION REFERRED TO IN THIS PRESENTATION AND ARE DEFINED BELOW Average Capital Invested: Net assets plus net debt plus tax balance plus net ROIC: Return on Invested Capital; Underlying, pre AASB 16. liabilities of AASB 16; average calculated over two financial year end perio