Slide 1: FY2024 Results Presentation
B2Iry FY2024 RESULTS PRESENTATION Barry Irvin — Executive Chairman Pete Findlay - CEO Gunther Burghardt —- CFO 29 August 2024
Slide 2: Barry Irvin, Executive Chairman
DOUBLE ESPRESSO ROBUSTA & ARA G oa 4 wasn Bee | 500m Barry Irvin Cafe Executive Chairman ma
Slide 3: FY2024 Overview
FY2024 Overview Branded growth + Branded results demonstrate strength and breadth of portfolio - Market leading brands with investment in key growth categories - Strong innovation and in-market execution driving value growth - Strong results in International branded and foodservice expansion + Brand
Slide 4: Financial highlights
Financial highlights Earnings growth and Branded segment margin expansion in FY2024 Net revenue 7 EBITDA nv Profit after tax 7 Basic EPS 7 $164.1m A 2% $29.2m A2% 9.6c A 2% $3 5bn A A4% Normalised Normalised Normalised $165.1m A 15% $30.5m A $260m 10.0c A +85.6c Statutory Statutory Statutory Dividen
Slide 5: Food Company: Creating Great Food
FOOD COMPANY CREATING GREAT FOOD GROW INVEST OUR FOR THE IN OUR EACH AND CONSUMER
Slide 6: Our transformation
Our transformation We have built the capability and focus to grow as a leading branded food business BUILD EXPAND STRENGTH 1899-2000 2001-2016 2017-2020 * Dairy co-operative based in Acquisition of Tatura and Increased brand portfolio with Bega Valley Strathmerton iconic dairy brands * Primarily che
Slide 7: Refreshed sustainability strategy
Refreshed sustainability strategy Our strategy has evolved to meet our sustainability ambitions for the future Our sustainability ambition Leading in circularity through our practices, industry partnerships and effective use, reuse and recycling of our resources. COMMUNITY Making a positive and last
Slide 8: Pete Findlay - CEO
4. Pini Pete Findlay - CEO
Slide 9: Strategic priorities
Strategic priorities Strategy 28: Strengthening our business Grow Branded business + Core domestic grocery * Chilled distribution network servicing petrol & convenience, route, foodservice * Select international markets Enhance capability, efficiency and cost effectiveness + Streamline sites and red
Slide 10: Financial highlights
Financial highlights Earnings growth and Branded segment margin expansion in FY2024 Net revenue 7 EBITDA 74 Profit after tax 7 Basic EPS 7 $164.1m A 2% $29.2m A2% 9.6c A 2% $3 5bn A A4% Normalised Normalised Normalised $165.1m A 15% $30.5m A $260m 10.0c A +85.6c Statutory Statutory Statutory Dividen
Slide 11: Branded business momentum
Branded business momentum Sustained leading market positions and grew value Brands sustained leading market positions and volume while achieving value growth + Pricing initiatives partially mitigated cost impacts, while supply efficiency programs enabled Branded margin expansion * Growth in volume a
Slide 12: Brand innovation
Brand innovation Expanded portfolio in core categories Yoghurt category is highly responsive to new product development + New pouch formats: Farmers Union Greek Yoghurt Kids and YOP with no sugar added + New Dairy Farmers Thick & Creamy indulgent layered range Innovation helps cement Bega’s milk bev
Slide 13: Core brand growth
Core brand growth Focused investment enabled growth Ongoing investment in iconic brands + Vegemite’s 100-year anniversary activity led to a growth rate of nearly twice the total spreads category + Farmers Union achieved 11% retail sales growth with new advertising Portfolio well positioned for consu
Slide 14: International market expansion
International market expansion Record year for Branded in Asia and Middle East * Branded international sales of $257 million, up 11% on FY2023 Asian growth and prospects remain strong despite subdued China demand + South-East Asian operations performing well * Continuing expansion through partnershi
Slide 15: Brand momentum
Brand momentum Iconic brands leading revenue and margin growth Branded now represents 86% of Group external revenue! in FY2024 $3.5b $3.0b $2.5b $2.0b $1.5b Branded $1.0b $0.5b Bulk $0.0b 2021 2022 Financial Year Branded Normalised EBITDA margin FY2024 Branded segment EBITDA margin improved due to c
Slide 16: Brand shares — Australian retail categories
Brand shares — Australian retail categories Market leading brands in growth categories Category Fresh white milk Yoghurt Milk based beverages Spreads Chilled juice Creams and custards Water ice 6292, Category size $m 2144 1,919 1,012 742 604 648 68 Category Annual growth 2% 1% 8% 5% 4% 8% 15% 11% 25
Slide 17: Consumer trends
Consumer trends Four areas shaping portfolio and activation priorities for the future Functional Demographic Health Evolution i 4 ~ Cost of living pressUres see Continuing desire for. Australia trends towards: consumers shift to seek better functional foods that enhance smaller and more ethnically v
Slide 18: Disconnect between farm gate milk prices and commodity prices
Disconnect between farm gate milk prices and commodity prices continued throughout the year Focus on higher value commodities and nutritional products Responded to commodity markets changes to optimise revenue streams from milk solids Strengthening connection between Bulk and Branded business units
Slide 19: Australian milk production
Australian milk production Volumes are stable Milk production volumes stabilised at 8.4 billion litres in response to farm gate prices in FY2024 12 10 oo o 95 96 97 98 9900 010203040506070809 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 Financial Years 1995 - 2024 Source: Dairy Australia 6292,
Slide 20: Farm gate milk price and market returns
Farm gate milk price and market returns Improved alignment between farm gate and commodity prices for FY2025 Subdued demand saw global dairy commodity prices hit lows in Sept 2023 followed by a mild rally Key themes: 1.00 + Persistent industry theme of capacity rationalisation and cost management 10
Slide 21: Manufacturing facility update
Manufacturing facility update Streamlined and simplified footprint Key FY2024 Initiatives Malande Sea Tolga Canberra site sale in IH FY2024 Tasmania consolidation into Lenah Valley in 2H FY2024 Agreement to sell Leeton juice primary processing facility in August 2024 further simplifies supply networ
Slide 22: Investing in line with strategy
Investing in line with strategy Restructuring program improved efficiency and customer focus of Branded business and back office delivering >$22m annualised savings + $12m in-year savings delivered in FY2024; remainder to be achieved in FY2025 + Sales organisation aligned to key channels Maintained
Slide 23: Major sustainability initiatives
Major sustainability initiatives Highlights of sustainability work conducted in FY2024 Commitments * 40% reduction in absolute scope 1 & 2 emissions by 2030 (FY2021 base year) * 30% reduction in water use by 2030 (FY2021 base year) * Net Zero by 2050 * 40:40:20 HESTA by 2030 Bega Circular Valley 203
Slide 24: Gunther Burghardt — CFO
Gunther Burghardt — CFO
Slide 25: Profit and loss
Profit and loss NemieliSea FY2024 | FY2023] +/-% $ millions Net Revenue 3,521.6 3,376.0 4% EBITDA 164.1 160.2 2% D&A (88.0) (101.9) (14)% EBIT 76.1 58.3 31% Net Finance Costs (34.5) (23.1) 49% Profit Before Tax 41.6 35.2 18% Tax (12.4) (6.7) 85% Profit After Tax 29.2 28.5 2% Basic EPS (cents per sha
Slide 26: Reconciliation of normalised result
Reconciliation of normalised result Pered Erg 30 June 2024 Re soe onl Restructuring rs a Poe ($ million) Statements Revenue 3,521.6 - - - - Cost of sales (2,823.1) - - - - Gross Profit 698.5 - - : - EBITDA 165.1 (13.2) 5.3 6.9 - Depreciation, amortisation and impairment (90.8) - - 28 - EBIT 74.3 (13
Slide 27: Profitability overview
Profitability overview Focus on high value categories fuels Branded business while efficiency programs expand margin; disconnect between farm gate milk and commodities results in Bulk loss $ million (84.0) Ee Branded Branded ——— | cost efficiency Bulk 3.8 (97) Branded & value Inter- : vol/mix/price
Slide 28: Key performance measures
Key performance measures $ millions unless otherwise stated Key callouts: (Normalised) UU Paws) CHEMIE + Branded revenue growth 6% Net Revenue Growth vs prior year 4.3% 12.2% + Margin expansion in Branded Gross margin (% of Net Revenue) 19.8% 19.4% 0.4 pts + Financing costs impacted by full year imp
Slide 29: Segments
Segments Unallocated || mel ($ million) Branded Overheads segment elimination External Revenue * 3,039.3 482.3 - - 3,521.6 Growth vs FY2023 % 6% (3)% - - 4% Normalised EBITDA 199.9 (18.2) (20.1) 2.5 164.1 Increase/(decrease) vs FY2023 71.1 (61.3) (9.7) 3.8 3.9 Branded + Category growth and Bega port
Slide 30: Cash flow
Cash flow Cashflow Receipts from customers Payments to suppliers and employees Net proceeds from Trade Receivables Facility Net interest and other costs of financing paid Income tax paid Operating activities Investments in new PP&E and intangibles Net proceeds from sale of PP&E, intangibles & invest
Slide 31: Balance sheet
Balance sheet Balance Sheet* Pee: PAWS $m $m Cash 65.6 Trade and other receivables 350.9 Inventories 358.1 Property, plant and equipment 673.4 Right-of-use assets 150.8 Intangible assets 476.6 Total Assets 2,138.8 Trade and other payables 558.4 Borrowing (net of costs) 226.7 Lease liabilities 192.2
Slide 32: Pete Findlay - CEO
y > Bcc om Pete Findlay - CEO
Slide 33: Where we are today
Where we are today + Iconic leading brands * Integrated manufacturing and processing infrastructure + Agile response to changing markets * Strong strategic positioning + Branded acquisitions ahead of business case * Opportunities for further branded innovation, promotional excellence, efficiency pro
Slide 34: Looking forward
Looking forward Creating value for our shareholders FY2025 is second year of our five-year strategic plan Challenging consumer environment in FY2025 * Focus on growth in core categories * Cost management and efficiency vital to continue earnings growth * Branded segment FY2025 EBITDA mid-single-digi
Slide 35: Questions
DOUBLE ESPRESSO ROBUSTA & ARA G oa 4 wasn Bee | 500m Barry Irvin Cafe Executive Chairman ma
Slide 36: Slide 36
Slide 37: Appendix - glossary
Appendix - glossary a Basic EPS CMV D&A Dairy solids EBIT EBITDA EBITDA margin Funds employed 1H, 2H Leverage ratio Material items. MBB Net debt Normalised P&C Return on funds employed (ROFE) YOY Basic earnings per share calculated by dividing net profit (or loss) after tax by the weighted average n
Slide 38: Disclaimer
Disclaimer This presentation contains a summary of information about Bega Cheese Limited ACN 008 358 503 (BGA) and its subsidiaries (Bega Group). The information does not purport to be complete and should be read in conjunction with other BGA ASX announcements. The presentation may contain statement