Australian Agricultural : FY22 Half Year Results Presentation

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Summary information only

This presentation contains general information about the Australian Agricultural Company Limited and its consolidated entities ("AACo") and its activities current as at the date of this presentation. It is provided in summary and does not purport to be complete. You acknowledge and agree that you will rely on your own independent assessment of any information, statements or representations contained in this presentation and such reliance will be entirely at your own risk.

Disclaimer

AACo and its related bodies corporate and associated entities and each of their respective officers, employees, associates, agents, auditors, independent contractors and advisers, do not make any representation, guarantee or warranty, express or implied, as to the accuracy, completeness, currency or reliability (including as to auditing or independent verification) of any information contained in this presentation and do not accept, to the maximum extent permitted bylaw:

1. any responsibility arising in any way for any errors in or omissions from any information or for any lack of accuracy, completeness, currency or reliability of any such information made available;
2. any responsibility to provide any other information or notification of matters arising or coming to their notice which may affect any information provided; and
3. any liability for any loss or damage (whether under statute, in contract or tort for negligence or otherwise) suffered or incurred by any person as a result of or in connection with a person or persons using, disclosing, acting on or placing reliance on any information contained in or omitted from this presentation, whether the loss or damage arises in connection with any negligence, default or lack of care or from any misrepresentation or any other cause.

Forward-looking statements

This presentation may contain forward-looking statements. All statements other than statements of historical facts included in this presentation are forward-looking statements. Forward-looking statements may include, without limitation, statements relating to AACo's financial position and performance, business strategy, plans and objectives of management for future operations. Forward-looking statements involve known and unknown risks, uncertainties and other factors (many of which are beyond AACo's control) and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. Some of the important factors that could cause AACo's actual results, performance or achievement to differ materially from those in any forward-looking statements include (among other things): the risks and uncertainties associated with the ongoing impacts of COVID-19, levels of demand and market prices, climatic conditions, the impact of foreign exchange currency rates on market prices and operating costs, political uncertainty and general economic conditions in Australia and overseas, the ability to produce, process and transport goods and livestock profitably, the actions of competitors and activities by governmental authorities. Forward-looking statements should not be relied on, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. No representation, guarantee, or warranty (express or implied) is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, projections or forward-looking statements contained in this presentation. Except as required by applicable regulations or by law, AACo does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. This presentation should not be relied upon as a recommendation or forecast byAACo.

No offer of securities

Nothing in this presentation should be construed as either an offer or invitation to sell or a solicitation of an offer to buy or sell AACo securities in any jurisdiction.

Non-IFRS information

Operating Profit and Statutory EBITDA are unaudited, non-IFRS financial information. These terms are further defined in the definition section of the presentation located in the appendix.

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Executive Summary

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H1 FY22 Progress

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Commercial Overview

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Financial Performance

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Sustainability Strategy Framework

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Operating Environment

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• Operating Profit of $30.0M up vs pcp $23.5M1 driven by improved operating margins mainly through:
• • Improvements in average Wagyu meat sale price of 9% per KgCW.
  • Higher cattle sales margins supported by record trading and restocker cattle market prices.
• Net Profit after tax of $83.2M vs pcp ($1.7M) loss.
• Westholme and Darling Downs now represent 83% of branded meat sales2.
• Developed our Sustainability Strategy Framework, helping to support positive change through our business, industry and communities.
• Successful refinance of Club Debt facilities completed with increased capacity and flexibility.
• Continued growth in NTA with an increase of 7% to $1.88/share vs pcp, and net assets now exceed $1.1B.

Note 1: Operating Profit ex JobKeeper H1 FY21 $16.8M.

Note 2: Branded meat sales represents total meat sales excluding trim.

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• AACo's lower calving levels in previous years (due to prolonged drought and the Gulf flood event) have continued to impact meat sales volume in H1 FY22 (down ~8% v pcp). This is consistent with broader industry decreases in slaughter rates which are at 36 year lows.
• AACo's previous years lower calving levels are expected to continue to impact meat sales volume available for sale into H2 FY22 and FY23 due to the ~3.5 year F1 Wagyu animal lifecycle.
• Positively, increased brandings during the period have contributed to an overall increase in total live weight kilograms produced of 31% vs pcp.

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