Australian Agricultural : AACo FY17 Financial Report

Australian Agricultural Company Limited

ABN 15 010 892 270

FINANCIAL REPORT 2017

Your Directors submit their report for the year ended 31 March 2017.

DIRECTORS

The names and details of the Company's Directors in office during the financial period and until the date of this report are set out in the following section. All of the Directors were in office for the entire period unless otherwise stated.

Donald McGauchie AO, FAICD (Non-executive Chairman)

Mr McGauchie was appointed a Director on 19 May 2010 and subsequently Chairman on 24 August 2010. Mr

McGauchie is the Chairman of the Nomination Committee and a member of the Staff and Remuneration Committee.

Mr McGauchie is currently Chairman of Nufarm Limited and Director of GrainCorp Limited. His previous roles with public companies include Chairman of Telstra Corporation Limited, Deputy Chairman of Ridley Corporation Limited, Director of National Foods Limited, Chairman of Woolstock, Chairman of the Victorian Rural Finance Corporation (statutory corporation), Director of James Hardie Industries plc, and also President of the National Farmers Federation. During 2011 he retired as a member of the Reserve Bank Board. In 2001 Mr McGauchie was named the Rabobank Agribusiness Leader of the Year, was later awarded the Centenary Medal for services to Australian society through agriculture and business and in 2004 was appointed an Officer of the Order of Australia.

During the past three years, Mr McGauchie has served as a Director of the following listed companies:

>James Hardie Industries plc - resigned August 2016;

>Nufarm Limited* - appointed December 2003; and

>Graincorp Limited* - appointed December 2009.

* Denotes current Directorship

Jason Strong

Mr Strong was appointed Managing Director/Chief Executive Officer on 24 January 2014. He has led the ongoing transformation of AACo to a luxury branded beef business.

Mr Strong has more than 25 years' experience across the beef supply chain, and brings significant industry knowledge, commercial experience and strategic marketing capabilities to the Company. He joined AACo in 2012 from Meat & Livestock Australia (MLA) where he was Regional Manager Europe with responsibility for Marketing and Business development in the European and Russian markets for the Australian red meat industry. Prior to the MLA appointment in Europe, Mr Strong was Head of New Market Development for Pfizer Animal Genetics, a role

that started in sales and operations for bio tech start up Catapult Genetics that included business development and

market expansion in Australia, North and South America and Europe.

Mr Strong played a key role in the development and implementation of Australia's meat grading system - Meat Standards Australia. During this time he developed an extensive knowledge of meat retailing through an involvement in high quality Brisbane butcher shops.

Mr Strong is a director of Nucleus Biologics and all AACo subsidiaries. He has been actively involved in broader industry activities as a past Chairman and Director of the Australian Beef Industry Foundation and one of the drivers behind the establishment and development of the Intercollegiate Meat Judging program.

During the past three years, Mr Strong has not served as a Director of any other listed company.

DIRECTORS (continued)

Stuart Black AM, FCA, FAICD, BA (Accounting)

Mr Black was appointed a Director on 5 October 2011. Mr Black is Chairman of the Audit and Risk Management

Committee and a member of the Nomination Committee.

Mr Black has extensive experience in agribusiness. He is a current non-executive director of NetComm Wireless Limited and TPI Enterprises Ltd, a former director of Coffey International Limited, and a Past President of the Institute of Chartered Accountants of Australia. He was the inaugural Chair and is a current Board Member of the Australian Accounting Professional and Ethical Standards Board. Mr Black is Chairman of the Chartered Accountants Benevolent Fund Limited and a director of Country Education Foundation of Australia Limited.

In 2012 he was appointed a Member of the Order of Australia for services to the profession of accounting, to ethical standards, as a contributor to professional organisations and to the community.

During the past three years Mr Black has served as a Director of the following listed companies:

>Coffey International Limited - resigned November 2014;

>NetComm Wireless Limited* - appointed March 2013; and

>TPI Enterprises Ltd* - appointed June 2016

*Denotes current Directorship

David Crombie AM, BEcon (UQ)

Mr Crombie was appointed a Director on 5 October 2011. Mr Crombie is a member of the Staff and Remuneration Committee and is a member of the Audit and Risk Management Committee and the Nomination Committee.

Mr Crombie is a Director of Alliance Aviation Services Limited and Barrack Street Investments Limited. He was a founding Partner and is currently a Non-executive Director of the Palladium Group (formerly GRM International). He is former Commissioner of the Australian Centre for International Agricultural Research (ACIAR) and a Director of

Foodbank (QLD). Mr Crombie is a former President of the National Farmers Federation, former Chairman of MLA and a

former Director of Grainco Australia, the Meat Industry Council and Export Finance Insurance Corporation. Mr Crombie operates family properties, breeding cattle and farming in southern Queensland.

During the past three years Mr Crombie has served as a Director of the following listed companies:

>Alliance Aviation Services Limited* - appointed October 2011; and

>Barrack Street Investments Limited* - appointed June 2014.

* Denotes current Directorship

Tom Keene B Ec, FAICD

Mr Keene was appointed a Director on 5 October 2011. Mr Keene is a member of the Audit and Risk Management

Committee, the Nomination Committee and Chair of the Staff and Remuneration Committee.

Mr Keene has had an extensive career in agriculture and is the former Managing Director of Graincorp Limited, and is currently a Director of the integrated timber business Midway Limited. He is also the former Chairman of Grain Trade Australia Limited and a former Director of Cotton Seed Distributors Limited.

In 2007, Mr Keene was named the NAB Agribusiness Leader of the Year.

During the past three years Mr Keene has served as a Director of the following listed companies:

>Midway Limited* - appointed August 2008.

* Denotes current Directorship

DIRECTORS (continued)

Dr Shehan Dissanayake Ph.D.

Dr Shehan Dissanayake was appointed a Director on 27 April 2012 and appointed an Executive Director on 11 April 2017. Dr Dissanayake is a senior Managing Director and member of the Board of Directors of the Tavistock Group, a privately held investment company. He has responsibility for portfolio strategy across 200 companies in 15 countries, and is CEO of Tavistock Life Sciences, an operating unit of the Tavistock Group.

Before joining Tavistock Group in 2002, Dr Dissanayake was a Managing Partner of Arthur Andersen with responsibility for strategy and business planning for the global legal, tax and HR Consulting Divisions of the firm, encompassing 1,600 partners and 15,000 professionals.

Earlier in his career, Dr Dissanayake was involved in the medical research and technology industries. He holds a Ph.D. in Pharmacological and Physiological Sciences from the University of Chicago.

During the past three years Dr Dissanayake has not served as a Director of any other listed company.

Anthony Abraham BEc LLB (Accountancy and Law)

Mr Abraham was appointed a Director on 7 September 2014. Mr Abraham is a member of the Nomination Committee. Mr Abraham holds a range of continuing non-executive directorships with companies within or associated with the Macquarie Group.

Mr Abraham enjoyed 21 years in investment banking with the Macquarie Group gaining extensive experience in the finance sector. In 2003 Mr Abraham established Macquarie's agricultural funds management business and led the business until he departed in 2011, at which time it had grown into a significant operation both in Australia and Brazil.

During the past three years Mr Abraham has not served as a Director of any other listed company.

Neil Reisman JD

Mr Reisman was appointed a Director on 10 May 2016. Mr Reisman is a member of the Audit and Risk Management Committee, the Nomination Committee and a Managing Director and member of the Board of Directors of the Tavistock Group. Since joining the firm in 2004, he has held multiple roles including chairing Tavistock Group's Investment Committee and having the General Counsel and Chief Financial Officer report into him.

Mr Reisman spends most of his time working with portfolio companies within the Tavistock Group. He has more than 30 years of business experience with emphasis on operations, legal, tax and finance. Previously, Mr Reisman worked at various multinational companies, including Arthur Andersen and Amoco Corporation. He received his juris doctor in 1986 from the University of Pennsylvania Law School and his bachelors of science in Accountancy in 1983 from the University of Illinois.

During the past three years Mr Reisman has not served as a Director of any other listed company.

COMPANY SECRETARY

Bruce Bennett BCom, LLB, ACIS, MAICD

Mr Bennett was appointed Company Secretary and General Counsel in November 2006. Before joining the Company, he had held positions including partner and special counsel in leading law firms, where he specialised in company and property law, mergers and acquisitions and other commercial contracts. He has over 25 years' experience in legal practice, having practised in both Queensland and New South Wales. Mr Bennett is a Chartered Secretary and a member of the Australian Institute of Company Directors.