Midway : Chair's and CEO's Presentations to AGM

For personal use only

MIDWAY LIMITED ABN 44 005 616 044 10 The Esplanade, North Shore VIC 3214 T [phone]

www.midwaylimited.com.au

MIDWAY LIMITED (ASX: MWY)

29 November 2021

Chair's and CEO's Presentations to Annual General Meeting

The Board of Directors are pleased that shareholders have seen a turnaround in Midway's financial performance and share price in 2020-21.

Tony Price will shortly provide an update on the FY21 results and a trading update on FY22, so I will not go into those issues in detail.

Tony will also comment in detail about the new investment opportunities that are being progressed by the management team at Midway.

Before we talk about the future though, I just wanted to assure shareholders that the Board fully understands your concerns about the unexpected downturn in Midway performance in 2019-20.

As major shareholders, Board Directors have also been disappointed by the lack of dividend payments over the last 24 months.

However, it was important to preserve cash during the downturn so that we could maintain our banking covenants and invest in the business for future growth.

As a result, Midway continues to operate within its banking covenants and National Australia Bank has extended the Company's term debt maturity to September 2024.

The subsequent turnaround at Midway has been driven by the hard work of the management team to improve the underlying performance of the business.

The Board was particularly pleased that Midway continued to operate as an essential business during the COVID-19 pandemic and did not record any cases.

New business opportunities

I would now like to briefly talk to you about several new investment opportunities that we believe offer improved shareholder returns in future.

Firstly, the Board has approved investments in woodfibre processing at Bell Bay in Tasmania and grain storage and handling at the Geelong site.

The woodfibre processing operation at Bell Bay has the potential to provide material earnings growth over the next few years.

The grain facility will also maximise capacity utilisation at our Geelong site and reduce the cost of our take or pay contract with the Port of Geelong.

The two projects will expand our geographic footprint and diversify our sources of revenue.

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Secondly, the Board has also authorised modest investments in emerging technologies in the new carbon economy.

It is early days on these emerging technologies and much work needs to be done to demonstrate satisfactory production economics.

But activated carbon and biochar offer significant sales opportunities in the domestic mining, manufacturing and water purification sectors.

Thirdly, the Board has approved a divestment program of surplus land north of Melbourne that is much more attractive for residential development.

The sale proceeds will be used to fund the planned grain silos at Geelong.

While we are selling surplus land, the Board is also very focused on expanding our plantation estate in south-west Victoria to ensure a long-term supply of timber for our Geelong operation.

As part of this work, the Board has approved an Information Memorandum to third party investors to assess their interest in a plantation estate fund.

Under this proposal, Midway will sell its existing land and trees in the Otway region into a plantation estate fund owned by third party investors.

Midway expects to generate plantation management income from this plantation estate and secure a future woodfibre pipeline for our business in Geelong.

The proposed sale of the existing plantation estate into a fund is also expected to release significant capital. The Board will consider an appropriate balance for the use of these funds on the completion of a sale.

We will keep shareholders informed of developments on both the sale of land, the new plantation estate fund and new business developments as they occur.

Management succession

The Board would like to take this opportunity to publicly thank our departing Managing Director, Tony Price for his leadership and contribution to Midway growth over the last six years.

Mr Price led domestic and international expansion of Midway and the listing of the company on the Australian Securities Exchange.

Mr Price is highly regarded for his extensive forest industry experience, and after he steps down from a full-time executive career early next year, he has agreed to continue as an adviser on our forestry expansion plans in Tasmania from his new home in Hobart.

While Mr Price is leaving a full-time executive career, the Board looks forward to our new Managing Director and Chief Executive Officer, Mr Tony McKenna joining Midway in January 2022.

The Board believes that Mr McKenna has the right combination of skills and experience to lead Midway into a new phase of growth. He has extensive international experience in delivering growth strategies and major investment projects.

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Mr McKenna also has a deep understanding of Australian agribusiness. He has been CEO and Managing Director of Ruyi Australia for the last five years. Before that he was an Executive Director of AgCap and Managing Director of Lempriere Capital.

The Board is optimistic about the opportunities that Midway can exploit in the next few years under the leadership of Mr McKenna and we continue to aspire to sustainable returns that will justify continued shareholder faith in the Company.

Board renewal remains a high priority for the Board. Last year we reduced the size of the Board by 1 Director. This year we believe that maintaining Board stability during a period of significant change is important. As mentioned before, we have a new CEO starting in January and have 3 major projects nearing key decision points this year. As such, we recommend that you vote for the re-election of both Gordon Davis and Tom Gunnersen.

I would like to record my and the Company's appreciation to Tony Price and the Midway Team for the way in which they have performed through this most extraordinary and challenging period.

I will now hand over the Managing Director, Tony Price, to talk through current trading conditions and our business strategies to grow shareholder value.

This announcement has been approved by the Chair of Midway.

For further information contact:
Robert Hadler	Rob Bennett
Investor Relations and Media Adviser	Company Secretary
T: [phone]	T: [phone]
E:[e-mail]	E:[e-mail]

About Midway Limited

Midway Limited is a leading Australian forestry company with headquarters in Geelong, with 100% shareholdings in Plantation Management Partners (PMP) based on Melville Island and Midway Logistics (MWL) based in Bunbury, Western Australia, and majority shareholdings in South West Fibre Pty Ltd (SWF) based in the Green Triangle and Queensland Commodity Exports Pty Ltd (QCE) based in Brisbane. Founded in 1980, Midway is primarily involved in the production, processing and export of high quality wood fibre to producers of pulp, paper and associated products in the Asian region. For further information, visit www.midwaylimited.com.au.

2021 Annual General Meeting of Shareholders onlyNovember 2021

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Disclaimer

This presentation has been prepared by Midway Limited ACN 005 616 044 (Midway or the Company). The information contained in this presentation is current at the date of this presentation.

The information is a summary overview of the current activities of the Company and does not purport to be all inclusive or to contain all the information that a prospective investor may require in evaluating a possible investment. It is to be read in conjunction with the Company's disclosures lodged with the Australian Securities Exchange, including the Company's Appendix 4E for the year ended 30 June 2021 lodged with the Australian Securities Exchange on 26 August 2021. The material contained in this presentation is not, and should not be considered as, financial product or investment advice. This presentation is not (and nothing in it should be construed as) an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security in any jurisdiction.

This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor which need to be considered, with or without professional advice, when deciding whether or not an investment is appropriate. This presentation contains information as to past performance of the Company for illustrative purposes only, and is not - and should not be relied upon as - an indication of future performance of the Company.

To the maximum extent permitted by law, Midway makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of any information contained in this document. To the maximum extent permitted by law, Midway will have no liability (including liability to any person by reason of negligence or negligent misrepresentation) for any statements, opinions or information (express or implied), arising out of, contained in or derived from, or for any omissions from this document.

Forward looking statements

This document contains certain "forward-looking statements". The words "anticipate", "believe", "expect", "project", "forecast", "estimate", "outlook", "upside", "likely", "intend", "should", "could", "may", "target", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance, including Midway's financial

utl	ok, are also forward-looking statements, as are statements regarding Midway's plans and strategies and the development of the market. Such forward-looking statements are not guarantees of future
perf	rmance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Midway, which may cause actual results to differ materially from those expressed
onlyr implied in such statements. Midway cannot give any assurance or guarantee that the assumptions upon which management based its forward-looking statements will prove to be correct or exhaustive, or

that Midway's business and operations will not be affected by other factors not currently foreseeable by management or beyond its control. Such forward-looking statements only speak as at the date of this document and Midway assumes no obligation to update such information.

useNon-IFRS information

This presentation includes certain financial measures that are not recognised under Australian Accounting Standards (AAS) or International Financial Reporting Standards (IFRS). Such non-IFRS financial measures do not have a standardised meaning prescribed by AAS or IFRS and may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with AAS or IFRS. Recipients are cautioned not to place undue reliance on any non-IFRS financial measures included in this presentation. The non- IFRS information has not been subject to audit or review by Midway's external auditor.

All references to dollars are to Australian currency unless otherwise stated.

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