#1INGHAM'S Heart of the Table Inghams Group Limited 1H FY2018 Results Presentation 22 FEBRUARY 2018#2INGHAM'S Important notice and disclaimer Disclaimer Heart of the Table The material in this presentation is general background information about the activities of Inghams Group Limited (Ingham's) and its subsidiaries (Ingham's Group), current at the date of this presentation, unless otherwise noted. It is information given in summary form and does not purport to be complete. It should be read in conjunction with the Ingham's Group other periodic and continuous disclosure announcements lodged with the Australian Stock Exchange, which are available at www.asx.com.au. It 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. These should be considered, with or without professional advice when deciding if an investment is appropriate. This presentation includes non-IFRS information including EBITDA and Pro-forma, which Ingham's considers useful for users of this presentation to reflect the underlying performance of the business. Non-IFRS measures, have not been subject to audit. This presentation may contain certain "forward-looking statements" and comments about future events, including Ingham's expectations about the performance of its businesses. Such forward-looking statements may include forecast financial information about Ingham's, statements about industry and market trends, statements about future regulatory developments and the progress of current developments and statements about Ingham's strategies and the likely outcomes of those strategies. Forward-looking statements can be identified by the use of forward-looking terminology, including, without limitation, the terms "believes", "estimates", "anticipates" "expects", "predicts", "outlook", "guidance", "plans", "intends", "should", "could", "may", "will", "would" and other similar expressions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and are provided as a general guide only, should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Ingham's. Actual results, performance or achievements could be significantly different from those expressed in or implied by any forward-looking statements. There can be no assurance that actual outcomes will not differ materially from forward-looking statements. Nothing contained in this presentation is, or should be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Ingham's. Ingham's does not undertake any obligation to update or review any forward-looking statements or any other information contained in this presentation. This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities and nor is it intended to be used for the purpose of or in connection with offers or invitations to sell or subscribe for or buy or otherwise deal in securities. PAGE // 1#3Broiler Farm South Australia INGHAM'S Heart of the Table 01 Group highlights#4Group highlights Delivering on our strategy - growing volumes and earnings with strong cash flow Highlights > Chicken remains the competitive protein with 3.7% growth in core Chicken & Turkey volumes despite cycling of customer EDLP initiatives in FY17 Strategy implementation on track and delivering improved returns > Rising energy and feed costs either offset or being passed on to customers across all channels INGHAM'S Heart of the Table Improved New Zealand performance driven by poultry volume increases and recovery of dairy feed volumes > Strong operating cash flow generation, supported by asset sales. Leverage ratio reduced to 0.9x > Project Accelerate continues to deliver in line with expectations - - benefits flowing through in improved yields, reduced unit costs and improved utilisation of assets initiatives on track in network rationalisation, automation, labour efficiency, procurement and others > Progress made on identifying further opportunities including in farming, further processing and feed Strategy progress > Capital investment in capacity and efficiency continues as planned - - South Australia hatchery and breeder investments now fully operational new South Australian feed mill progressing well new Queensland distribution centre operational Queensland feedmill acquired to compliment existing capacity Note: Total Poultry volumes includes core chicken and turkey products in addition to ingredients PAGE // 3#5Financial highlights – 1H FY18 vs 1H FY17 Poultry Volume Gross Profit EBITDA EBITDA (underlying) NPAT Net debt EPS 255.2kt ↑ 2.8% $243.1m ↑ 6.1% $116.2m $108.9m $65.7m ↑ 22.0% ↑ 14.8% ↑ 28.1% $193.3m ↓104.4m 17.7 cps > Total Poultry volume growth of 2.8% (core chicken and turkey products grew at 3.7%) > Revenue fall of 1.7% to $1,206.1m, influenced by reduced third party feed volumes and lag in feed prices > EBITDA growth of 22.0% to $116.2m > Underlying EBITDA growth of 14.8% to $108.9m (excluding profit on sale and restructuring) > NPAT growth of 28.1% to $65.7m Financial performance > Profit on sale of $14.1m in part offset by restructuring initiatives of $6.8m > Net Cash provided by operating activities excluding interest and tax of $128.4m, 110.5% of EBITDA > Net Debt of $193.3m (leverage ratio 0.9x) > Earnings Per Share (EPS) of 17.7 cents > Interim dividend of 9.5 cents per share (dividend policy remains unchanged) Note: 1H FY18 numbers are unadjusted statutory results. 1H FY17 numbers are pro forma. A reconciliation between 1H FY17 pro forma and statutory results is included in the Appendix Note: Total Poultry volumes includes core chicken and turkey products in addition to ingredients Note: EBITDA refers to earnings before interest, tax, depreciation and amortization. Underlying EBITDA excludes profit on the sale of assets and restructuring cost. A reconciliation of underlying EBITDA to EBITDA is shown on page 9 INGHAM'S Heart of the Table Interim Dividend 9.5 cps PAGE // 4#6Segment Information - Australia INGHAM'S Heart of the Table Pro forma Variance % 1H FY2018 1H FY2017 $ millions Australia Poultry volumes (kt) 216.2 211.9 4.3 Feed volumes (kt) 191.7 228.0 (36.3) 2.0 (15.9) Revenue 1,015.0 1,041.5 (26.5) (2.5) EBITDA 94.3 77.5 16.8 21.6 EBITDA % 9.3% 7.4% 1.9% INGHAM'S Heart of the Table Table Pleasers DINO CHICKEN NUGGETS WITH CORN AND CARROT NO ADDED HORMONES 100% AUSSIE CHICKEN Love 'em INGHAM'S Heart of the Tabl Table Pleasers CHICKEN MINI DRUMS HONEY MUSTARD Love'em NO ADDED HORMONES 100% AUSSIE CHICKEN GOOD SOURCE OF PROTEIN 1kg NET Frech Chicken NET 400g ✔SOURCE OF PROTEIN © SINGE Note: Total Poultry volumes includes core chicken and turkey products in addition to ingredients Summary: Australia > Poultry volume growth excluding ingredients of 2.7% Price increases passed through across the vast majority of volume and in all channels, reflecting flow through of higher electricity, gas and feed prices, if not offset Accelerate benefits delivering profit improvement while leveraging the volume growth of the last 18 months Retail Continued growth in retail volumes, despite cycling of customer EDLP initiatives Growth in premium penetration, e.g. Free Range QSR & Food Service > Continued growth in fresh volumes Increased competition in Further Processed segment Wholesale & Export > Wholesale market prices reflecting flow through of cost price increases Export volumes remain < 2%, primarily for clearance Feed > Reduction in volume reflects cycling of third party customer loss in Q2 FY17 and lower demand from smaller chicken feed customers PAGE // 5#7Segment Information - New Zealand Pro forma Summary: New Zealand 1H FY2018 1H FY2017 Variance % $ millions New Zealand Poultry volumes (kt) 39.0 36.3 2.7 7.3 Feed volumes (kt) 78.7 69.1 9.6 13.9 Revenue 191.1 185.8 5.3 EBITDA 21.9 17.7 4.2 2.9 23.7 EBITDA % 11.5% 9.5% 2.0% Waitoa only free range chicken Waito free range chicky Wate Wa FOOTITIES Wait Wait Wait We the waitoafreerange.co.nz Note: All financial numbers are in AUD Note: Total Poultry volumes includes core chicken and turkey products in addition to ingredients INGHAM'S Heart of the Table Challenging market conditions continued into this half Improvement in trading performance reflects a continuation of 2H FY17 trends Poultry volume growth led by Retail and QSR Focus on higher value channels, leveraging strong brand position of Waitoa Continued focus in operational efficiencies driving improved performance > Disciplined working capital performance continues inventory days consistent with Dec 16 and June 17, - at ~31 days, and cash conversion of ~15 days Third party feed sales Recovery in dairy feed volumes as dairy demand has improved on the back of milk price recovery > Third party chicken feed sales in line with expectations PAGE // 6#8Further Processing Plant Edinburgh Parks, South Australia INGHAM'S Heart of the Table Curce 02 Financial results#9Profit & Loss $ millions Pro forma 1H FY2018 1H FY2017 Variance % Poultry volumes (kt) 255.2 248.2 7.0 2.8 Feed volumes (kt) 270.4 297.1 (26.7) (9.0) Total Revenue 1,206.1 1,227.2 (21.1) (1.7) Gross Profit 243.1 229.0 14.1 6.1 EBITDA 116.2 95.2 21.0 22.0 Depreciation & amortisation (22.8) (18.3) (4.5) (24.6) EBIT 93.4 76.9 16.5 21.4 Net financing costs (8.1) (7.9) (0.2) (2.5) Tax expense (19.6) (17.7) (1.9) (11.0) Net profit after tax 65.7 51.3 14.4 28.1 Gross profit % 20.2% 18.7% 1.5% EBITDA % 9.6% 7.8% 1.8% 8.0 24.1 Pro forma earnings per 17.7 13.8 3.9 27.9 share (cents) 1 1. A reconciliation to 1H FY2017 Statutory EBITDA of $61.5m and 1H FY2017 Statutory NPAT of $9.0m is set out in the Appendix Pro forma net profit after tax/post IPO weighted average shares outstanding. 1H FY2017 restated calculated on post IPO weighted average shares outstanding instead of actual weighted average shares outstanding as previously reported. INGHAM'S Heart of the Table Volume & Revenue Growth Continued growth in poultry volumes NZ volume run rate consistent with 2H FY17 1H vs 2H seasonality in Australian market will be more evident (in a 52 week year) Revenue fall driven by lagged effect of feed prices and reduced Third Party feed volumes in Australia EBITDA +22.0% Accelerate has delivered on a range of efficiency initiatives to deliver margin improvement, following rapid volume growth in FY17 Increase in other expenses including Distribution and SG&A due to restructuring initiatives (see over) > Profit on sale of properties in part offset by restructuring expenses NPAT +28.1% Net financing costs comparable with pcp One off tax credit of $3.1m upon settlement of historical tax dispute PAGE // 8#10EBITDA reconciliation $ millions EBITDA (underlying) Pro forma 1H FY2018 1H FY2017 Variance % 108.9 94.8 14.1 14.9 Profit on sale 14.1 0.4 13.7 Restructuring (6.8) (6.8) Redundancy (4.9) (4.9) Breeder farm exits (1.9) (1.9) EBITDA 116.2 95.2 21.0 22.0 EBITDA (underlying) Group EBITDA % 9.0% 7.7% AUS EBITDA % 8.6% 7.4% INGHAM'S Heart of the Table Profit on sale 1H FY18 profit on sale attributable to sale of Wanneroo farming and feedmill site (WA) 1H FY17 profit on sale from Foggo Road (SA) and Cardiff (NSW) processing plants Restructuring as we implement Accelerate 1H FY18 restructuring costs incurred as volumes continue to be rebalanced to QLD and SA - consequent labour restructuring for efficiency at Somerville (VIC processing facility) and Prestons (NSW distribution centre) cost associated with NSW breeder farm closures No restructuring costs were included within reported EBITDA in 1H FY17 PAGE // 9#11Cash Flow and Balance Sheet $ millions Pro forma 1H FY2018 1H FY2017 Variance INGHAM'S Heart of the Table 43.0 Cashflow Non-cash items relates to the profit on sale of Wanneroo ($14.1m) and other minor items ($1.5m), primarily LTIP > Continued improvements in working capital through tight inventory and receivables management Operating cash conversion 110% Net Debt to EBITDA reduced to 0.9x EBITDA 116.2 95.2 20.9 Non-cash items (15.6) (0.3) (15.3) Changes in working capital 27.1 (15.9) Changes in provisions 0.7 0.2 0.5 Cash flow from operations 128.4 79.2 49.2 - Cash conversion ratio 110.5% 83.2% 32.8% Working capital Dec-17 Jun-17 Variance Dec-16 Capital expenditure - Inghams (29.8) (60.4) 30.6 Receivables 232.5 231.5 (1.0) 259.9 3rd party capital recovered / 8.6 (15.7) 24.3 (for recovery) 1 Biological assets 109.2 112.5 3.3 112.1 Proceeds from sale of assets 57.0 1.1 58.1 Inventories 140.8 156.5 15.7 144.5 Net cash flow before financing & tax 164.2 $ millions December 2017 Pro forma June 2017 Variance Capital program 4.2 160.0 Payables Total (287.9) (278.8) 9.1 (241.3) 194.6 221.7 27.1 275.2 Total Assets Net Debt Net Debt/LTM EBITDA 1. 1,095.7 1,082.5 193.3 0.9 297.7 1.5 Third party capital agreements in place, funds to be received 13.2 104.4 0.6 Capital program on track, below pcp as expected Asset sales relate to the sale of Wanneroo (WA) and Burton Road (SA) > Sale of Leppington (NSW) unconditional in Feb 2018 > Third party capital recovered primarily relates to SA feed mill and SA breeder farm expansion projects PAGE // 10#12Feed mill Berrima, New South Wales M INGHAM'S Heart of the Table NGHAM UniS 03 Strategy update#13Ingham's A World Class Food Company - INGHAM'S Heart of the Table INGHAM'S Heart of the Table A WORLD CLASS FOOD COMPANY HIGH PERFORMING PEOPLE We aim to outperform INTEGRITY Clarkclit cur with the 'ghest bastant CUSTOMER SERVICE Exceed our customers' expectations COOPERATIONAL EXCELLENCE Sve forward cless operations SAFETY besale laye OUR PURPOSE: To be at the Heart of Every Table. QUALITY Deliver allity In ad in we do PAGE // 12#14SA Project Accelerate Implementation of the multi year transformation project is well underway > Labour productivity > Innovation and Differentiation Focused exports strategy Accelerate > FP network utilisation > Farming efficiency Feed business strategy > Automation > Accelerate Procurement > Network rationalisation (Cardiff) > Turkey turnaround > Supply Chain efficiencies Capital investment in capacity & productivity > 10 year network plan > Integrated Planning Foundations > IT capability & infrastructure > Capital efficiency Year 1 > Build key skills & experience > Management refresh Increasing premiumisation Underlying market growth Year 5 The growth benefits from Project Accelerate are designed to allow Ingham's to remain competitive, mitigate inflation in costs and contribute to profit growth INGHAM'S Heart of the Table PAGE // 13#15Strategy update - Accelerate INGHAM'S Heart of the Table Project Accelerate Automation delivering benefits in improved processing yields and reduced unit costs across major Primary plants program continues with deboning initiatives planned at Te Aroha (New Zealand) and a focus on FP plants further opportunities in process streamlining and plant debottlenecking Labour savings continued to be delivered through improved labour productivity and EBA renegotiation EBA's at major plants closed out and operational, focus on delivering benefits from flexibility provided Network rationalised with volume growth in QLD and SA, improving utilisation and unit costs consequent reduction in NSW and some VIC production Procurement, Turkey and Supply Chain initiatives tracking as planned Further opportunities identified in Farming, Further Processing and Feed > Capital investment program tracking to plan Completed breeder farm Yumali, South Australia Note: The growth benefits from Project Accelerate are designed to allow Ingham's to remain competitive, mitigate inflation costs and contribute to profit growth PAGE // 14#16Strategy update - energy cost and feed prices Energy costs Feed prices Energy cost increases continue to flow through - gas prices currently ~30% higher than current contract which expires in December 2018 INGHAM'S Heart of the Table electricity supply contracted to the end of FY18 with progressive procurement options for FY19 and beyond > All industry participants face similar challenges, as evidenced by recent market price increases Continue to focus on offsetting increases via Project Accelerate initiatives and pass on where necessary > Expect to benefit from recent capital investment in more efficient greenfield sites and DCS > Feed prices have continued moving higher in recent months > Over 60% of Australian poultry volumes supplied with feed pass through mechanisms and other cost adjustments Our forward coverage extends approximately 9 months (similar to that previously communicated) Market pricing expected to move in line with feed price movements as per historical trends Smaller feed customers under pressure from rising feed prices in Australia, impacting on volumes NZ feed prices tend to be more stable and dairy demand is strengthening PAGE // 15#17Strategy update - Feed INGHAM'S Heart of the Table Focus on providing self sufficiency for own use, and improving mill utilisation and profitability of third party sales Construction of greenfield feed mill in Murray Bridge (SA) is on track to open in 2018 > Acquired existing Wacol (QLD) mill during 2H FY18, consistent with strategy of feed self-sufficiency Well advanced in planning for a new state of the art feedmill in WA, as part of WA expansion > Dairy feed business (NZ) and Mitavite (horse feed) performing well Λ Continue to review improvement opportunities in the commercial stockfeed business Feed Strategy Feed mill under construction Murray Bridge, South Australia PAGE // 16#18Breeder Farm Matamata, New Zealand H INGHAM'S Heart of the Table 04 Outlook#19Outlook INGHAM'S Heart of the Table > Strategy implementation remains on track, with further opportunities identified > Accelerate benefits expected to continue to underpin cost reduction and profit improvement as planned > Increases in energy and feed costs expected to continue and, where they are unable to be offset, flow through to market price increases consistent with recent experience 1H seasonality skew more evident in 52 week year > New Zealand market dynamic remains challenging > Some third party feed customers continue to struggle with rising prices > Further asset sales expected to offset further restructuring costs in FY18 > Capital management options under review > Dividend policy remains unchanged PAGE // 18#20INGHAM'S Heart of the Table Appendix#21Reconciliation of 1H FY17 Statutory results to pro forma INGHAM'S Heart of the Table $ millions Statutory EBITDA 1H FY2017 61.5 1. Removal of costs of listing on ASX in November 2016 IPO transaction costs Advisory fees 1 28.0 2 1.2 2. Relates to fees for services charged by TPG entities that will not be incurred post listing Write off previous LTI scheme 3 Transformation & relocation costs 4 2.2 3.3 Full period public company costs 5 (1.0) Pro forma EBITDA Statutory NPAT 95.2 9.0 IPO transaction costs Advisory fees 1 19.6 2 0.8 Write off previous LTI scheme 3 2.2 Transformation & relocation costs 4 2.3 Full year public company costs 5 (0.8) Cost of exit from finance facilities 6 12.6 Capital structure adjustment 7 4.5 Tax adjustments 8 1.1 Pro forma NPAT 51.3 3. Relates to the remaining share based payments expense to be recognized in FY17 relating to the previous LTI scheme 4. Consulting and other costs in relation to the transformation program and the costs relating to the relocation of head office incurred in FY16 5. Adjustment to include a full period of public company related costs and replacement LTI scheme 6. Payment for the early termination of interest rate swap contracts and write off of deferred borrowing costs resulting from refinancing as part of the listing 7. Adjustment to reflect the interest and financing costs for the capital structure in place as a result of the listing 8. Adjustments to normalise certain tax related charges half on half PAGE // 20#22Risks Summary (per Financial Statements) Material business risks faced by the Group that may have a significant effect on the financial prospects of the Group include: INGHAM'S Heart of the Table > Import restrictions: Changes to import quarantine conditions in Australia and/or New Zealand that would allow additional forms of poultry to be imported could result in changes to the poultry market that would adversely impact Ingham's financial performance. Food safety and disease outbreak: If products of Ingham's or a competitor became unsafe or were to be perceived as unsafe, reduced demand for Ingham's products or for poultry products as an industry could follow. Food safety costs can lead to significant costs being incurred for recalls or other operations to address such issues, in addition to compensation, penalties or liability claims which could be incurred. Outbreak of avian disease(s) occurring in Ingham's flock or in geographic areas in which Ingham's operates could lead to restriction on the use or transportation of affected poultry. Such disruption to supply, in addition to the other events identified here could have an adverse effect on Ingham's financial performance. > Supply chain disruption: Failure of a parent stock supplier, poor animal husbandry practices, poor feed quality or outbreak of disease could all cause a significant reduction in the volume or quality of Ingham's parent stock or broiler stock, limiting the Group's ability to supply sufficient volumes of product. Disruption to the supply chain such as time critical delays, failure or dispute with key suppliers, severe weather events, fires, floods, failure in the supply of energy, water or other significant inputs or other events of disruption could limit the Group's ability to supply sufficient volumes of product and have a material adverse impact on the Group's financial performance. Regulatory factors: Ingham's requires a range of licences, permits and accreditations/certifications relating to food standards, animal welfare, workers compensation and the environment in order to continue operating successfully. Inability to secure or retain these regulatory approvals, or amendments or revoking of these approvals could have an adverse effect on Ingham's financial performance. Ongoing compliance with laws and regulations in the countries in which Ingham's operates, and ability to comply with changes to these laws and regulations are material to Ingham's business. Failure to do so would have a material adverse impact on Ingham's. > Transformation projects: Project Accelerate involves material capital investment and is expected to deliver cost savings and efficiencies to the business in future periods. Delays in the project or cost overruns, in addition to realised results differing from estimates, may negatively impact Ingham's financial performance compared to management's forecasts. > Material increase in input costs: There have been recent actual and forecast increases in a number of input costs such as utilities and commodities, ie grains and legumes. While Ingham's has a range of cost pass through arrangements in place with customers, especially in respect of feed prices, there may be instances where Ingham's is not able to pass through, or is delayed from passing through, increases in these costs to customers, resulting in the potential risk of margin erosion. PAGE // 21