Investor Presentaiton
SUMMARY
INGHAM'S
Always Good
OPERATIONS RECOVERING WELL BUT SOME MARKET-WIDE HEADWINDS REMAIN
Poultry is an attractive and growing sector with a significant consumer price advantage over red meat and seafood alternatives - poultry is a strategic focus
area for our key customers, reaffirming our optimism for the category over the medium to longer term
Transitioning from FY22 operational challenges with recovery ongoing
Focus is on returning the business operations and performance to full recovery; processing activities running to normal schedules producing a full
product range
Implemented initiatives to address the reduced 1H farming performance - improving performance trend early 2H23, and it will be later in 2H before the
benefits of more chickens are seen and the financial benefits accrue
Business Transformation¹ program has been postponed for the medium-term following completion of the design phase, focusing management effort
with investment prioritised on high returning projects that will support the further recovery and future growth of the business
■General inflation and cost headwinds in FY23
Pricing of key feed ingredients stabilised in 1H but expected to remain elevated versus longer-term levels due to tight global supply and increased
logistics costs
Cost of sales increases from inflationary pressures on input costs, which are expected to continue to increase across the business in 2H23, including
labour, fuel/distribution, ingredients, packaging, CO2 and utilities
Group ASP has grown strongly, increasing 8.5% versus the prior corresponding period, and 10.7% versus 2H22
Remain focused on ensuring pricing offsets ongoing feed cost and general inflationary pressures and will pass on further price increases as required
Opened new Victorian DC in August; Northern NSW breeder farm commenced operations in November
Investing in automation and our network, future proofing the business through improved capability to meet current and future consumer requirements
■ Continuous improvement program major focus area in FY23 and beyond - approximately 300 projects identified or underway
Leverage expected to improve as low 2H22 earnings are replaced in the rolling 12-month earnings measure
Capital expenditure expected to progressively return to normal run-rate, with new investment focused on driving capacity and capability, including
automation
Investor day to be held following release of Inghams FY23 results (targeting 4Q 2023)
1. Refers to business processes, ERP and IT transformation
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