Ingham's Group Highlights and Financial Update
Changes to Lease Accounting
INGHAM'S
Heart of the Table
> AASB16 will be adopted from FY20 using the modified retrospective transition approach with no restatement
of prior years
> The implementation of AASB16 will significantly change the reported results, but there will be no economic
impact to the group, its cash flows, debt covenants or shareholder value
> The results presented going forward will reflect the statutory outcome as well as underlying results which will
exclude the impacts of this change
> An initial recognition of a right of use asset and lease liability, will result in an increase in total assets of
approx. $1.8b and total liabilities of $1.8b, with no material change to net assets
> EBIT and EBITDA increases materially as a result of operating lease expenses being replaced by
depreciation and finance costs
> The Statutory NPAT will be impacted by a reduction of approx. $21.4m; underlying NPAT will not be impacted
> Dividend policy in FY2020 to maintain payout ratio of 60-70% of underlying NPAT
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